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"We have possibilities for cross-divisional collaboration on marketing, promotion, advertising, distribution and third party partnerships that no other company
can claim."

AMES: WMG’S TIME IS NOW

Label Group Chieftain Rallies Troops, Praises AOLTW Leaders In Memo
In a move designed to rally the troops for the coming year, Warner Music Group CEO Roger Ames sent out an internal memo recently, alerting staffers that the time to produce results is now.

Coming off a tumultuous year that saw huge personnel changes and a costly failed merger with EMI, Ames is looking to synergy within WMG and the resources parent AOL Time Warner has to offer as the No. 1 media company in the world to help produce results in the future. Indeed, WMG rebounded nicely towards the end of 2001 on the strength of releases by Enya, Linkin Park, Staind, Madonna, Jewel and others.

In the memo, Ames says he is "pleased" that WMG has increased its global marketshare this year. "We are currently the No. 2 company in the U.S. in total marketshare and we are showing significant improvement in almost every major territory around the world. We've grown in local repertoire and have made great strides in developing key music genres. We've constructed a new global marketing system and redesigned the catalog division, and both have shown positive results that will only increase in years to come."

He adds: "We are looking toward a period of management and organizational stability, and I am also very excited about the changes at AOLTW. Dick Parsons has been an active supporter of the Music Group, and he will continue to be involved when he takes over as CEO of AOLTW. [AOLTW COO] Bob Pittman and I have a strong working relationship and I look forward to the many contacts, ideas and skills that Bob will bring to benefit the Music Group. Furthermore, AOLTW has continued to invest in and support the music division."

Ames said that as he looks forward, he sees WMG offering "a depth and range of opportunities for both artists and employees that no other music company can match. We have possibilities for cross-divisional collaboration on marketing, promotion, advertising, distribution and third party partnerships that no other company can claim."

Ames concludes the memo optimistically. " I hope you share my belief that the best is yet to come for Warner Music Group. And in these uncertain times, I believe we have an important role in bringing music to people around the world, as it fosters understanding and communication in a way almost nothing else can."

He added that anyone who wishes to contact him over the next few days will find him in the "Duuuude" chat room on AOL.

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