Antra Music Group Announces Joint Venture Agreement and Expanded Relationship With Artemis Records.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Jan. 18, 2000

--Artemis To Commit Financial, Promotional and Distribution Resources for the Worldwide Marketing, and Promotion of Original Recordings Produced Under the ANTRA Label--

ANTRA Music Group (OTC BB: RECD) today announced that it has entered into a new strategic joint venture agreement with Artemis Records, thus formalizing and expanding the relationship between the two companies that was established in September, 1999. Under the terms of the joint venture, Artemis Records, will incur all costs and will further capitalize on its prominence in the marketing, promotion and distribution of a minimum of three (3) original recordings annually under the ANTRA Music Label. The Company estimates that it will reduce promotion, marketing and distribution costs of approximately $1 million per recording, eliminating nearly $3 million in expenses per year.

Artemis Records are distributed in the U.S. by RED, and throughout the rest of the world, by Sony Entertainment. Until recently, RED has been a division of Sony, which announced that it will be selling 80% of the distributor to Edel Records, an independent European music company.

Additionally, in a separate transaction, Artemis Records will pay ANTRA Music an advance Royalty payment fee of $800,000, for an expanded distribution arrangement, which will encompass a minimum of four (4) additional original music releases per year. Artemis will provide additional funding for services and promotional costs and will be responsible for worldwide marketing. This agreement covers an initial period of three (3) years, with an option for two more.

These agreements link ANTRA, which is among the music industry's fastest growing record labels, with Artemis Records, which is one of the music industry's most influential distribution networks.

C.E.O. and founder of ANTRA Music Group Joseph Marrone commented, "I am excited to have Artemis Records as a long-term partner in our growth. For ANTRA this agreement represents a major milestone in our Company's history. The joint venture immediately places ANTRA at a higher level of recognition as an important creative force in the music entertainment industry. Furthermore having the considerable resources and expertise of Artemis as our marketing and distribution partner will significantly accelerate our dramatic growth. Under this venture, the initial releases will be the original soundtrack to the full-length motion picture, "Once In The Life," representing the directorial debut of Academy Award nominated actor Laurence Fishburne and featuring Gregory Hines. The lead single will be ANTRA/Artemis recording group the Spooks's "Things I've Seen" and will be followed this Spring with their highly anticipated debut album. These releases will follow our successful flagship recording "THA STREETZ," by KURUPT, which debuted at number 5 on the Billboard R & B charts. Sales of this release are continuing on target, which I expect to reach Gold Record status shortly. I am highly optimistic about ANTRA's prospects for growth and anticipate a record-setting year during 2000, and beyond."

Danny Goldberg, President of Artemis Records commented, "ANTRA Music has quickly become a magnet for some of the most exciting pop and urban music artists and properties. ANTRA is closely attuned to the trends in music and pop culture. I value our relationship with ANTRA as a huge addition to our company."

About ANTRA Music:

The ANTRA Music Group is a rapidly growing music Company specializing in urban music. The Company operates three divisions; the production and recording of original music under the ANTRA label, music publishing, and the sale of proprietary recorded music and related items through the Internet, in conjunction with a web site currently under construction.

About Artemis Records

Artemis Records is directed by President and C.E.O. Danny Goldberg, an executive who has been the C.E.O. of some of the world's biggest record companies that include both Mercury Records and Warner Bros. Records. Since its inception, Artemis has assembled a team of well known music industry personnel to complement its rapid growth.

Disclaimer

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may differ materially from actual future events or results. The future performance of the Company involves risks and uncertainties that could cause actual results to differ markedly from those anticipated by such forward-looking statements. Such risks include but are not limited to the following: a limited operating history for the Company; potential fluctuations in operating results; competition; pricing pressure; dependence on third-party suppliers of hardware and software; shortage of modems; dependence on telecommunications carriers; management of growth; limited market; a need for and risks of international expansion; the existence of a new and uncertain market; customer retention issues; rapid technological change, security risks; the risk of system failure; formal licensing and joint marketing agreements; patents and proprietary rights; infringement claims; changes in government regulation; risks associated with providing content including potential liability; dependence on key personnel and need to hire additional qualified personnel; uncertainty of currency exchange rates; need for additional capital; and enforceability of civil liabilities.