EMI RESTRUCTURES
NORTH AMERICA

Alain Levy has announced major changes at EMI. The EMI chief has named his right-hand man, worldwide vice chairman David Munns, Chairman/CEO of EMI Recorded Music North America. All of EMI Recorded Music business heads on this side of the pond will now report to Munnsy, who will begin looking for affordable housing in New York City immediately.

As expected, Matt Serletic has been named to head Virgin Records in the U.S., given the title of Chairman/CEO. Additionally, former Capitol President/current EMI Recorded Music North America Deputy President Roy Lott has been named President/COO of Virgin. Serletic and Lott will not be filling Ray Cooper and Ashley Newton's parking spaces in Beverly Hills, however, as Virgin Records will be moving to New York later this year. EMI's New York headquarters will be moving to 150 Fifth Avenue this fall as well. The Andy Slater-led Capitol will be EMI's West Coast presence.

In a statement, Levy said: "Over his long career, David has had a great deal of experience in the US market. Over the last three months in particular, he has demonstrated his strength of vision and his qualities of leadership. We need to ensure a very senior presence for EMI in North America, and David is ideally suited to the job. In Matt and Andy, we have two music executives who are very much in touch with today's music. I believe that EMI in North America is going to be an exciting place for artists and executives—especially if we keep restructuring."

Munns added: "I am very excited about this new challenge, while continuing in my role as Vice Chairman of the record division. Alain and I are sorry to be saying goodbye to Ray and Ash, and we wish them the very best for the future. Now, if you'll excuse me, I have to go interview realtors."

Serletic said: "I am honored to be named Chairman & CEO of Virgin Records America. Virgin has long stood for exceptional musical artistry and entrepreneurial business savvy. I will respect this legacy while assembling an outstanding executive team focused on launching, developing and maintaining the careers of today's premiere artists. I am excited for Roy Lott to join me as President and COO of Virgin America, as I believe Roy is one of the industry's most competent and experienced music executives. At its best, a record label connects the public to the most moving, meaningful and enjoyable contemporary music. Under my guidance, Virgin will passionately support today's exceptional music makers. Hallelujah."

Serletic is best known as the producer of "Smooth" from Santana's mega-selling/Grammy-winning Supernatural and for discovering/producing Matchbox Twenty. He has also produced Aerosmith, Celine Dion and Willie Nelson's recent Lost Highway album, The Great Divide. Two years ago, he formed Melisma Records, a JV with Arista. Melisma and Arista have since parted ways.

The rest of the existing EMI North America crew reporting to Munns consitst of: Deane Cameron (President EMI Music Canada), Richard Cottrell (President/CEO EMI Music Distribution), Mike Dungan (President/CEO Capitol Nashville), Steve Greenberg (President/CEO S-Curve Records), Bill Hearn (President/CEO EMI Christian Music Group) and Bruce Lundvall (President Angel/Blue Note).