///Corporate

UNIVERSAL MUSIC GROUP’s “THE VIEWING LOUNGE” LURES PROMINENT ADVERTISING PARTNERS

--Premiere brands select TVL as new advertising platform—
--RoadRunner Features TVL As Its Premiere Music Video Program Offering--



Santa Monica, October 29, 2001
- Universal Music Group (UMG), the world’s largest music company, today introduced The Viewing Lounge (TVL) as the first broadband entertainment program offering premium advertisers a new vehicle for delivering targeted brand messaging, lifestyle-based sponsorships and seamless direct marketing. The Viewing Lounge’s customizable music video programs appeal directly to today’s taste-maker, music enthusiasts between the ages of 15 –30.

TVL’s new advertising platform conveys relevant brand messages to consumers in an engaging banner-free programming environment. Advertisers now have the opportunity to effectively target consumers via customizable genre-based programming and geographic location. Additionally, advertisers may tailor branding campaigns by selecting from TVL’s four key messaging options: 1) main screen rich media and video interstitial; 2) call-to-action direct response; 3) end of entertainment block brand links; and 4) genre-based sponsorships.

Based on strong consumer feedback and over three million broadband user visits during the pilot, TVL has attracted several charter advertising partners, including Pepsi-Cola Company and Time Warner Cable’s RoadRunner.

Pepsi-Cola Company has launched a series of commercials on TVL, focused on its current promotion, Pepsistuff.com. Continuing through January 2002, the Pepsistuff.com campaign features a variety of UMG’s artists. Television commercials and TVL video interstitials are airing, showcasing Interscope’s SmashMouth. Additionally, rising stars, such as, Def Jam’s Christina Milian and Interscope’s City High, are featured in two national radio spots.

RoadRunner, which joined during TVL’s pilot season, features The Viewing Lounge as its premiere music video program. RoadRunner has recently re-launched its high-speed service, offering consumers a multitude of content, services and Internet access. Additionally, RoadRunner is airing a national advertising campaign touting its new programming, with particular emphasis on TVL with its unique program functionality and wide variety of music videos.

“TVL is the first customizable music program created for broadband, offering a next generation advertising and branding platform,” said Lisa Farris, senior vice president of marketing, UMG eLabs. “TVL provides the opportunity for premium brands to reach their target music audiences via the syndication of its programming to national broadband ISP partners.”

TVL enables music enthusiasts to create music video blocks comprised of up to four genres, including Alternative, Rock, Contemporary, Country, Hip-Hop/Rap, Pop, R&B, Latin, and New Releases. In addition to encouraging feedback from fans, TVL offers links where consumers can purchase CD’s and other artist-related items. TVL features more than 600 videos from artists, including 98 Degrees, Blink-182, D12, Enrique Iglesias, Elton John, Limp Bizkit, Ja Rule, Jay-Z, Marilyn Manson, Nelly, Primus, Shaggy, Shania Twain, Sisqo, Weezer, The Cranberries, U2, and Willie Nelson.

TVL will be launching television commercials in the top 10 broadband markets (San Diego, Boston, San Francisco, Hartford, Seattle, Dallas, Denver, Phoenix, New York, and Philadelphia). TVL has also secured placement within the Burly Bear Network, the leading cable outlet dedicated to 18-24 year-old college audiences.

About Universal Music Group

eLabs is the division of Universal Music Group dedicated to exploring, developing, and evolving global business and new technology strategies to expand the role of music in consumer’s lives. eLabs houses an incubation team for developing and implementing new e-music programming, new formats, and digital music distribution initiatives across all emerging technology and convergence platforms, including PC, wireless, PDA’s, Home Networking and TV set-top box systems.

Universal Music Group is the world's leading music company with wholly-owned record operations or licensees in 63 countries around the world. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations.

Universal Music Group consists of record labels Decca Record Company, Deutsche Grammophon, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, MCA Records, Mercury Records, Motown Records, Philips, Polydor, Universal Records, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and UM3 (outside the U.S.). Universal Music Group also includes eLabs, its division dedicated to strategy, business development, and management of new businesses in the online and advanced technology space.

Universal Music Group is a unit of Vivendi Universal, a global media and communications company.

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