• EMI and Bertelsmann End Merger Discussions,EMI Trading Update
• Industry Veteran Jack Satter Partners with Beyond Music as Consultant And Mark Gorlick Appointed Head of Promotion
• Record Company Asks Rudy to Approve Painted 'Drag' Divas!
• Universal Records Set to Release 'Baby Boy' Soundtrack For Director John Singleton's Forthcoming Film
• Warren G, 'The Regulator,' Returns as the Multi-Platinum Rapper Signs With Universal Records

EMI and Bertelsmann End Merger Discussions,EMI Trading Update

LONDON May 1, 2001--EMI Group plc ("EMI") today announces that it has agreed with Bertelsmann AG to end discussions about a possible merger of its music businesses with Bertelsmann Music Group ("BMG").

Over the past five months, the two companies have conducted a rigorous assessment of alternative structures and antitrust remedies. It has not proved possible, in the present regulatory environment, to construct a combination which both creates significant value for shareholders and also has a high likelihood of approval from antitrust authorities in Europe and the USA. Both companies feel that it is not in the interests of shareholders, artists or employees to allow the uncertainty to continue.

EMI's costs for the work to date are not material and there will be no further provision for deal costs beyond that made at the half year.

EMI's trading results for the 12 months ended 31 March 2001 will be presented in detail on 22 May. However, the company is pleased to provide an early indication of the outcome for the year. Based on unaudited results, group sales improved by 12% to almost (pound)2.7 billion and group operating profit (excluding associates and HMV) increased by 14% to approximately (pound)330 million. Adjusted profit before tax increased by 6% to approximately 260 million.

EMI Group Chairman, Eric Nicoli, said:

"After exhaustive analysis and discussion, we have been unable to find a deal with Bertelsmann which works both for shareholders and for the regulators.

"We are, nevertheless, excited about EMI's future. We are the world's third largest record company and the largest music publisher and we will continue to take bold steps to build our business. EMI has good momentum and the recent signing of superstar Mariah Carey, the appointment of Andy Slater as CEO of Capitol Records and the creation of the MusicNet partnership, will all contribute to the next phase of our development.

"I am delighted that we have produced very good results and further strengthened our business despite the inevitable distractions over the period of merger discussions.

"Finally, I want to say that our dealings with Bertelsmann have been constructive and friendly throughout. A very positive relationship has developed between our two companies and I wish the Bertelsmann team well for the future."

Contact: EMI Group, London, Amanda Conroy, 020 7667 3216

Brunswick Group, London, Patrick Handley, 020 7396 5395

Dan Klores Communications, New York

Matthew Traub, 212/981-5207

Susan Makarichev, 212/981-5243

Industry Veteran Jack Satter Partners with Beyond Music as Consultant And Mark Gorlick Appointed Head of Promotion

LOS ANGELES- April 30, 2001--Allen Kovac, chairman and chief executive officer of Beyond Music, announced the appointment of Mark Gorlick as Head of Promotion.

Gorlick takes over the reins of the staff assembled by industry veteran Jack Satter.

Sixteen months ago, Satter took on the assignment of restructuring the Beyond Music promotion staff from his base in Minneapolis, giving the company the opportunity to search patiently until the right Los Angeles-based executive became available to fill the Head of Promotion position.

While working with Beyond Music, Satter has successfully guided campaigns for such artists as Sammy Hagar, bringing in two top five rock tracks, and Lucy Pearl, with a top 10 rhythm-crossover hit and a number two urban track.

Most recently, Satter engineered the success of the Go-Go's first single in 17 years "Unforgiven," at Modern Adult, with Top 40 impacting later this month. "God Bless The Go-Go's" will be in stores May 15. Satter has completed the initial assignment he came in to do and will continue on as a consultant to Beyond Music and the Left Bank Organization, with such artists as the Go-Go's, the Bee Gee's and Better Than Ezra.

"Working at Beyond Music has been a rewarding experience in my career," said Satter. "I am eager to take on my new assignment as a consultant and continue being an essential part of these projects."

"Jack's relationships in the industry are invaluable and his hard work in positioning an independent label like Beyond Music as a major player in the business has been tremendous," added Kovac. "I credit much of the success of this label to Jack's tenacity in getting our records played and thank him for laying the groundwork for Mark to come aboard and continue exposing our acts at radio.

"Mark Gorlick is the type of executive we have been looking for," said Kovac. "Mark is accomplished with branding artists and taking start up companies to a new level."

At Dreamworks, Gorlick guided the campaigns of such artists as Powerman 5000, Papa Roach, Lifehouse and Nelly Furtado, to name a few. Previous to his success at Dreamworks, Gorlick was the senior vice president of Promotion at MCA.

"I am delighted to be working with Allen and the Beyond Music family," added Gorlick. "Allen is an innovator and marketing strategist, and I welcome the opportunity to grow with such an amazing company."

Gorlick continued, "Having been part of two other highly successful start-ups, I am aware of the challenges and opportunities that face a major-independent record label. I look forward to working with colleagues that I've been acquainted and associated with throughout my career. The decision to come over to Beyond Music is both comfortable and rewarding."

Gorlick's initial focus will be the Go-Go's, Better Than Ezra, Colony and newcomer, Yoli.

Beyond Music and The Left Bank Organization are operating companies designed to market, promote, publicize and distribute entertainment properties on a worldwide basis.

Contact Beyond Music Mindi Sue Meyer, 310/385-4815 mindim@lbank.com

Record Company Asks Rudy to Approve Painted 'Drag' Divas!

