URIE ADDRESSES HIS UMG FAMILY;
GRAINGE EXPRESSES HIS THANKS

To my UMG family:

I'm writing this note to let you know that I've decided to leave Universal at the end of the year.

After 18 years, I certainly can't say this was an easy decision. There is no one specific reason that has led me here. Part of it is that after all these years, I feel like it's time for me to make a change. Some of it is to be free to pursue the entrepreneurial opportunities that I've been eyeing. Most importantly is having the opportunity to do some of the many things that I haven't had the time to do for all of my working life. There's a big world out there and I have a big family to enjoy it with.

The Universal Music Group is unique in the history of the entertainment business. Never has a single entity ever been so successful in any content business. I leave behind a company that I'm sure will continue to be the world leader. Our management team led by Lucian and Boyd will take us to new heights that will be a pleasure to watch. Our label heads and rosters are second to none and will improve their position in the years to come.

Most importantly I'd like to thank my family at UMGD. From the early days we strived not to just be the biggest but to be the best and in this you have certainly succeeded. We are the most awarded company in the long history of the music business including being recognized beyond entertainment, twice being named one of the Top 5 sales organizations of any kind in America, four times being the NARM Distribution Company of the Year. UMGD was also the first and only company to have combined a major music group in UMG as well as a major studio home video unit, Universal Studios Home Entertainment. We were the first company to erase the line between digital and physical sales, thus leading the industry through the sometimes challenging transition into the new digital age. All of you who made these things possible will always hold a special place in my memory.

My leaving in no way reflects on my optimism for the music business. There is no doubt that we are at a turning point that will bring us more ways to monetize our product and better marketing of our wonderful artists to a world that is hungry for what only we can give them.

Between now and the end of December I hope there will be time to share a laugh and fond memory with each of you. Thank you from the bottom of my heart for what each of you has brought to my life.

LUCIAN GRAINGE RESPONDS

Jim,

Thank you for your beautiful words, for all of your many accomplishments and, more importantly, for being such an extraordinary leader and professional. Your expertise and commitment are remarkable. We owe you an enormous debt of
gratitude.

Moreover, you have built a first-rate team. Each one of them has made important contributions, and they will continue to do great things here.

I look forward to taking you up on your offer to share some laughs—and maybe a beverage—over these next few months together.

With appreciation and all best wishes for your continued success,

Lucian