Sony to Purchase Bertelsmann's 50-Percent Stake in Sony BMG

Music Company to Become Wholly Owned Subsidiary of Sony Corporation of America

NEW YORK, Aug. 5 /PRNewswire/ -- The international media and entertainment
companies Sony Corporation and Bertelsmann AG today announced that Sony has
agreed to acquire Bertelsmann's 50 percent stake in Sony BMG. The music
company, to be called Sony Music Entertainment Inc. (SMEI), will become a
wholly owned subsidiary of Sony Corporation of America. Sony and Bertelsmann
AG originally created the Sony BMG joint venture in August 2004.
"Music has been a vital and vibrant part of Sony's culture for over twenty
years. This acquisition will allow us to achieve a deeper and more robust
integration between the wide-ranging global assets of the music company and
Sony's products, operating companies and affiliates. It enables us to offer a
total entertainment experience to consumers," said Sir Howard Stringer,
Chairman and CEO, Sony Corporation. "Over the past four years, Sony BMG has
undertaken a very successful restructuring, streamlined operations and
developed innovative digital partnerships that ensure it will continue to be a
leader in the creation and distribution of music worldwide. It is an
organization rich in talent, ideas and enthusiasm, and is a strong fit with
our overall business strategy."
"After a careful and thorough review, we made the strategic decision to
sell our investment in this joint venture to Sony, a step that we believe will
benefit the stakeholders of both our companies," stated Hartmut Ostrowski,
Chairman and CEO of Bertelsmann AG. "This move is consistent with our new
growth strategy and will enable us to focus on our defined growth areas. Sony
has been an excellent partner, and they are the right company to take this
business to the next step and ensure that it realizes its full value and
potential. We look forward to witnessing Sony Music Entertainment's exciting
future under Sony's ownership."
Once the transaction is completed, Sony Music Entertainment Inc. will be
comprised of premier music labels such as: Arista Records, Columbia Records,
Epic Records, J Records, Jive Records, RCA Records and Zomba. Key recording
artists will include Celine Dion, Alicia Keys, Yo-Yo Ma, Bruce Springsteen,
Justin Timberlake, Usher and Jay Chou.
As part of the transaction, the parties have also agreed to continue to
share the company's manufacturing and distribution requirements between Sony's
manufacturing subsidiary, Sony DADC, and Bertelsmann's services company,
Arvato Digital Services GmbH ("Arvato"), by extending the agreements with
Arvato for additional terms of up to six years. In addition, Bertelsmann will
be taking over selected European music catalog assets from Sony BMG.
Consummation of the transaction remains subject to a number of conditions,
including approvals of regulatory authorities in certain jurisdictions.
About Bertelsmann AG
Bertelsmann is an international media company encompassing television (RTL
Group), book publishing (Random House), magazine publishing (Gruner + Jahr),
music (BMG), media services (Arvato), and media clubs (Direct Group) in more
than 50 countries. Bertelsmann's claim is to inspire people around the world
with first-class media and communications offerings - entertainment,
information and services - and occupy leading positions in its respective
markets. The foundation of Bertelsmann's success is a corporate culture based
on partnership, entrepreneurial spirit, creativity, and corporate
responsibility. The company strives to bring creative new ideas to market and
create value. www.bertelsmann.com
About Sony Corporation
Sony Corporation is a leading manufacturer of audio, video, game,
communications, key device and information technology products for the
consumer and professional markets. With its music, pictures, computer
entertainment and on-line businesses, Sony is uniquely positioned to be the
leading electronics and entertainment company in the world. Sony recorded
consolidated annual sales of approximately $88 billion for the fiscal year
ended March 31, 2008. Sony Global Web Site: www.sony.net
For further questions, please contact:

Bertelsmann AG

Andreas Grafemeyer
Senior Vice President Media Relations
Phone: +49 - 52 41 / 80 24 66
andreas.grafemeyer@bertelsmann.de

Tobias Riepe
Vice President Media Relations
Phone: +49 - 52 41 / 80 77 69
tobias.riepe@bertelsmann.de

Bertelsmann AG/New York

Kelly Sullivan
Senior Managing Director
Joele Frank, Wilkinson Brimmer Katcher
Phone: +1 - 212 / 895 - 86 59
ksullivan@joelefrank.com

Bertelsmann AG/UK

Angus Maitland
Executive Chairman
Maitland
Phone: +44 - 20 / 73 79 51 51
amaitland@maitland.co.uk

Sony/New York

Lisa Gephardt
Phone: +1 - 212 / 833 - 68 26
Lisa_gephardt@sonyusa.com

Mack Araki
Phone: +1 - 212 / 833 - 68 21
Mack_araki@sonyusa.com

SOURCE Bertelsmann Media Worldwide

Andreas Grafemeyer, Senior Vice President Media Relations, +49-52 41 / 80 24
66, andreas.grafemeyer@bertelsmann.de, or Tobias Riepe, Vice President Media
Relations, +49-52 41 / 80 77 69, tobias.riepe@bertelsmann.de, both of
Bertelsmann AG; or Kelly Sullivan, Senior Managing Director of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-895-8659, ksullivan@joelefrank.com, for
Bertelsmann AG/New York; or Angus Maitland, Executive Chairman of Maitland,
+44-20 / 73 79 51 51, amaitland@maitland.co.uk, for Bertelsmann AG/UK; or Lisa
Gephardt, +1-212-833-6826, Lisa_gephardt@sonyusa.com, or Mack Araki,
+1-212-833-6821, Mack_araki@sonyusa.com, both of Sony/New York