ATLANTIC RECORDS GURU HAILED AS INDUSTRY ICON.

Byline: Fred Shuster Music Writer

Atlantic Records founding chairman Ahmet Ertegun knows a bit about music. He signed the Rolling Stones, Led Zeppelin, Bobby Darin and Cream, helped Aretha Franklin become the Queen of Soul, and wrote and produced Ray Charles' first gold record.

On Sunday, it was the industry's turn to sing his praises. The dapper 81- year-old hit man received the record academy's first President's Merit Award at the Salute To Industry Icons event in honor of Ertegun's contributions to music. During the ceremony the award was acknowledged by Rob Thomas of Matchbox Twenty, and Ertegun spoke a quick thank you to the audience. The invitation-only fete, attended by label chiefs, producers and leading musicians, took place at the L.A. Convention Center, next to Staples Center, site of the Grammy telecast.

The son of Turkey's ambassador to Washington who as a teenager began adding his own lyrics to Duke Ellington compositions for kicks, Ertegun launched Atlantic in 1947 with $10,000 borrowed from the family dentist in order to issue beloved jazz records. The company become an international powerhouse and industry leader in the r&b and rock eras and continues to thrive today.

Elegantly dressed, well-spoken and erudite, Ertegun's persona was portrayed in two recent movies, the Oscar-nominated ``Ray'' (played by Curtis Armstrong) and the Darin biopic ``Beyond the Sea'' (played by Tayfun Bademsoy). The record tycoon had a major effect on both Charles and Darin's careers.

Calling Ertegun ``a true visionary whose life's work has had a profound impact on the musical landscape of our culture and around the world,'' Neil Portnow, president of the record academy, paid homage to ``this extraordinary man ... one of the most respected executives in entertainment.''

Ertegun melds business savvy with creative passion. He not only signed acts but produced and composed as well, penning Charles' signature hit ``Mess Around'' in the early '50s (credited to A. Nugetre - Ertegun spelled backward).

Atlantic's distinctive red-and-black label was affixed to history-making vinyl from the likes of John Coltrane, Professor Longhair, the Coasters, King Curtis, Otis Redding, Ornette Coleman, the Drifters, Charles Mingus, Freddie King, Buffalo Springfield and Crosby, Stills, Nash & Young. Contemporary CD moneymakers include Jewel, Phil Collins, Tori Amos, Kid Rock, Sean Paul, Lil' Kim, and Matchbox Twenty.

``As far as we're concerned, from the moment we sign an artist, they're already a star,'' Ertegun has said.