Santa Monica, California, November 5, 2002 – Universal Music & Video Distribution (UMVD) announced today that it has entered into a distribution agreement with VI Music, one of the hottest independent labels specializing in “reggaeton” music. The agreement gives UMVD distribution rights within the U.S. and Puerto Rico for all of VI Music’s upcoming releases.

Headquartered in Puerto Rico, VI Music is a leading label for reggaeton music. A mix of reggae, Latin rhythms, hip-hop and rap, reggaeton has quickly become one of the most popular new forms of music in the Latin music genre.

“Our company is extremely excited to work with the Universal Music family,” said Juan A. Vidal, President, VI Music. “We have great expectations for our label and are confident that the reggaeton genre will continue growing and become one of the most exciting music styles in Latin music and beyond. In Puerto Rico, the genre has quickly become the biggest new music breakthrough in the last 25 years and its strength is already being felt throughout the states.”

“Reggaeton is an exciting new genre of music and one of the fastest growing within Latin music,” said Jim Urie, President, UMVD. “We are thrilled to have VI Music as part of the UMVD family of labels and we plan to take their releases to an even wider market within the U.S.”

VI Music repertoire includes Hector y Tito, Nueve Plagas, Fatal Fantasy, Las Gargolas and Magnate y Valentino. In addition to their reggaeton repertoire, VI Music will also release a number of concept albums including the 30th Anniversary of salsa legend Raphy Leavitt.

VI Music’s first releases through UMVD are scheduled for November 5th.

Universal Music and Video Distribution handles the distribution and sales for such labels as The Universal/Motown Records Group, The Island/Def Jam Music Group, Roadrunner, Interscope, Geffen, A&M Records, MCA Records, MCA Nashville, Universal South, Lost Highway, Mercury Nashville, The Verve Music Group, Universal Classics, Universal Music Latino, Universal Music Enterprises, Hip-O, UTV, Univision Music Group, DreamWorks, Disa, ABKCO, Hollywood, Lideres Entertainment, Lyric Street, Northsound, RMM, Thump, Varese Sarabande, Walt Disney, VI Music and Viva Discos as well as theatrical video from Universal Studios.

Universal Music and Video Distribution is a unit of Universal Music Group, 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, Roadrunner, Lost Highway, MCA Nashville, MCA Records, Universal South, 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 Strategic Marketing and Commercial Affairs (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.