EMI Music and Warner Music To Sell Australian CD Plant to Summit Technology Australia Pty Ltd

10/25/04

EMI Music and Warner Music have reached agreement with Summit to sell their jointly owned CD manufacturing business in Sydney, Australia, to Summit.

Under the new agreement, EMI and Warner will transfer their manufacturing facility Digital Audio Technologies Australia (DATA) and its associated assets and employees to Summit with effect from 31 December 2004.

Simultaneously, EMI and Warner have entered into a long-term supply agreement with Summit for their local supply of CDs and DVDs.

Paul Robinson and Mark Narborough, chief operating officer of EMI Music Australia and director of finance and operations of Warner Music Australia respectively, said: "We are immensely proud of DATA and believe that this sale gives employees the best opportunity to continue to expand the company while allowing EMI and Warner to meet their own strategic goals."

During the past year, both EMI and Warner have outsourced their disc manufacturing facilities. Earlier this year, EMI Music transferred its Netherlands manufacturing assets to MediaMotion and closed its Illinois plant. In 2003, Warner Music Group outsourced its CD/DVD manufacturing business to Cinram International.

Lee Hong Thiam and Kong Chee Min, executive director and finance director respectively of SM Summit Holding Limited, said: "We are very pleased to acquire DATA, which augments and strengthens our presence in Asia-Pacific. We look forward to manufacturing for Warner and EMI in Australia over the coming years."

DATA was established in 1992 as a joint venture CD and cassette manufacturing plant by EMI and Warner Music Australia. Since its establishment the plant's capacity has expanded to approximately 30 million CD units per annum and it currently has over 100 staff. DATA is considered to be one of the pre-eminent CD replicators in Australia and has manufactured over 250 million CDs for the Australasian market since its establishment.

Summit Technology Australia Pty Ltd is a subsidiary of SM Summit Holdings Ltd which is a public company quoted on the Singapore Stock Exchange.

Source: Warner Music International