Los Angeles, CA, Monday, March 31, 2008…Universal Music Group Distribution (UMGD), the award winning sales and marketing division of Universal Music Group (UMG), the world’s leading music company, has entered into a strategic alliance with INgrooves, a leading provider of digital distribution, marketing and promotion services to the independent music industry. As part of this venture, Universal Music Group has made a strategic investment in INgrooves. The announcement was made today by Jim Urie, President & CEO of UMGD, and Robb McDaniels, CEO of INgrooves.

The terms and conditions of the transaction were not disclosed.

This partnership further expands UMG’s growing portfolio of strategic media investments, while expanding the services and opportunities that UMGD, and Fontana, the company’s independent distribution subsidiary, provides their partner labels. Utilizing INgrooves’ proprietary and cutting-edge software platform, ONE Digital, the UMGD and Fontana family of labels will directly benefit from superior, seamless digital distribution to all of the major music services, while capitalizing on INgrooves’s comprehensive menu of services which include digital retail sales and marketing, sales reporting, film and video distribution, and mobile.

“Universal is committed to exploring new ways to expand the availability of our artists’ music online, while offering our partner labels the widest array of choices possible in how and where they make their music available,” stated Mr. Urie. “And after much research, we identified INgrooves as the most successful and comprehensive second generation digital distribution company in the market. Through this venture, we will provide our partners with access to the only flexible digital distribution system that allows for innovative structures to maximize their freedom, the connection of the artists’ music to fans, and sales.”

“We started INgrooves six years ago with a mission to develop the finest and most comprehensive digital distribution platform. Through the dedicated efforts of the entire INgrooves team we have achieved that goal,” commented Mr. McDaniels. “Now that the world’s leading music company and its executives have validated the INgrooves brand, its exclusive technology and the comprehensive services that only we can deliver, we are ready to provide UMG unparalleled digital distribution support and expand the proliferation of our platform to an industry in need.”

“Fontana has been at the forefront of offering the most comprehensive digital music distribution services in the industry to the independent sector,” added Ron Spaulding, Executive Vice President and General Manager of Fontana. “And we are delighted to partner with Robb and his team as we further enhance our digital efforts and expand the reach of our partners via INgrooves’ digital platform.”

Most recently, INgrooves served as the exclusive digital distributor of Dolly Parton’s ‘Backwoods Barbie’, her first mainstream release in over 17 years which debuted as the #1 country album on iTunes. INgrooves clients include leading independent music labels such as ESL Music, VP Records, Chocolate Industries, A2M Distribution, Stones Throw Records, Hitchhike Records, bluhammock music, Distinct’ive Records, and artists such as Tracy Lawrence, Thievery Corporation, Los Tigres del Norte, Tila Tequila, The Cool Kids, Prodigy, Lady Sovereign, Too $hort, and The Crystal Method, among many others.

About Universal Music Group

Universal Music Group (UMG) is the world’s largest music company with wholly owned record operations or licensees in 77 countries. Its business also includes Universal Music Publishing Group, the world’s leading publishing company. Universal Music Group consists of record labels Decca, Deutsche Grammophon, Emarcy, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Music Latino, Universal Motown Republic Group, Universal South 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 catalogue of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, a new media and technologies division; Bravado, its merchandising company; and Twenty-First Artists, its full service management division. Universal Music Group is a unit of Vivendi, a global media and communications company.