NEW YORK, May 1  If you thought New York's painted cows were the ultimate in street art, get ready for the painted "Dancing Queen" Divas! Medalist Entertainment is petitioning the City of New York for permission to erect life-size painted drag queens on Manhattan street corners to promote the first ever drag tribute record, "Dancing Queens." The record is being launched June 19th to coincide with Gay Pride celebrations.

"Dancing Queens" is a double CD collection of 26 classic "drag diva" songs including such classic hits as "It's Raining Men," "I'm Every Woman," "Over The Rainbow," "I Will Survive" and "So Many Men, So Little Time." The cover of the CD shows award-winning New York drag queen Angel Sheridan in full make up.

Sheridan is one of the models for the life-size "drag" statues, which would be placed on street corners in key city locations. Medalist Entertainment believes the statues are fun and are part of the unique cultural diversity of New York.

"This CD is all about having fun. Drag queens are part of the melting pot of culture that is New York and we wanted to help draw attention to their art. Everyone still talks about the painted cows, so we want to take them to the next level and have painted drag divas," said Medalist Entertainment's General Manager David Brinker.

His sentiments are shared by Angel Sheridan, who says the image of hundreds of life-size painted drag queens on city street corners would certainly bring a smile to the faces of the people of Manhattan.

"Drag is all about having fun and making people feel good and this idea will certainly make people stop and take a second look."

Medalist Entertainment hopes the application to the city won't be referred to Mayor Giuliani's newly formed "decency panel."

"While this might be seen in some areas as a controversial proposal, there is certainly nothing 'indecent' about the art of drag. Besides, I believe Mayor Giuliani did himself once appear in drag as a Rockette during a City Hall roast," said Brinker.

Universal Records Set to Release 'Baby Boy' Soundtrack For Director John Singleton's Forthcoming Film

Rapper Snoop Dogg and R&B Soulster Tyrese Featured on Lead Single 'Just A Baby Boy'

Singleton Working Closely With Record Label on Soundtrack

NEW YORK, April 30  Universal Records is preparing to release the soundtrack for director John Singleton's Columbia Pictures feature film, "Baby Boy", a coming-of-age drama starring Ving Rhames, Tyrese and Snoop Dogg on June 12th, the disc will be the first hip-hop/R&B soundtrack released by Universal Records. "Baby Boy" is scheduled to open in theaters across the country on June 29th. All of the songs from the "Baby Boy" soundtrack will appear in the film. Singleton, who also serves as executive producer of the soundtrack, is working closely with the label in putting together the soundtrack.

The "Baby Boy" soundtrack's lead track, "Just A Baby Boy" is a funk-infused, R&B/hip-hop track featuring rapper Snoop Dogg featuring R&B soulster Tyrese and newcomer Mr. Tan. "Just A Baby Boy" was produced by Battle Cat (Brian McKnight, Faith Evans, Lucy Pearl). The label has just completed shooting the video for the track, and will ship the record to urban/crossover radio stations early May.

In addition to collaborating on the soundtrack's lead single, Tyrese and Snoop Dogg are also set to take on lead and supporting roles respectively in Baby Boy. Ten years after the release of the seminal "Boyz N the Hood", acclaimed director John Singleton returns to the same inner-city L.A. neighborhood for the story of a misguided 20-year-old African American man (Tyrese), a 'baby boy' facing the commitments of real life.

Warren G, 'The Regulator,' Returns as the Multi-Platinum Rapper Signs With Universal Records

Rapper/Producer to Work With Dr. Dre, Eminem, Snoop Dogg, George Clinton And Others on his Universal Debut

NEW YORK, April 30  Universal Records has signed multi-platinum rapper Warren G to a new exclusive recording agreement. The Los Angeles-based artist, who first hit the scene in 1994 with the release of his debut album Regulate and its chart-topping title track, says his Universal debut will make a return to the melodic, West Coast production style (which he tagged "G-Funk") that first brought him success. A bevy of talent -- including legendary funkster George Clinton, Warren's half-brother Dr. Dre, Snoop Dogg, Eminem, Nate Dogg, Butch Cassidy, Daz and Kurupt -- is lined up to guest on his Universal debut. While the rapper will produce several of the album tracks, he is also enlisting Grammy-nominated producers Scott Storch (Dr. Dre, Eminem) and Jason "Jay E" Epperson (Nelly), Grammy-winning artist/producer Dr. Dre (Snoop Dogg, Eminem) and Battle Cat (Snoop Dogg, Mack 10, Lucy Pearl) to contribute to the disc.

Fans are familiar with Warren G not only as a chart-topping rapper, but also as an influential producer and artist who helped shape and define West Coast hip-hop. Warren is credited with introducing his long-time friend Snoop Dogg to super-producer/rapper Dr. Dre, and with helping Dre form his seminal West Coast talent and production posse, The Dogg Pound. An accomplished producer himself, Warren was the creative genius behind Mr. Grimm's mega-hit single "Indo Smoke," which appeared on the Poetic Justice soundtrack. He also produced numerous 2Pac tracks including the hit "Definition Of A Thug" from the Above The Rim soundtrack.

As an internationally-acclaimed and Grammy nominated recording artist, Warren G's discography includes three successful albums (1994's 4X platinum Regulate, 1997's 2x Platinum Take A Look Over Your Shoulder, and 1999's Gold I Want It All). He has also made guest appearances on Dr. Dre's definitive disc The Chronic , Snoop Dogg's classic Doggy Style, and numerous soundtrack singles.

Warren G has spent the last two years expanding his career and being active in and around the Los Angeles Community. He has appeared in sitcom roles on TV's The Parenthood and Clueless, and he has stayed busy supporting community endeavors such as a proposed teen center in Long Beach, CA, and giving free performances and making guest appearances at community events