Santa Monica, California – January 28, 2002 – Universal Music and Video Distribution (UMVD) has established NetReach, a new media area dedicated to developing product and artist awareness on and through the Internet, it was announced today by Jim Urie, President, UMVD.

Based in Los Angeles, this new UMVD division will be managed by Angela Sanchez, Manager, Internet Marketing, NetReach, who will report directly to Susan Roberts, Senior Director, New Media, NetSource, UMVD. NetReach was “incubated” by Universal Music Group’s eLabs as the company’s online “grass roots” marketing division starting in 1998. The division is designed to bolster product and artist awareness through the creation, promotion and management of online fan groups and communities. Under the UMVD umbrella, NetReach will continue to function as a full-scale online grassroots marketing company, offering third party promotions, search engine optimization, fan postings, and the creation of artist fan clubs.

NetReach will also be responsible for developing synergistic opportunities that maximize the marketing efforts of its online group and those of UMVD’s field representatives, artist development representatives and college representatives. NetReach will also offer UMVD’s music labels a unique online management technology called U-Fanz, an advanced affiliate-network management tool, that can create, track and report online “viral” marketing. In addition to music, NetReach will also extend its online grass roots marketing efforts to include game, motion picture and video properties distributed by UMVD.

Said Mr. Urie, “By extending our efforts to include online marketing, UMVD is better positioned to capitalize on the marketing opportunities that exist across all areas in a more strategic and integrated way. It is great to have this group resource as part of our new media division.”

Said Ms. Roberts, “NetReach will continue to provide a strong and experienced team of online grassroots marketers to help bolster product sales by using the Internet as a marketing and development tool. Angela has been involved in this effort since its inception and we are excited that she will continue to oversee its operation and growth.”

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, Univision Music Group, DreamWorks, Disa, ABKCO, Hollywood, Lideres Entertainment, Lyric Street, Northsound, RMM, Thump, Varese Sarabande, Walt Disney, 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 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.