PolyGram Reports Record Third Quarter; Music Operating Income Up 44%

Business Wire, Oct 21, 1998

have been offered for sale. The reclassification reflects the

transfer of certain video distribution activities which will

not be sold as part of PFE. For comparison purposes, prior

periods have been restated.

2. Following the death of Diana, Princess of Wales in September

1997, PolyGram's third quarter 1997 sales included NLG 184

million of sales relating to sales of the commemorative

recordings, Candle in the Wind, 1997 by Elton John and the

BBC Recording of the Funeral Service. All profits were

donated to the Princess's Memorial Fund.

3. Global entertainment group PolyGram is the world's largest

record company with 1997 revenues of over NLG 11 billion (US

$5 billion). Its record labels include A&M, Decca/London, Def

Jam, Deutsche Grammophon, Island, London, Mercury, Motown,

Philips Music Group, Polydor and Verve. Through its PolyGram

Filmed Entertainment division, PolyGram is also a producer

and distributor of film, television and video. PolyGram is

quoted on the Amsterdam and New York stock exchanges.

PolyGram is owned 75% by Royal Philips Electronics NV.