EMI Also First Major Record Company to Offer Music Through
Vodafone’s “Ring-Up-Tones” Service in Europe

Atlanta, March 24, 2004 – EMI Music’s David Munns today called upon the mobile and music industries to work cooperatively to expedite the availability of exciting consumer applications for mobile music today in the opening keynote address at MobileMusicCon 2004, part of the annual CTIA Wireless Conference.

Mr. Munns, who is EMI Music Vice Chairman worldwide and Chairman and CEO EMI Music North America, also announced that EMI would participate in a Verizon Wireless and Faith West Inc. expansion of the Verizon Wireless Get It Now® virtual software store. This new service makes available a catalogue of full fidelity hit singles from artists such as EMI’s Coldplay, Yellowcard, The Beach Boys, Pink Floyd and more in a compressed version of the original recording, including vocals.

“The combination of mobile and music helps forge an even closer link between fan and artist. And, it makes a phone not just a communications gadget, but a lifestyle device,” said Munns. “The kid who hung up a poster of his favourite band? He can take that band’s ring tone or ring tune with him. He can set up personalised ring backs when his girlfriend calls and send his mum custom birthday greetings. “

Munns described master recording ring tunes – samples of the artist’s actual recording with vocals – as the fledgling industry’s “killer app.” Citing research from mobile industry consulting group Consect, Inc., Munns remarked that sales of ring tones have grown with advances in file formats from monophonic to polyphonic to today’s new capability to offer master recording ring tunes. He demonstrated his point by playing the song “One Call Away,” a song from EMI’s Capitol Records’ artist Chingy, in all three formats.

Munns also pointed to other new content deals EMI has recently entered into to offer master recording ring tunes through major carriers around the world such as the company’s participation as the first major record company to provide music for the new Vodafone 'Ring-Up-Tones' service in Europe. Launched last week in Germany, this is a new mobile service where phone users can replace the ringing sound heard before a call is answered with a piece of music, known as a “ring back.” Munns cited success with ring backs in the format’s first commercial application in South Korea in 2002. Six months after it launched, the market for ring backs had surpassed ring tones, and by the end of 2002, approximately five million people had signed up for this service in Korea.

Mr. Munns mentioned that mobile music products and services have shown early signs of success in Asia and Europe for EMI Music, while mobile offerings were just beginning to launch in the US.

“Last year, in Asia and Europe, we saw the kind of revenues from mobile music sales that make me sit up and take notice,” said Munns. “Mobile content is driving a whole new business model and a viable new revenue stream. We expect relatively modest revenues (from mobile applications) for the first few years, but with a nice growth curve.”

Mr. Munns said that EMI had in the last six months seen “month over month growth in the sale of digital music in all categories, including sale of digital downloads, of mobile products and services, and in subscription services.”

At the conference, Mr. Munns also challenged those in the mobile hardware, wireless network, software and content communities to cooperate in order to overcome obstacles such as network bandwidth, compatibility, the definition of new format standards and rights clearances.

“It will take all sides: content, hardware, software, services – many of you in this room – for any of us to win,” said Munns. “We must work together to ensure that content, products and services are interoperable. Standards for media file formats must be appropriate for a range of devices. A lot of proprietary systems are being developed and no one wins that way. Fans don’t want to have to select content based on what hardware device or software player they have: they just want the music and they want to play it on all their devices.”

“Some of you out there might think that exclusivity and or proprietary systems will create competitive advantage, but I argue it does the opposite: it makes consumers mad!” said Munns. “Proprietary systems ignore what consumers want. Whatever competitive advantage you may think you are getting with an exclusive, proprietary system, it will be short lived. The consumer is smart. They will gravitate towards products and services that are seamless and open.”

MobileMusiCon is the premier forum for senior music and mobile industry executives to network, gain knowledge and find solutions for the successful development and execution of a long-term mobile business strategy. Bringing together over 400 music, carrier, handset and technology executives for a focused discussion of the challenges, opportunities, models for success and solutions for the successful development and growth of music-based mobile entertainment and services.

About EMI Music
EMI Music is the world's largest independent record company, operating in nearly 50 countries around the world. Its record labels include Angel, Astralwerks, Blue Note, Capitol, EMI, EMI Classics, Manhattan, Mute, Parlophone and Virgin.