LYOR ADDRESSES THE TROOPS

Dear Partners,

It's my sad duty to let you know that, as of today, Jason Flom has decided to step down as Chairman and CEO of The Atlantic Records Group.

Jason's departure marks the end of an important era for Atlantic. Having joined the label more than 26 years ago as a field merchandiser, Jason proved himself to be not only one of the industry's most talented A&R men, but also one of its leading entrepreneurs.

As Chairman and CEO of Atlantic, Jason has played a critical role in our restructuring over the past year-and-a-half, and his efforts have left us very well-positioned for ongoing success as a nimble and progressive group of labels. All in all, the success Jason has achieved both personally and professionally is legendary in this business, and we will certainly miss his talent, insight and brilliant sense of humor.

Moving forward, Craig Kallman will serve as Chairman and CEO of The Atlantic Records Group. Julie Greenwald will continue to be Atlantic's President. And of course we are blessed to remain under the watchful eye of Ahmet Ertegun, Atlantic's Founding Chairman.
On an administrative note, Jason's departure also means that the Lava Records joint venture will become a wholly owned unit of The Atlantic Records Group.

I know I speak on behalf of the entire Company in thanking Jason for all of the incredible contributions he has made to Atlantic over the years, and I want to personally wish him only the best of everything.

Sincerely,
Lyor Cohen