MCGEE TO OFFER SHARES
IN POPTONES

Alan McGee, founder of Creation Records, home to Oasis, plans to float Poptones, a new label formed that will use new media music distribution as well as traditional means.

McGee told Reuters on Sunday that the Internet threatened traditional distribution of music and that there was room for a new music-led independent to become a music retailer by embracing digital technology.

Poptones would also press and distribute artists' music through traditional channels outside North America and Japan.

McGee is looking to acquire artists freed from contracts as a result of recent mergers between major music corporations.

"There is a huge market out there just waiting to be tapped," McGee said. "It is going to take a visionary young company to take the plunge, exploiting the true commercial potential of music on the Internet combined with a traditional retail approach."

Poptones' float on the junior AIM market would value the company at 11.44 million pounds ($17.3 million) and raise a net 2.05 million pounds through a placing of 109.925 million shares at 2p each.

Non-executive directors of Poptones include Julian Richer, founder of hi-fi retailer Richer Sounds, and Michael Blackburn, former Chairman of Halifax Group.