Atlantic increases U.S. royalty rate on 1948-1969 recordings.

NEW YORK--(BUSINESS WIRE)--March 5, 1997--

Reforms encompass artists across musical spectrum

The Atlantic Group has announced that, effective with sales reported as of March 1, 1997, all artists signed and/or recorded between 1948 (the year of the label's first releases) and 1969 will be increased to a basic U.S. royalty rate of 10% based upon the retail list price.

At the same time, the company announced that debit balances established before January 1, 1970 will not be charged against royalties earned by these artists on or after March 1, 1997. These adjustments are being made without regard to musical genre, encompassing recordings in the jazz, rock `n' roll, R&B, pop, and other fields.

In 1988, Atlantic was the first label to initiate royalty reform, recalculating back royalties for many of its early artists. That same year, the company marked its 40th Anniversary by contributing $1.5 million to establish and endow The Rhythm and Blues Foundation, a non-profit organization whose goal is to foster wider recognition of and financial support for the legendary rhythm and blues artists of the `40s, `50s and `60s.

In making the announcement, Ahmet Ertegun, co-founder of Atlantic Records and current Atlantic Group co-chairman/co-CEO, commented: "The artists who recorded for Atlantic in the first two decades of the label's existence not only formed the foundation of our company, but many of them have continued to exert an important and enduring influence on contemporary music. Historically, these artists have been paid royalties in accordance with the business norms and practices of the time in which they were signed, which in some cases goes back to the era of the 78 rpm record.

"In light of the dramatic changes which have taken place in the music business over the years, it is only fitting that these artists and their heirs be paid in accordance with today's standards. With Atlantic's 50th Anniversary approaching in 1998, we are very pleased to announce this important next step in our ongoing program to ensure that these artists are paid fairly for music which has remained vital and popular for so many years."

Atlantic Co-Chairman/Co-CEO Val Azzoli commented: "Every day, more and more musicians and music fans are discovering the work of the legendary artists whose ground-breaking work is the backbone of our industry. As each successive generation is introduced to this great music, the generation which created it should not only be acknowledged and honored for their creativity, but justly compensated for the timeless appeal which their music holds for music consumers everywhere."

CONTACT: Patti Conte, 212/707-2033

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Diane Gilmour, 212/707-2051

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Laura Gold, 310/205-7412