Danny Goldberg and C&P Capital Team Up to Form Artemis Records; Exclusive Distribution Deal Signed With RED Distribution.

NEW YORK--(BUSINESS WIRE)--July 6, 1999--

Danny Goldberg and C&P Capital partners Michael Chambers and Patrick Panzarella have teamed up to launch New York-based independent Artemis Records. Artemis will be directed by President and CEO Danny Goldberg, an executive who has been CEO of three of the world's biggest record companies. An exclusive distribution deal has been signed with RED Distribution for all Artemis releases in the United States. Artists signings will be announced shortly.

Mr. Goldberg comments, "Much as I enjoyed running major labels, I feel really liberated creating an independent especially at this particular time. I am thrilled to be totally flexible regarding the Internet, un-bound by any corporate policies, or by the R.I.A.A. I look forward to Artemis being creative and pro-active with regard to the Internet music companies, and we expect to create Internet businesses of our own."

"Furthermore, the heart and soul of the record business has been built by independent companies--Elektra, Island, Motown, Interscope, A&M, Atlantic, and Virgin were all independent in their formative years. I think independent companies tend to think in terms of longer term asset development than do divisions of big corporations and thus we can have more in common with the agenda of many artists who are just as interested in their long term career as they are in how many albums they will sell in the next quarter. I am very excited that Michael Chambers and Pat Panzarella share this vision."

Ng Records, now part of the Artemis family, will continue to be run by Michael Chambers who has presided over the progressive indie for the last two years with operations managed by Executive VP Jason Wyner. Ng, whose roster includes the popular Orange 9mm and L.E.S. Stitches, will act as a breeding ground for musical tastes of Chambers. Artemis will be sharing promotion and PR duties with Ng which will act as Artemis' hard rock, underground, street oriented imprint.

"I'm thrilled to be combining both creative and business resources with Danny Goldberg, a record company luminary whose groundbreaking career has been an inspiration to all of us," comments Chambers, Co-Chairman of Artemis and President of Ng Records.

Currently, Artemis is beefing up its staff with music industry professionals including Executive Vice Presidents Daniel Glass, Adrian White and Michael Krumper. Daniel Glass is founder of Glassnote Records and former President of Universal Records and SBK. White joins Artemis following her role as Senior VP of Litigation at Universal Music Group and Senior VP of Business Affairs at Motown. Krumper was previously the Senior VP of Marketing at the Mercury Records Group. The company will be fully staffed with promotion, publicity and marketing personnel in the near future.

Comments RED Sr. VP/GM Ken Antonelli, "We were completely enthralled with Danny's independent spirit and felt that it fit perfectly with our plans for the future. Danny is going to make a major impact not only within RED Distribution, but within the independent business as a whole. We're thrilled to be working with him."

Danny Goldberg was most recently Chairman of the Mercury Records Group which in 1998 included Def Jam, Motown, Mercury Nashville, Deutsche Gramaphone, London Classics, Philips Classics, Verve and Mercury. During his reign, the Mercury Records Group held the No. 1 market share. Prior to this, Mr. Goldberg was the Chairman of Warner Bros. Records and President of Atlantic Records. In the late 1980's, he founded the management company Gold Mountain Entertainment with a roster that included Bonnie Raitt and Nirvana. It is expected that Goldberg and other members of the Artemis staff will be selectively involved with management in the future.

C&P Capital is an entertainment investment company whose ventures include Ng Records, a music publishing arm and an artist management division. Michael Chambers and Patrick Panzarella started the company in 1993 with first ventures including the productions of The Jim Rose Circus Sideshow, Larry Clark's Kids, Abel Ferrara's The Funeral and Mo Ogrodnik's Ripe. Besides Ng Records, C&P's other investment in the music industry was the start up Volcano Entertainment, which has acts Tool and Matthew Sweet. C&P sold Volcano to Jive/Zomba Entertainment in 1997.

Co-chairman Patrick Panzarella comments, "Putting the capital together for Artemis Records in equivalent to a basketball team getting Michael Jordan as a player. We are extremely excited about working with Danny."