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"Please immediately remove from your store shelves and warehouses the titles on the attached list and return those titles to us."
——From today's SBMG Letter

SONY BMG SALES DEPARTMENT ISSUES "IMMEDIATE" CD RECALL LETTER

Company Promises to Exchange all Offending Product
And so it finally heats up to a boiling point.

Sony BMG has just released the following letter—included below in its entirety—to its vendors, requesting immediate product removal of all SBMG product featuring the XCP content protection software from their shelves. Also included was a downloadable list of all affected CDs. The company also announced an immediate consumer exchange program for all product named on the list.

It is not yet clear how many retailer will immediately take Sony BMG up on their offer and clear the shelves of the offending product.

November 16, 2005

Re: Request for Immediate Product Removal

Dear SONY BMG Music Entertainment Account:

You may be aware of the recent attention given to the XCP content protection software included on some SONY BMG CDs. This software was provided to us by a third-party vendor, First4Internet. We are writing to provide you with information about the XCP technology. In addition, we are asking for your cooperation in removing these CDs from your inventory and supplying consumers with new copies of the same titles without the software.

Security concerns have been raised regarding the use of CDs containing this XCP software. It is important to note that the issues regarding these discs apply only when the CDs are played on computers, not on conventional, non-computer-based CD and/or DVD players. For consumers who wish to play these CDs on their computers, we have issued a software update that we believe addresses the security concerns. Shortly, we will provide a revised and secure uninstall procedure for the XCP software.

Attached to this letter is a list of the titles containing the XCP software. Please note that this issue does not affect any titles not on the list which may have employed a different content protection technology.

We want you to know of the steps we are taking, and ask for your cooperation in supporting them:

1. Please immediately remove from your store shelves and warehouses the titles on the attached list and return those titles to us. We will, of course, give you credit at the price paid for returned merchandise. We are currently manufacturing replacement titles. Your account representative can give you instructions on how to ship the product to us at no cost to you.

2. We are commencing a direct consumer exchange program whereby consumers may return product containing the XCP software for a replacement version of that title without the software. The details of this program, as well as an FAQ and other information, will be posted shortly on: http://cp.sonybmg.com/xcp. At this website, we will also make available a printable fact sheet that you may provide to customers who have questions about this situation. A copy of the fact sheet will also be available on SONY BMG Central.

3. In addition to alerting your customers to the direct exchange program, if they ask to exchange titles at your retail outlet(s), we encourage you to fulfill their request using the new CDs made available to you. We will credit you for opened and unopened XCP content-protected compact discs returned to us.

Thank you for your understanding and cooperation. We strongly believe these steps are beneficial in ensuring our and your continued goodwill with consumers and artists. SONY BMG remains committed to the goal of producing a safe and enjoyable music experience.

For questions regarding this program, please contact your account representative.

Sincerely,


SONY BMG Sales Enterprise

CD’s Containing XCP Content

Protection Technology

Note: We will shortly be releasing new versions of these titles without the XCP software. You therefore need to check this list for both the name of the album and the item number (which can be found on the spine of the CD). If the item number is not listed below, your CD does not contain XCP content protection.

ARTIST

ALBUM

ITEM NUMBER(S)

UPC(S)

1.

A Static Lullaby

Faso Latido

CK92772

827969277225

2.

Acceptance

Phantoms

CK89016

696998901629

3.

Amerie

Touch

CK90763

827969076323

4.

Art Blakey

Drum Suit

CK93637

827969363720

5.

The Bad Plus

Suspicious Activity?

CK94740

827969474020

6.

Bette Midler

Sings the Peggy Lee Songbook

CK95107 CK74815

827969510728 828767481524

7.

Billy Holiday

The Great American Songbook

CK94294

827969429426

8.

Bob Brookmeyer

Bob Brookmeyer & Friends

CK94292

827969429228

9.

Buddy Jewell

Times Like These

CK92873

827969287323

10.

Burt Bacharach

At This Time

CK97734

827969773420

11.

Celine Dion

On Ne Change Pas

E2K97736

827969773628

12.

Chayanne

Cautivo

LAK96819 LAK96818 LAK95886

037629681921 037629681822 037629588626

13.

Chris Botti

To Love Again

CK94823

827969482322

14.

The Coral

The Invisible Invasion

CK94747

827969474723

15.

Cyndi Lauper

The Body Acoustic

EK94569

827969456927

16.

The Dead 60's

The Dead 60's

EK94453

827969445327

17.

Deniece Williams

This Is Niecy

CK93814

827969381427

18.

Dextor Gordon

Manhattan Symphonie

CK93581

827969358122

19.

Dion

The Essential Dion

CK92670

827969267028

20.

Earl Scruggs

I Saw The Light With Some Help From My Friends

CK92793

827969279328

21.

Elkland

Golden

CK92036

827969203620

22.

Emma Roberts

Unfabulous And More: Emma Roberts

CK93950 CK97684

827969395028 827969768426

23.

Flatt & Scruggs

Foggy Mountain Jamboree

CK92801

827969280126

24.

Frank Sinatra

The Great American Songbook

CK94291

827969429129

25.

G3

Live In Tokyo

E2K97685

827969768525

26.

George Jones

My Very Special Guests

E2K92562

827969256220

27.

Gerry Mulligan

Jeru

CK65498

074646549827

28.

Horace Silver

Silver's Blue

CK93856

827969385623

29.

Jane Monheit

The Season

EK97721

827969772126

30.

Jon Randall

Walking Among The Living

EK92083

827969208328

31.

Life Of Agony

Broken Valley

EK93515

827969351529

32.

Louis Armstrong

The Great American Songbook

CK94295

827969429525

33.

Mary Mary

Mary Mary

CK94812 CK92948

000768353721 827969294826

34.

Montgomery Gentry

Something To Be Proud Of: The Best of 1999-2005

CK75324 CK94982

828767532424 827969498224

35.

Natasha Bedingfield

Unwritten

EK93988

827969398821

36.

Neil Diamond

12 Songs

CK94776 CK97811

827969477625 827969781128

37.

Nivea

Complicated

82876671562

828766715620

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