Tokyo, Japan, February 21st, 2008 — BMG JAPAN, Inc. (“BMG JAPAN”) and Hostess Entertainment (“Hostess”) announced today that they have reached an agreement for BMG JAPAN to exclusively distribute the Hostess catalogue and new releases.

This unique strategic indie-major partnership will begin March 1st, 2008, and will see all Hostess repertoire from exclusive partners Domino Recording Co, The PIAS Group (PIAS Recordings, Wall of Sound, Different, PIAS UK/Integral), recent high-profile signing V2/Cooperative Music (V2, Wichita, Bella Union, City Slang) and other select artist management and label partners distributed through BMG JAPAN.

BMG JAPAN will provide back-end distribution management as well as offer nationwide support for sales & broadcast media promotion. Hostess will continue to manage all aspects of its business and release schedule with its in-house marketing, digital, promotion and sales departments.

The new partnership follows successful working relationships between the two parties on both Label Mobile (Hostess & BMG JAPAN launched a unique co-marketing partnership for Hostess repertoire through the Label Mobile system in 2007), and the recent Gold-selling Radiohead album “In Rainbows” released by _Xurbia_Xendless/Hostess which was distributed by BMG JAPAN.

Upcoming releases through this new partnership will include The Kills, Los Campesinos, Blood Red Shoes, Vitalic, Mogwai, Yo Majesty, Bloc Party and the hotly anticipated album from Alex Turner (Arctic Monkeys) and Miles Kane (Rascals/Little Flames).

“Andrew has built a reputation as a dynamic and proactive partner for international artists seeking release in Japan, and Hostess continues to grow with impressive speed. BMG Japan is unique among the major record companies in Japan in the very independent and collaborative relationships we have built with both international and domestic artist management, and the match with Andrew’s vision has been clear from the start. I am delighted to see our relationship evolve into this strategic partnership, and believe our relative strengths will join to propel Hostess toward significant further growth.”

– Daniel DiCicco, President, BMG JAPAN, Inc.

“With Hostess continuing to evolve and grow at such a rapid rate it’s been clear we needed to align ourselves with a distribution partner who could both help us maximize the potential of our exciting repertoire and also show a level of flexibility and a dynamic that’s generally all too rare within the Japanese industry. BMG Japan have proved to us through our previous projects together that they not only have those qualities in abundance but they’re also highly motivated and committed to helping Hostess grow in the way Hostess itself wants to grow. Despite interesting alternatives elsewhere, Daniel (DiCicco) made this an easy choice for me to make.”

– Andrew Lazonby, Founder & President, Hostess Entertainment

About BMG JAPAN, Inc.

BMG Japan is the wholly owned music entertainment company operated by SONY BMG Music Entertainment within the Japanese market and its labels include Arista, J Records, RCA and Zomba.

SONY BMG Music Entertainment is a global recorded music joint venture with a roster of current artists that includes a broad array of both local artists and global superstars, as well as a vast catalog that comprises some of the most important recordings in history. SONY BMG Music Entertainment is 50% owned by Bertelsmann A.G. and 50% owned by Sony Corporation of America.

About Hostess Entertainment

Hostess Entertainment was established in 2000, providing uniquely localised management, promotion, sales and marketing services across physical and digital formats for select international artists and labels seeking to establish themselves in the Japanese market. Its long term label partners include Domino Recording Co Ltd, V2/Cooperative Music and The PIAS Entertainment Group, with releases by artists such as Mogwai, Radiohead, Arctic Monkeys, Bloc Party and Enter Shikari.

Press Contacts for inquiries (for media only):

BMG JAPAN, Inc.

Phone: +81-(0)3-3797-9080 www.bmgjapan.com

Hostess KK

Ko Enomoto (Promotion)

Phone: +81-(0)3-5724-4414

Email: [email protected]

www.hostess.co.jp