EMI and Virtue enter into a strategic webcast agreement

LONDON January 30, 2001 - EMI Recorded Music announced today that it has entered into a strategic agreement with virtuebroadcasting.com, one of Europe's most established streaming and internet broadcast companies.

The agreement secures virtuebroadcasting's position as a preferred provider of webcasting services for EMI's UK labels and a recommended provider of webcasting services in other countries of operation. It gives EMI access to the range of streaming, hosting, digitisation and internet production services which virtuebroadcasting provides. As part of the agreement EMI is acquiring a small stake in virtuebroadcasting.

"virtuebroadcasting's expertise in webcasting and streaming media will be key to the success of marketing EMI's many artists on line," said Jay Samit, senior vice president, New Media, EMI Recorded Music. "We are very pleased to be forming a strategic relationship with a company which has built up such a track record of success in a relatively short period of time."

Both parties will continue to build upon the significant success of past internet broadcasts such as Paul McCartney, Blur, Richard Ashcroft, Mel C and the Fun Lovin' Criminals, as well as video releases for artists including Robbie Williams and Kylie Minogue. The first internet broadcast following this agreement will be the performance in London on 4 February by Parlophone artist Neil Finn which will be subsequently broadcast online on Finn's official site at www.nilfun.net and at www.virtuetv.com and in conjunction with media partners.

As part of the agreement, virtuebroadcasting will also be granted EMI's first European internet radio licence and will work with EMI to generate new exclusive web programming, including the promotion of catalogue material as well as new releases.

"EMI's relationship with virtue demonstrates the value record companies are placing on broadcast quality, innovative new media solutions for the promotion, marketing and sale of music to as broad a range of consumers as possible," said Nick English, co-founder and President of virtuebroadcasting. "Being a full-service streaming broadband network, customer satisfaction is the priority and to be able to deliver this to a company with an international presence such as EMI positions us as a European industry leader. We are very pleased to be so involved in EMI's online distribution strategy."

About EMI
EMI Recorded Music, the third-largest music company in the world, is an international music company with presence in nearly 70 countries. EMI Recorded Music includes important local and international artists, including some of the biggest names in the recorded music industry. EMI has artists in every leading music genre, including pop, rock, jazz, classical, Latin, Christian, country, rap/urban and dance. The world-famous labels include Capitol, Angel, Blue Note, EMI, Priority and Virgin. Its current roster includes approximately 1,500 artists, and it releases over 1,000 albums each year.

About virtuebroadcasting
virtuebroadcasting was set-up in 1998 to meet the growing demand for technical expertise in the application of digital visual and audio technology. The Company's head office is in London with subsidiaries in Canada, Australia and Mexico, and is already established as a European and global leader in streamed content distribution. The Company is a market leader for live and on-demand event broadcasting and hosting, with an enviable array of Corporate and Media blue-chip clients including Granada Media and News International. Past entertainment broadcasts include Madonna from The Brixton Academy in London, Paul McCartney at The Cavern in Liverpool, Jean Michel Jarre from the Pyramids in Egypt, Radiohead performing in Toronto and the internet release of the Robbie Williams video "Rock DJ".

For further information contact:

Amanda Conroy, tel: 020 7667 3216
Richard O'Brien, tel: 020 7667 3254
at EMI Group www.emigroup.com

Mischa Gaudin
virtuebroadcasting 44.20.7323 6850
[email protected]