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"This has been an extremely difficult decision, but I know it is the right one for my family. Nonetheless, this is a critical time and I have much to do in the coming months. We continue to face unprecedented levels of online piracy as well as a changing market in physical piracy here and abroad."
——Hilary Rosen, on her decision to resign from the RIAA.

HILARY ROSEN TO LEAVE
RIAA AT END OF YEAR

Seventeen-Year Trade Org. Veteran Wants To "Devote More Time to [Her] Children"
They won’t have Hilary Rosen to kick around much longer.

The RIAA Chairman/CEO announced today she will leave the organization at the end of 2003.

Rosen, who has been with the trade group for 17 years, was the industry’s chief advocate and spokesperson during a time of unprecedented turmoil and controversy in the business. She led the RIAA to winning copyright infringement cases against file-sharing services Napster and Aimster, as well as this week's judgment against Verizon to combat online piracy by subscribers to major Internet providers.

RIAA President Cary Sherman will remain in his current position. Rosen and the Board of Directors have asked him to serve on a search committee for a replacement.

Said Rosen: "This has been the most exciting job I can imagine. During my time here, the recording industry has undergone dramatic challenges and is well-positioned for future success. I have been extremely proud to have been a part of this industry transition."

Rosen went on to say she wants to "devote more time to [her] young children… This has been an extremely difficult decision, but I know it is the right one for my family. Nonetheless, this is a critical time, and I have much to do in the coming months. We continue to face unprecedented levels of online piracy, as well as a changing market in physical piracy here and abroad.

"The RIAA has much to do to address these issues, as well as help the companies transition the music consumer to the exciting offerings everyone has been working so hard to deliver in the legitimate online music business. We must also work with our partners at retail, in the creative and technology industries and with governments worldwide to promote the future growth of the music industry."

The Board will be conducting a formal search for Rosen’s replacement over the next several months. "We are confident of a smooth transition," added Rosen. "I believe that the RIAA staff is simply the best in the business and I am proud of the team we have built."

Rosen was upped to Chairman/CEO in May 2002, at which time she promoted Sherman to President. Rosen became the President/CEO in 1998 after 12 years at the RIAA, succeeding outgoing RIAA ruler Jay Berman. Before joining the organization in 1987, Rosen had her own consulting firm. She was also a VP for the lobbying firm Liz Robbins Associates, working accounts on Capitol Hill, including local-interest groups and governments. Prior to that, Rosen worked for former New Jersey Governor Brendan Byrne as well as being part of the transition teams of Senators Dianne Feinstein and Bill Bradley. She is a founding member of Rock the Vote and a board member for The Musicians Assistance Program.

During her tenure, the trade group has led the fight to establish a legitimate marketplace for digital music, reinforcing copyright as a core American value and busting several thousand bootleggers at flea markets across the country. Rosen has become a lightning rod for the conflict surrounding illegal file-sharing and downloading music from the Net as well as the strained relations between labels and artists.

She has also made a name as a passionate defender of the arts and a leader in the music industry’s campaign against censorship.

UMG Chairman/CEO Doug Morris praised Rosen's legacy: "She has been part of the music industry for almost 20 years. Throughout her tenure, her insights, dedication and passion have benefited everyone that loves music. She'll be greatly missed. We are delighted that Cary Sherman has decided to remain as President of the RIAA and we look forward to working with him in the years to come."

EMI Recorded Music N.A. Chairman/CEO David Munns said: "Hilary Rosen has been a tremendous advocate for the recorded music industry. She has been incredibly effective in raising awareness about the important value and impact that music has on our lives, our culture and our economy. She has also been extremely influential in both transforming the music industry in the digital age and in fighting piracy. I look forward to working with her and accomplishing much in 2003."

Added Warner Music Group Chairman/CEO Roger Ames: "Hilary is a remarkable leader and when she leaves at the end of the year, she will take with her our sincerest gratitude, respect and admiration."

Sony Music Entertainment Exec. VP Michele Anthony said: "As head of the RIAA, Hilary has given our industry strong leadership on a broad range of complex and challenging issues and has achieved many accomplishments. She has earned the gratitude and admiration of the entire music industry. While we respect her decision to step down by the end of the year, we will certainly miss working with her. At the same time, we are delighted that Cary Sherman will continue in his current post, and we look forward to working with him as we continue to meet the challenges of a changing marketplace."

BMG Chairman Rolf Schmidt-Holtz called her "a voice of strength, passion and steadfastness during a tumultuous time for our industry. We thank her for the tireless work she's done."

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