The Singing Machine Company and Universal Music — Enterprises in Perfect Harmony with Merchandise License Program for Motown

Business Wire, Feb 12, 2003

Entertainment Editors/Business Editors

COCONUT CREEK, Fla.--(BUSINESS WIRE)--Feb. 12, 2003

Singing Machine to Create Motown-Branded Karaoke Machines and

CD+G's Featuring Legendary Motown Music -- Scheduled for Summer

Launch

The Singing Machine Company (AMEX:SMD), a leading manufacturer and distributor of home electronic karaoke equipment, karaoke music and related audio products, announced today that it has signed a multi-year, domestic merchandise license agreement with Universal Music Enterprises and Motown Record Company, divisions of Universal Music Group, to support a line of Motown-branded karaoke machines and music software.

"Motown clearly is the music industry's most recognizable brand name. To be teaming with one of the world's top entertainment brands is a real coup for The Singing Machine Company. We are thrilled with this new program that reflects our strategy to bring exciting, innovative products to large new markets. With this agreement we are targeting music lovers who grew up on the 'Motown Sound' in the 1960's and 1970's, an important and untapped demographic segment with substantial growth potential. We believe that our new Motown-branded karaoke machines and CD+G's (CD with graphics) featuring the unforgettable Motown music will be a hit with young and middle-aged adults, as well as many teenagers who may be introduced to these memorable songs that continue to shape the musical landscape. Because of growth opportunities like the Motown program and the substantial increase in orders from our major customers over last January, we are optimistic that fiscal 2004 will be another year of record revenue and earnings for Singing Machine," said John Klecha, Chief Operating Officer.

"We are very excited about this innovative program to extend the Motown brand into a new electronics merchandise market segment. Motown Records has left an undeniable mark on our popular culture through its history of groundbreaking music," commented Kojo Bentil, Senior Vice President, Motown Record Company.

The first Motown-licensed karaoke machines and CD's+Graphics with music from the Motown music library should be available in stores beginning in Summer 2003. They will be distributed through leading mass merchandisers, discount merchandisers, warehouse clubs, specialty stores, department stores, toy stores, e-commerce, catalogs and direct to consumer sales, music stores, outlet malls and video stores.

"Motown has spent over 40 years earning its reputation as one of the world's top entertainment brands. We are very pleased to have The Singing Machine Company as a licensee for this truly important American icon. They will be one of the key licensees as our overall licensing and merchandising program for Motown takes shape in 2003," said Andy Richmond, Vice President of The Stronghold Group, who is the exclusive licensing agent for UME as it relates to the Motown trademark and who engineered this deal.

"We are all delighted to have The Singing Machine as part of the ongoing merchandising initiative behind the Motown brand. This type of property is a natural fit to bring our music to consumers in innovative ways," said Charlie Katz, Senior Vice President Strategic Marketing, Universal Music Enterprises.

About Universal Music Group

Universal Music Group is the world's leading music company with wholly-owned record operations or licensees in 63 countries. 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, Lost Highway Records, MCA Nashville, MCA Records, Mercury Records, Motown Records, Philips, Polydor, Universal Music Latino, 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 Strategic Marketing and Commercial Affairs (outside the U.S.). Universal Music Group also includes eLabs, a new media and technology division.

Universal Music Group is a unit of Vivendi Universal, a global media and communications company.

About The Singing Machine Company

Incorporated in 1982, The Singing Machine Company produces and distributes a full line of consumer-oriented karaoke machines, CD with graphics machines and CD+G and audio karaoke music under The Singing Machine, MTV and Nickelodeon umbrellas. The company, which is based in Coconut Creek, Florida, was the first manufacturer to offer karaoke electronic recording equipment and audio software for home use in the U.S.

About The Stronghold Group

Headquartered in Los Angeles, The Stronghold Group is the nation's premier entertainment brand management firm, representing artist, athlete, and entertainment property in the areas of brand management, licensing, merchandising, commercial sponsorships and endorsements, professional representation, event packaging and proprietary product development. Stronghold's services provide artists and entertainment properties with tremendous brand building and brand extension opportunities, in addition to lucrative sources of long-term, ancillary income. The Stronghold Group currently works with music artists such as Dave Matthews Band, Linkin Park, Nelly, Korn, and KISS; entertainment and lifestyle brands such as Motown and Playboy; models such as Victoria Silvstedt and Karen McDougal; and athletes such as extreme sports superstars Daewon Song, Stevie Williams, and street luger Pamela Zoolalian.