DVD MUSIC VIDEO ON HIGH NOTE

Fast Becoming Industry's Hottest New Entertainment Format

LOS ANGELES - March 16, 2000 - In keeping with the unprecedented momentum of DVD-Video, shipments of DVD music video programs sky-rocketed by more than 400 percent in 1999 according to recent data from the Recording Industry Association of America (RIAA). As previously predicted by the DVD Entertainment Group, DVD music video is proving to be an increasingly vital part of the music industry.

With nearly six million DVD-Video players in homes in North America according to Consumer Electronics Association (CEA), DVD-Video is reaching new heights by tapping into the creativity the format allows. Approximately 550 DVD music video titles are available, bringing fans closer to their favorite performances through photo galleries, behind-the-scenes documentaries, biographies and links to the artists' official web sites for frequently updated news and tour dates. DVD-Video also provides superior audio quality and surround sound allowing fans to experience the feeling and sound of a live show.

"It was slightly more than two years ago that the DVD Entertainment Group predicted the potential for explosive growth for DVD music video," said Emiel N. Petrone, executive vice president, Philips Entertainment Group, Worldwide and chairman, DVD Entertainment Group. "As underscored by the RIAA's statistics, DVD music video has become the industry's hottest new entertainment format."

DVD music video has become an important new growth category for retailers.

"DVD continues to drive the expansion and growth of the Best Buy prerecorded movie business. The results from our just completed fiscal year end showed DVD software sales up more than 125 percent with DVD dollar sales surpassing VHS for the first time," said Joe Pagano, vice president, music & movies, Best Buy. "DVD music video sales were also up with 'Classic Rockers' like Fleetwood Mac, Eagles and Metallica leading the way. We expect that share to increase as the format continues to migrate into more family rooms with anticipated sales of the groups like NYSNC and Backstreet Boys."

According to SoundScan, "The Eagles: Hell Freezes Over" (Image Entertainment) is the best selling DVD music video since the format's launch and so far this year. Selling more than 300,000 units since its release in February 1999, this title led the way for this genre of DVD-Videos, providing an interactive menu and web connection, a 5.1 multichannel soundtrack, and the bonus track "Seven Bridges Road."

In response to the broadening popularity of DVD-Video, programs are now available across popular genres, from classical to rock, hip-hop to country. Some of the top selling titles range from live performances, including "Fleetwood Mac: The Dance" (Warner/Reprise), "James Taylor: Live at Beacon Theatre" (Columbia Music Video), and "Sarah MacLachlan: Mirror Ball" (Arista) including the Grammy winning track "I Will Remember You," to full musical documentaries such as "Radiohead: Meeting People is Easy" (EMI Recorded Music) and Oscar-nominated "Buena Vista Social Club" (Artisan Entertainment).

Young pop artists are reaching fans through DVD-Video, such as Grammy winning Christina Aguillera's recent release "Genie in a Bottle" (RCA) and Ricky Martin's "One Night Only" (Columbia Music Video), while other top-sellers include re-mastered classics such as "Pink Floyd - The Wall" (Columbia Records/Columbia Music Video), "U2: Rattle & Hum" (Paramount) and "Led Zeppelin: The Song Remains the Same" (Warner Home Video).

This week's #1 seller (according to SoundScan) "Dave Matthews Band: Listener Supported" (RCA) was filmed with the DVD-Video format in mind and includes a number of features, such as the ability to select camera angles for certain songs.

A number of exciting titles are soon to be released. Upcoming releases include "Steely Dan: Two Against Nature" (Image Entertainment), "Jennifer Lopez: Feelin' So Good" (Epic Records), "U2: The Joshua Tree" (Image Entertainment) and a series of compilation "MTV Unplugged" releases including "Ballads," "Finest Moments," "Soul of R&B" and "Superstars" (SMV).

# # #