MONTREAL, July 9, 1998 – The Seagram Company Ltd., Royal Philips Electronics and PolyGram N.V. announced today that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 applicable to Seagram’s proposed acquisition of PolyGram expired yesterday at 5:00 p.m. (EDT). The waiting period expired without a request for additional information from the U.S. Federal Trade Commission.

This announcement does not constitute the making of a tender offer for PolyGram shares. Seagram’s obligation to commence the tender offer is subject to customary conditions, including preparation of the offering documents, obtaining necessary regulatory approvals, and the absence of defined materially adverse changes or events. The tender offer, which is expected to commence in the third quarter of this year, will also be subject to several customary conditions, including that 95 percent of PolyGram’s issued share capital be tendered, approval by the Commission of the European Communities, and absence of defined materially adverse changes or events. Offering documents, including the Notice of Offer (in Dutch: biedingsbericht), required under the applicable Dutch rules and regulations, will be made available at that time.