ARTEMIS AND EDEL
CONSUMMATE DEAL

Danny Goldberg's Artemis Records and Michael Haentjes' edel music are close to consummating a deal that would see edel make a major cash investment in Artemis in exchange for significant interest in the label.

Artemis and edel are already in business together through leading independent distrib RED Distribution, which ships Artemis product; RED is 80%-owned by edel and 20%-owned by Sony Music. Edel purchased its piece of RED from Sony earlier this year.

The cash investment in Artemis will significantly increase Goldberg's war chest, and Artemis is expected to boost its A&R presence and increase its competitive position in bidding for acts.

Hamburg, Germany-based record group edel music's acquisition of RED, which saw RED take over all of edel's U.S. business, gave the growing German company a significant place in the U.S. market. Edel already owned the European distribution rights to the Buena Vista Music Group's content. Its upcoming deal with Goldberg will further help edel CEO Haentjes get a firmer foothold in the American market.

The upcoming investment in Artemis is the second major move in the United States for edel after an aggressive European expansion that followed a September 1999 share sale that raised 102 million euros ($109 million). Last year the company bought the Finland unit of K-tel International after starting joint venture Playground Music Scandinavia AB. Edel has also bought into Dutch and Portuguese companies.

Edel music also recently tapped former BMG Entertainment International President and CEO Rudi Gassner as a member of its supervisory board.