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Music Industry 13 April, 2005

Sony BMG Music Entertaiment Creates Sony BMG MasterWorks

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NEW YORK (SONY BMG) - SONY BMG MUSIC ENTERTAINMENT has created a new classical music division, SONY BMG Masterworks, it was announced today by Michael Smellie, Chief Operating Officer, SONY BMG MUSIC ENTERTAINMENT. Under the leadership of Gilbert Hetherwick, President, SONY BMG Masterworks, the new division will combine the assets of the former BMG Classics and Sony Classical, including venerable imprints RCA Red Seal, Sony Classical, Deutsche Harmonia Mundi and Arte Nova. SONY BMG Masterworks will also oversee the extensive combined SONY BMG Broadway catalogue and will be responsible for future cast recordings as well as orchestral film score recordings.

"SONY BMG believes in a positive future for the classical music business and has tremendous confidence in Gilbert's vision for SONY BMG Masterworks," commented Mr. Smellie, Chief Operating Officer, SONY BMG MUSIC ENTERTAINMENT. "Given SONY BMG Masterworks' extraordinary combined artist rosters and legendary catalogues, our new classical division is uniquely positioned to capitalize on the global demand for quality classical music. We are committed to a philosophy that a strong classical division can bring both prestige and profitability to our overall operation."

The primary focus of SONY BMG Masterworks will be on classical music in the traditional sense. The new division's plans call for a focused and targeted program of new recordings by both major and developing artists as well the restoration and development of the division's vast and unparalleled catalogue.

Mr. Hetherwick announced the appointment of key members of the SONY BMG Masterworks global management team, all reporting directly to him. They are as follows:

- David Lai - Senior Vice President of A&R and Operations
- Michael Br?ggemann - Vice President of Masterworks Europe
- Steve Schoen - Vice President of Sales, Masterworks
- Faye Perkins - Vice President of Marketing, Masterworks
- Michelle Errante - Vice President of Classical Marketing & Catalogue Development, Masterworks

"With SONY BMG Masterworks' talented team now in place, we look forward to a great future for classical music within SONY BMG MUSIC ENTERTAINMENT," said Mr. Hetherwick. "I am proud to work closely with dedicated, first-rate professionals such as David and Michael as well as the rest of our team, who share my deep commitment to bringing recordings with true classical credibility and musicianship to music lovers the world over."

As Senior Vice President of A&R and Operations, SONY BMG Masterworks, David Lai will be responsible for A&R and Operations and will be based in New York. He joins Masterworks after fifteen years at Sony Music, most recently as Vice President of A&R Administration. He has conducted acclaimed orchestras internationally, and is currently music director/conductor for The Phantom of the Opera on Broadway. Mr. Lai has also produced cast, vocal and jazz albums for Sony, Universal and WEA, among others. Reporting to Mr. Lai will be Deborah Surdi as Vice President of Classical A&R and Paul Cremo as Vice President of Broadway and Soundtracks A&R.

In his new role as Vice President of Masterworks Europe, Michael Br?ggemann will oversee marketing, A&R and promotion for all of the SONY BMG Masterworks projects in Europe. Mr. Br?ggemann brings to the Masterworks team over ten years of experience with Sony Classical in Europe and Germany. He will be based in Berlin.

As Vice President of Sales, SONY BMG Masterworks, Steve Schoen will be responsible for all aspects of sales and will be the key liaison between the new division and the SONY BMG Sales Enterprise team. Beyond "traditional" retail, Mr. Schoen will also be involved in Special Markets projects as well the digital download business. He will be based in New York.

Faye Perkins, in her role as Vice President of Marketing, SONY BMG Masterworks, will be responsible for marketing and promotion. She has over fifteen years of experience working with Sony Classical in New York and Toronto. Based in New York, she will also be the key liaison between the New York and Berlin international teams.

As Vice President of Classical Marketing & Catalogue Development, SONY BMG Masterworks, Michelle Errante will oversee all aspects of our planned extensive catalogue program as well as the production and product management of all SONY BMG Masterworks projects. Ms. Errante will also oversee the marketing of traditional classical releases.

SONY BMG Masterworks is home to many of the world's leading classical artists including Yo-Yo Ma, Joshua Bell, John Williams, Nikolaus Harnoncourt, Midori, Murray Perahia, Sequentia, The 5 Browns, Evgeny Kissin, Nikolaj Znaider and others, as well as a legendary catalogue of recordings that dates back more than a century.

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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