SMG and EMI announce strategic digital distribution partnership in China

Flowers Band's 'Happy World' debuts on SMG's new media platforms

Shanghai, 16 November, 2006

Shanghai Media Group (SMG), one of the most influential Chinese-language media companies, and EMI Music today announced a strategic content partnership across all of SMG's online, mobile and traditional media outlets.

The deal will see the latest releases by EMI Music artists such as Anson Hu, Xu Wei (China), Sandy Lam (Hong Kong), Richie Ren, David Tao and Jolin Tsai (Taiwan), as well as global stars such as Robbie Williams and the Rolling Stones, promoted on mobile, broadband, print media, TV and radio. Music fans will be able to use the various platforms to get closer to their favourite stars, through online chat rooms, mobile applications, SMS competitions and TV programming. The two companies will also link for special artist events.

Kicking off the new partnership are the Flowers Band - signed to EMI's Pushtyphoon label headquartered in Shanghai - who recently had their debut digital album 'Happy World' released on SMG's new media platforms. The album can be downloaded and streamed both on the internet and via mobile phones. The Flowers Band's new music video can also be downloaded and streamed exclusively for two weeks through the 'Dream Vision' platform operated by SMG's mobile division Dragon New Media. Ringtones and ringbacks by the Flowers Band will also be made available to around one million subscribers to Dragon New Media's service.

After an online press conference alongside Zhang Da Zhong, vice president of SMG and Michael Hwang, chairman of EMI Music China this morning, the band held an interactive online session with Flowers' fans from across China.

Michael Hwang commented: "This agreement enables us to provide consumers in China with new ways to experience and interact with music from their favourite artists, while at the same time giving valuable and highly targeted exposure for our artists through SMG's extensive media network."

Zhang Da Zhong said: "The cross platform digital release of music with EMI is a major step towards developing legitimate music distribution in China. It proves that new media has become a major distribution channel for music, and sets a milestone for new media development in China. SMG will work closely with EMI to market legitimate digital music through our media resources and provide quality entertainment to China consumers."

About Shanghai Media Group

SMG is one of the world's most powerful and influential Chinese-language media and entertainment groups, with radio and TV as its core business. Other related businesses include performing arts and sports, technical service and investment. SMG was founded in 2001 after merging Radio Shanghai, Eastern Radio Shanghai, Shanghai Television, Oriental Television Station and Shanghai Cable Television. It broadcasts 258 hours of TV and 214 hours of radio on a daily basis (2005). SMG operates 13 analog TV channels (7 cable channels covering Shanghai area, 4 terrestrials for Shanghai and neighboring areas, and 2 satellite channels for domestic and overseas subscribers), 11 analog radios, 16 national digital pay channels, 1 broadband online TV, 1 mobile phone TV, and 1 national IPTV service platform, 5 newspapers and magazines, and 5 sports clubs. SMG produces TV and radio programs in news, entertainment, sports, finance, music. It also produces TV series, documentaries and cartoons. SMG aims to become a major producer, distributor and provider serving the Chinese-speaking communities worldwide.

About EMI Music

EMI is the world's largest independent music company, operating in 50 countries. Its EMI Music division represents around 1300 artists spanning all musical tastes and genres. Its record labels include Angel, Astralwerks, Blue Note, Capitol, Capitol Nashville, EMI Classics, EMI CMG, EMI Records, EMI Televisa Music, Manhattan, Mute, Parlophone and Virgin. For further information on EMI, please visit: www.emigroup.com.