Emi Announces New 5-Point Multimedia Strategy;

Business Wire, May 23, 1995

NEW YORK--(BUSINESS WIRE)--May 23, 1995--EMI announces new 5-point multimedia strategy:

o Creative Alliances with Multimedia Software Developers o Technology Venture with Apple Computer o Releases of Long Form CD-ROMs and Enhanced CDs o Continuing Program of Video CD Releases o Continuing Rollout of Internet Sites

EMI Music President and CEO Jim Fifield today announced a creative strategy and global initiatives to further build upon EMI's position in multimedia.

Creative Alliances with Software Developers

First EMI will combine its broad range of repertoire with the cutting-edge talents of some of the hottest multimedia software developers. In line with this strategy, EMI today announced that it has:

o Entered into a creative alliance with Virgin Interactive Entertainment, one of the world's leading developers of CD-ROM entertainment products, to work with EMI artists to develop, manufacture and distribute full-length interactive CD-ROM entertainment titles.

o Entered into a creative alliance with the Von Holtzbrinck Group, one of the world's premiere publishers, to develop, manufacture and distribute full length interactive CD-ROM reference and resource titles utilizing EMI repertoire.

In a related development, EMI Records Group North America has reached an agreement with Virgin Interactive Entertainment under which Virgin Interactive will distribute EMI's Enhanced CD releases through software retailers in North America.

Technology Venture with Apple

Second, EMI is forming a technology venture with Apple Computer, under which Apple will provide a state of the art multimedia studio and technical staff at EMI's famed Abbey Road Studios. This unique studio will bring together cutting edge recording and multimedia technology.

In addition, Apple will supply and support a number of additional CD-ROM authoring stations for Virgin and EMI companies throughout the world. The studio and development stations will provide artists with the most comprehensive and technologically advanced facilities and tools to support their multimedia projects.

One of the principal aims of the venture between Apple and EMI is to speed the introduction of the new Enhanced CD format. To that end, the two companies will be cooperating on the development of Enhanced CD titles.

CD-ROM/ENHANCED CD Releases

Third, EMI plans to release a full slate of long form CD-ROM and Enhanced CD titles from various labels, beginning with releases from Rolling Stones and Queensryche.

o In the early autumn, Virgin Records will be releasing its first fully interactive CD-ROM title from The Rolling Stones, based upon the Grammy-winning audio release "Voodoo Lounge." The Rolling Stones have been fully involved in the development of the title which includes specially filmed footage of all band members, new footage from the Voodoo Lounge tour, spectacular on stage-shots and new mixes of the album tracks. In the U.S. the program will be distributed to software outlets by GTE Interactive and to record retail through EMI's distribution arm CEMA.

o This summer EMI Records Group North America will be releasing its first fully interactive CD-ROM title, "Promised Land," from the multi-platinum EMI Records artists, Queensryche. "Promised Land" is an exciting set of interactive games based upon the music of the group's platinum album of the same name.

EMI has played a leadership role in advancing the Enhanced CD format and will continue to do so with various titles scheduled for release in the autumn.

Video CDs

Fourth, spearheaded by EMI Records U.K.'s video production unit, Picture Music International (PMI), EMI will be continuing its highly successful program of Video CD releases from some of its most important artists. To date EMI has released titles from artists such as Pink Floyd, Tina Turner, David Bowie, Kate Bush and Queen, with further releases planned for Duran Duran, Beastie Boys, Pet Shop Boys, Pink Floyd, Nigel Kennedy, Cliff Richard and Barbara Hendricks. Video CD releases play on any multimedia player set up for the format.

Internet

Fifth, EMI will continue to expand its presence in Cyberspace with the creation of a number of additional Internet sites for its labels and artists.

EMI has been an innovator on the Internet through its ground-breaking Capitol sites for Megadeth (Megadeth Arizona), the Beastie Boys and Adam Ant (the Ant Farm). EMI Holland was one of the first European companies to establish its own site, Parlophone maintains a site and more recently, Virgin Records UK launched its much praised site-"The Raft."

Capitol will soon be launching its own customized site and Virgin France is in the process of establishing a new site in collaboration with a national newspaper "Liberation." The Internet creates an opportunity for record consumers to interact directly with artists and their music-furthering the bond between EMI artists and their fans.

Opportunities for Artists

"We are excited by the broad range of opportunities multimedia opens up for our artists," said Fifield. "Combining the strength of EMI's repertoire with the creative talents and technological capabilities of major multimedia companies is a perfect way to move forward in this exciting new arena. We consider the initiatives announced today to be just the first steps in bringing a wide range of innovative music and artist-driven multimedia product to our consumers around the world."