Clive Davis Named Chairman and Chief Executive Officer of BMG North America; Davis to Lead Creative Centers of BMG in U.S.

NEW YORK--()--Feb. 2, 2004--Clive Davis, Chairman and CEO, RCA Music Group, has been named Chairman and Chief Executive Officer of BMG North America by Rolf Schmidt-Holtz, Chairman and Chief Executive Officer of BMG, effective immediately. Davis will report directly to Schmidt-Holtz.

Davis will lead BMG North America, based in New York. Charles Goldstuck, currently President and COO, RCA Music Group, will now become President and COO at BMG North America, where he will oversee the consolidated business operations and will continue to report directly to Davis. The newly formed group will combine all operations of the BMG owned record labels, including Arista, J, RCA, and Jive headed by Barry Weiss. In addition, Davis will also oversee BMG Distribution, BMG Strategic Marketing, and BMG Canada. The group does not include RCA Label Group-Nashville, which is led by Chairman Joe Galante, and BMG Classics led by Chairman Nicholas Firth. This change will allow for a larger alignment of BMG's music operations in North America in which administrative operations and certain support functions at the record labels will be consolidated.

Schmidt-Holtz said "The team of Clive and Charles, and this new alignment, improves our ability to compete in today's market place and will help us address future challenges. BMG has achieved great artistic and commercial success, but the continuing difficulties in the worldwide music market requires us to be well prepared for the future. The new structure will efficiently strengthen our focus on our creative centers."

On the appointment of Davis, Schmidt-Holtz noted, "I couldn't be happier that Clive agreed to assume this greatly expanded responsibility at BMG. For over 20 years, Clive has been instrumental in helping build the foundation of BMG to its powerful position today. On a personal note, I have to say that since I assumed my role as Chairman of BMG, Clive has become not only a trusted business colleague, but also a confidante and partner."

Davis said, "I am personally thrilled for this wonderful new challenge and opportunity, and to be a partner in the BMG team that Rolf has formed in recent years. We have some of the industry's best executives, poised and ready to meet that challenge. Charles and I are both particularly delighted to be working with Barry Weiss at Jive Records, one of the industry's most accomplished executives. I believe we can reach new heights and a new level of achievement for BMG."

BMG's longstanding and successful relationship with Davis dates back to 1979 when BMG parent company Bertelsmann bought Arista Records, which he founded in 1975. Davis built Arista into an industry leader, in the process discovering Barry Manilow, Patti Smith, Whitney Houston, Sarah McLachlan and Dido, rediscovering Carlos Santana, and then inspiring and working with Aretha Franklin and Annie Lennox. Davis led Arista until 2000, when he launched the instant major J Records. In late 2002 he was named to lead the RCA Music Group, a merger of J Records and RCA Records, which has produced an array of No. 1 records from a diversity of artists such as Alicia Keys, Rod Stewart, Clay Aiken, Luther Vandross, Monica and Ruben Studdard.

Davis' many industry honors include the 2000 Trustees Grammy Award for Lifetime Achievement and induction into the Rock and Roll Hall of Fame as the only non-performer.

BMG is the global music division of Bertelsmann AG, one of the world's leading media companies. BMG owns more than 200 record labels in 41 countries including, Arista Records, J Records, Jive Records, RCA Records, RCA Label Group - Nashville, and Ariola. In addition, BMG's music publishing operations are the third largest in the world.

Contacts

BMG
Patrick Reilly, 212-930-4961
or
Nathaniel Brown, 917-913-4394

Contacts

BMG
Patrick Reilly, 212-930-4961
or
Nathaniel Brown, 917-913-4394