Platinum Entertainment, Inc. Reports 17 Percent Revenue Increase In 1998

Business Wire, March 3, 1999

Platinum's subsidiary labels continued to achieve success throughout 1998. The House of Blues Music Company recently celebrated Grammy victories for Chicago guitar legend Otis Rush, whose album "Any Place I'm Going" was voted "Best Traditional Blues Album," and Cissy Houston, whose "He Leadeth Me" was named "Best Traditional Soul Gospel Album." Effective January 1, 1999, the House of Blues label was relocated to Platinum's corporate headquarters near Chicago, the home of the blues. Upcoming 1999 releases include a 70th anniversary tribute to the Dixie Hummingbirds, with Stevie Wonder, Paul Simon and Aretha Franklin, and additional volumes in the "This Ain't No Tribute" series, featuring blues greats interpreting the music of Bob Dylan, Eric Clapton and Led Zeppelin. The series debut, "Paint It Blue -- Songs of the Rolling Stones," was Billboard magazine's no. 14 best-selling blues album of 1998.

Billboard also named Platinum-owned Intersound the no.1 best-selling label for classical recordings in its year-end issue. Intersound released the top three best-selling budget classical albums in 1998, "Nutcracker Christmas," "Mozart--Greatest Hits" and "Romance and Roses." The Company also acquired The Royal Philharmonic Collection in 1998 and anticipates regular releases of new recordings from Britain's most recognized orchestra through 2004.

Platinum's best-selling albums of 1998 included Taylor Dayne's "Naked Without You"; Vickie Winans' Stellar Award-nominated "Live in Detroit" ("Live in Detroit II" is scheduled for release in the second quarter of 1999); T. Graham Brown's "Wine Into Water"; John Denver's "A Celebration of Life"; Booty Mix 3 (the Booty Mix dance compilation series has sold in excess of 500,000 units; Booty Mix 4 will be released in 1999) and Taliesin Orchestra's "Maiden of Mysteries," the follow-up to 1997's best-selling "Orinoco Flow: The Music of Enya."

Platinum Entertainment, Inc. produces, licenses, acquires, markets and distributes high quality recorded music for a variety of music formats. Platinum and its wholly owned subsidiaries currently produce music for the Gospel, Country, Blues, Adult Contemporary, Urban/Dance and Classical/Themed formats, primarily under its Platinum, CGI Records, House of Blues Music Co., River North Records and Intersound labels. Platinum's products include new releases, typically by artists established in a particular format, as well as compilations that enable Platinum to exploit its catalog of master recordings.

This press release contains certain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve substantial risks and uncertainties. A number of important factors could cause the Company's actual results, performance or achievements for fiscal 1998 and beyond to differ materially from those expressed in such forward-looking statements. These factors include, without limitation, commercial success of the Company's repertoire, its leveraged capital structures, charges and costs related to acquisitions, permanent acquisition financing needs, relationships with artists and producers, attraction and retention of key personnel, general economic and business conditions and enhanced competition and new competitors in the recorded music industry and other factors described in the Company's filings with the Securities and Exchange Commission.