Warner Music Group Announces Closing Of $700 Million Senior Notes Offering By Its Parent, WMG Holdings Corp.

12/23/04

Warner Music Group (WMG) today announced that its parent company, WMG Holdings Corp., has issued approximately $700 million in WMG Holdings debt, consisting of $250 million of Floating Rate Senior Notes due 2011, $250 million in gross proceeds of 9.5% Senior Discount Notes due 2014 (with aggregate principal amount at maturity of $396.8 million) and $200 million of Floating Rate Senior PIK Notes due 2014.

The proceeds from the issuance of the notes will be used to fund a return of approximately $680 million from WMG Holdings to its shareholders and the shareholders of its parent corporation, WMG Parent Corp., through a combination of dividends on its common and preferred stock and repurchases of its common and preferred stock.

The notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.