investor relations

Warner Music Group's East West Records Signs Exclusive, Multi-Year Agreement With Lizard King Records

06/28/05
UK-Based Lizard King Will Join Forces With Warner Music Group's Rock "Incubator"

NEW YORK, NY, Jun 28, 2005 -- East West Records, one of Warner Music Group's (NYSE: WMG) newest label groups, announced today an exclusive, multi-year deal with London and New York-based Lizard King Records.

Founded in 2002 and chaired by Martin Heath, Lizard King is a full-service record company established to reflect the growing musical connection between the U.S. and UK. The label has produced records by garage rock outfits The Go, Clear Static and the multi-platinum selling band, The Killers, which was Lizard King's second signing.

Under the completed agreement, East West, a label designed to support emerging rock artists, will provide full promotion, marketing, distribution and sales services to future Lizard King releases in the U.S. East West affiliated labels are distributed by the Alternative Distribution Alliance, WMG's distributor of independent record labels. Outside of the U.S., Lizard King will continue to be distributed by its network of licensees and distributors.

"I've seen firsthand Martin's talent and passion as an A&R executive when we worked together to sign The Killers at Island Records," said Lyor Cohen, Chairman and CEO, U.S. Recorded Music, Warner Music Group. "Knowing how aggressive and dedicated Martin can be, I'm much happier to be working with him than having to compete against him. Given Warner Music Group's efforts to work more closely with independent labels, I'm looking forward to another successful relationship with Martin and Lizard King Records."

"This is an exciting partnership between East West and Lizard King," said Fred Feldman, President, East West Records. "Martin and his team have extensive experience in international development and a great track record when it comes to discovering and nurturing emerging artists, and I look forward to working together to produce and distribute some great music."

"With the backing of East West and Warner Music Group, Lizard King now has a major partner to take artists from the Barfly to the Hollywood Bowl with no artistic compromise and first-rate marketing and promotion," said Martin Heath of Lizard King. "New industry challenges require new approaches to handling artists' careers. We see this as combining the best of the Indies' artist development skills and access to WMG's scale and systems. Our access to the crucial UK market, as we have shown with The Killers success, gives us, in partnership with WMG, a key advantage in attracting the best acts. To provide the best service for our artists, Lizard King needed a strong and flexible U.S. partner. We found one in East West."

The agreement between East West and Lizard King is effective immediately and includes artists currently signed by Lizard King, such as The Greater Good. Lizard King will remain an independently owned company.

About East West

East West, one of Warner Music Group's newest label groups, provides full promotion, marketing and sales support to rock artists. East West affiliated labels, including Volcom Entertainment, 111 Records, Better Looking Records and Triple Crown Records, are distributed by the Alternative Distribution Alliance, WMG's leading distributor of independent record labels. For more information about East West, visit our website at www.eastwestrock.com.

About Lizard King Records/Martin Heath

Lizard King Records is an independent, full-service record company based in London and New York. Lizard King's philosophy reflects the growing connection between the U.S. and UK music communities. It is transatlantic in outlook. Founded in 2002, the label has produced records by The Go, Donderevo, Clear Static and The Killers (Lizard King's second release).

Martin Heath started Rhythm King, the first fully electronic record label, in 1986 with Daniel Miller of Mute Records. In just four years the label achieved more than 40 top ten singles. In 1989, Heath established the software company Renegade Software and was awarded the Sega Game of the Year. Heath joined the board of BMG UK in 1995 after the company bought Rhythm King. The same year, he became the Managing Director of Arista Records in the UK.