///Corporate

UNIVERSAL MUSIC GROUP DISTRIBUTION (UMGD) EXPANDS RELATIONSHIP WITH INGROOVES

Leading Independent Digital Distributor To Now Handle Mobile Distribution For UMGD’s Major Labels



New York, New York, August 12, 2009– Universal Music Group Distribution (UMGD), the award-winning sales and marketing division of Universal Music Group (UMG), the world’s leading music company, has expanded its relationship with INgrooves, a leading provider of digital distribution, marketing and promotion services to the independent music community. As part of this expansion, INgrooves will now handle the distribution of all mobile products on behalf of all of UMGD’s major and distributed labels in North America. The announcement was made today by Jim Urie, President and Chief Executive Officer of UMGD, and Robb McDaniels, Chief Executive Officer and Founder, INgrooves.

Previously, INgrooves handled digital distribution for Fontana, UMGD’s independent distribution arm, and such UMGD-distributed labels as Hollywood, Concord and Big Machine. With this expansion of services, INgrooves will now take on responsibility for the distribution of all mobile products including ringtones, ringbacks, games, video, streaming, wallpapers and other various mobile applications, for UMG’s wholly-owned major labels including Interscope Geffen A&M, Island Def Jam, Universal Motown Republic Group, Universal Music Latin Entertainment, Decca Label Group, Universal Music Enterprises (UMe) and Universal Music Group Nashville, among others.

“The expansion of our agreement with INgrooves is a natural evolution for us and our business partners,” stated Mr. Urie. “Since we began our relationship with Robb and the INgrooves team, we have been impressed with their unmatched technology and the value-added services they bring to the table. This comprehensive approach will enable us to provide even more services, all of which will result in more opportunities for our labels and artists.”

“We’re thrilled to have earned the respect of Jim and the entire UMGD family, and are more than ready to take this next step in our service to that great company,” added Mr. McDaniels. “We look forward to working closely with UMGD and its labels to maximize efforts on the mobile front.”

About Universal Music Group Distribution

Universal Music Group Distribution has been the industry market share leader for the past ten years and consists of four major divisions: Universal Music Distribution (UMD), Fontana, Vivendi Entertainment (VE), and UMGD Digital. UMD handles the distribution and sales for such labels as Universal Motown Republic Group, Island Def Jam Music Group, Interscope Geffen A&M Records, A&M/Octone Records, MCA Nashville, Universal Records South, Lost Highway, Mercury Nashville, Verve Music Group, Decca Label Group, Universal Music Latino, Universal Music Enterprises, Hip–O, UTV, Sanctuary Records, Univision Music Group, Disa, Machete Music, ABKCO, Concord Music Group, Hollywood, Emusica, Lyric Street, RMM, Thump, Rounder, Fonovisa, Varese Sarabande, Walt Disney, Big Machine, Show Dog Records, VI Music, La Calle Records, Sybersound, Hidden Beach, Palm Pictures, and Universal Music Christian Group among many others. Fontana is the company's independent sales, marketing and distribution arm, VE is its theatrical and home entertainment division, and UMGD Digital manages and distributes all of Universal Music Group's digital assets, including mobile.

About INgrooves

INgrooves is a digital media infrastructure company that provides various distribution and marketing services via its INgrooves and ONE Digital divisions. ONE Digital is a proprietary software platform that provides distribution and administration to large distributors, record labels and film production companies at rates far below the industry standard. INgrooves provides clients customized distribution, marketing, promotion, synch licensing and administrative support to help maximize the earnings potential of specific releases or catalogues. For more information, check out www.ingrooves.com.

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