New York, NY – January 10, 2007 – Tim Bowen, Chief Operating Office, SONY BMG MUSIC ENTERTAINMENT today announced that the company is merging its U.S. Sales company with its Global Digital Business group, under the overall leadership of Thomas Hesse, who has added U.S. Sales to his existing title of President, Global Digital Business. Mr. Hesse, who is based in New York, will continue to report directly to Mr. Bowen.

“This new organizational structure is designed to maximize the increasingly diverse range of revenue streams generated by our artists, as well as our responsiveness to our U.S. physical and digital partners,” commented Mr. Bowen. “I wish Thomas and the entire team good fortune in their many endeavors in today’s ever-changing music marketplace.”

As President, Global Digital Business and U.S. Sales, SONY BMG MUSIC ENTERTAINMENT, Mr. Hesse will oversee all aspects of the U.S. sales division, in addition to his ongoing responsibilities for the Global Digital Business operating group, which develops the company’s digital revenues worldwide.

Reporting to Mr. Hesse will be Jordan Katz, President, U.S. Sales, who is in charge of all U.S. physical sales accounts. Mr. Katz and his team will work closely with the company’s labels both on day-to-day and strategic physical sales activities, as well as with the U.S. Digital Sales team on joint initiatives.

Also reporting to Mr. Hesse will be Dennis Kooker, Executive Vice President, Operations and Finance. Mr. Kooker will help Mr. Hesse with the day-to-day operations of the enlarged Global Digital Business & U.S. Sales Group. In addition to leading the Finance related functions, Mr. Kooker will also assume responsibility of the physical supply chain and other projects.

Thomas Hesse was named President, Global Digital Business, SONY BMG MUSIC ENTERTAINMENT in 2004. From 2002 to 2004, Mr. Hesse served as BMG’s Chief Strategic Officer. In this capacity he has been responsible for mergers and acquisitions and business development, as well as for setting the strategic direction for BMG’s digital business and new technology initiatives.

Prior to joining BMG, he was Executive Vice President and Head of Corporate Strategy at Bertelsmann AG in Guetersloh, Germany. Mr. Hesse had previously held a number of executive positions at the company’s television division RTL, including Secretary General of RTL Television, Germany’s largest commercial broadcaster, where he ran the network’s program acquisition and distribution groups, and CEO of RTL NEW MEDIA, where he built up the company’s internet and digital television activities as well as other ancillary businesses. He began his career in media and entertainment as a corporate consultant at McKinsey & Company, where he focused on Media and Corporate Finance.

He holds a BA and MA from Oxford University, an MSc from London School of Economics and a doctorate from St. Gallen University. He studied as a concert pianist at the Mozarteum in Salzburg and the Hochschule fuer Musik in Duesseldorf, Germany.

About SONY BMG MUSIC ENTERTAINMENT

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 international 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.

Contact:

John McKay

SONY BMG MUSIC ENTERTAINMENT

212.833.5520