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Music Industry 14 June, 2005

Bob Morelli Named Executive Vice President/ General Manager, RED Distribution

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NEW YORK (Sony BMG) - Bob Morelli has been named Executive Vice President and General Manager, RED Distribution, it was announced today by Bill Frohlich and Jordan Katz, Co-Presidents of SONY BMG Sales Enterprise. The appointment is effective immediately.

In his new role, Mr. Morelli will oversee all areas of RED Distribution's operations, including sales, marketing, new media, field marketing and support services. Reporting to him will be RED's senior management team that includes Alan Becker, Senior Vice President, Product Development; Tony Timpano, Vice President, Business & Legal Affairs; Greg Bell, Vice President, Finance & Administration; Laura Marques, Vice President, Marketing; Lou Tatulli, Vice President, Field Sales; and Howard Gabriel, Senior Vice President/General Manager, RED Ink.

'Bob is widely respected by the label and retail communities for his expert understanding of the music market, and recognized for his ability to work in true partnership with the labels he distributes,' commented Mr. Frohlich.

'Bob's impressive track record in sales and marketing combined with his entrepreneurial spirit and integrity make him distinctly qualified to lead RED,' commented Mr. Katz. 'I am confident that under his leadership, RED's unique position as the dominant resource for the independent community will only be strengthened.'

'I look forward to working with the talented RED team that, with Ken Antonelli's leadership, built the company into the preeminent distributor for independent labels,' commented Mr. Morelli.
'Together we will continue to bring innovation and dedication to RED's incredible family of labels while enhancing our capabilities in a number of key areas to better serve our labels and their artists.'

Bob Morelli most recently served as Executive Vice President/General Manager, SONY BMG MUSIC Sales, for which he oversaw the integration of the former sales operations of BMG Distribution and Sony Music Distribution. Prior to that he was Senior Vice President, Marketing and Branch Operations for BMG Distribution, where he held a number of position of increasing responsibility since joining the company in 1985. During his tenure at BMG Distribution, he was responsible for overseeing distribution, sales and marketing for a group of third-party labels that included Razor & Tie, V2, Sanctuary, Wind-up Records, ATO Records, Time Bomb, Octone, and Robbins Entertainment, among others. He was also responsible for restarting Wasabi, an independent distribution arm, as well as for running BMG's Independent Distribution Network. He started his career at Polygram as a Sales Representative.

About RED Distribution
RED Distribution, LLC is the preeminent independent music distribution company. RED distributes more than 20 third-party independent labels and SONY BMG product throughout the United States and Canada, and offers comprehensive marketing and new media departments.

About SONY BMG MUSIC ENTERTAINMENT
SONY BMG MUSIC ENTERTAINMENT is a global recorded music joint venture with a roster of current artists that includes a broad array of both local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. SONY BMG MUSIC ENTERTAINMENT is 50% owned by Bertelsmann A.G. and 50% owned by Sony Corporation of America.






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