EMI Recorded Music, North America and Nettwerk Records of Canada Announce the Formation of Joint Venture Nettwerk America.

LOS ANGELES--(ENTERTAINMENT WIRE)--Jan. 8, 1999--EMI Recorded Music, North America and Nettwerk Records of Canada have agreed to expand significantly upon their current North American distribution relationship by creating a new joint venture company, "Nettwerk America," for the purpose of marketing records in the United States.

The arrangement is for an extended term and is commencing immediately. Nettwerk Canada's Terry McBride, Ric Arboit and Mark Jowett will oversee operations of the new company, along with U.S.-based General Manager, Marivi Magsino. Nettwerk will expand its current offices in both New York and Los Angeles.

Nettwerk has existed successfully in the United States for three years developing, promoting and marketing artists such as Tara MacLean, Delerium, Autour de Lucie and the Plastic Compilation Series.

Under the new joint venture arrangement, "Nettwerk America" will continue to market in the United States all existing and future Nettwerk Canada recordings, plus selected artists signed to Capitol U.S., EMI Music Canada and EMI affiliates around the world, through EMI Music Distribution, EMI's U.S. distribution arm.

The arrangement also provides that artists signed to Nettwerk Canada can enter into exclusive recording agreements with Capitol Records and that artists marketed by "Nettwerk America" can be transferred to the Capitol label.

In addition, as part of this arrangement, Nettwerk Canada's current Canadian distribution pact with EMI Music Canada will be extended to be co-terminous with the joint venture. Under this pact, EMI has recently distributed in Canada such releases as Sarah McLachlan (10 times Platinum) and the acclaimed Lilith Fair album (Platinum).

Finally, as part of this transaction, EMI's worldwide affiliates outside of North America will distribute new Nettwerk Canada recordings in their respective territories.

Roy Lott, Deputy President - EMI Recorded Music, North America and President - Capitol Records, commented: "Nettwerk Records is an incredible source of talent and music, and we are thrilled to be joining forces with them in this new arrangement. I've known Terry, Ric and Mark for a long time and I consider them and their team among the best in the industry.

"They share my commitment to long-term artist development resulting in career artists with significant catalog sales. They will provide EMI and Capitol with an additional channel for developing new artists here in the U.S. and will provide Capitol in the U.S. and EMI throughout the world with future superstars signed to Nettwerk Canada."

McBride, CEO, Nettwerk, added: "We look forward to the opportunity to build `Nettwerk America' upon the same vision and principles that have established Nettwerk in Canada as an innovative purveyor of music."

Deane Cameron, president, EMI Music Canada, said: "EMI Music Canada is proud of its long association with the Nettwerk organization. Since 1986, we have shared many artist projects together, both in Canada and internationally. We look forward to this continued future together."

Nettwerk's current roster includes Delerium, Skinny Puppy, Autour de Lucie, Sully, Plastic Vol. 1 & 2, Mystery Machine, Weed, The Wild Strawberries and releases from soundtrack label Unforscene Music, as well as Sarah McLachlan who is distributed by EMI in Canada and on Arista Records in the rest of the world. Their related management company represents Barenaked Ladies and Moist, among others.

EMI Recorded Music, North America is a unit of London-based EMI Group plc, one of the world's leading music companies.

Capitol Records' current roster includes Beastie Boys, Foo Fighters, Meredith Brooks, Radiohead, Everclear, Bonnie Raitt and Paul McCartney. Capitol has been the home to some of the most esteemed names in the history of music, including Nat King Cole, Frank Sinatra, the Beatles, the Beach Boys and Tina Turner.

EMI Music Canada's current roster includes Anne Murray, Moist, Tom Cochrane, The Tea Party, The Rankins, Econoline Crush, Sky, Leahy and The Watchmen.