Sony Corporation

BERTELSMANN AG AND SONY CORPORATION AGREE TO FORM JOINT MUSIC GROUP

The international media and entertainment companies Bertelsmann AG and Sony
Corporation today announced that they have signed a non-binding letter of intent
to form a jointly owned recorded music company to be called Sony BMG. The
company will be 50% owned by Bertelsmann and 50% owned by Sony.

The joint venture of BMG and Sony Music Entertainment will combine their
recorded music businesses. The new company would not include the companies'
music publishing, physical distribution and manufacturing businesses.

Rolf Schmidt-Holtz, currently Chairman and Chief Executive Officer of BMG, would
serve as Chairman of the Board of the new joint venture. The Board of Directors
of the new company would be made up of an equal number of representatives from
Sony and Bertelsmann.

Andrew Lack, Chairman and Chief Executive Officer of Sony Music Entertainment,
would be Chief Executive Officer. The newly formed joint venture would include
senior executives from both music groups.

Consummation of the transaction remains subject to a number of conditions,
including approvals of the regulatory authorities in the US and the European
Union.

Contact:

Keith Estabrook                  Patrick Reilly
Sony Music Entertainment         BMG
212.833.4647                     212.930.4961

Ann Morfogen                     Oliver Herregesell
Sony Corporation of America      Bertelsmann AG
212.833.6873                     011 49 52 41 80 24 66

Mack Araki
Sony Corporation of America
212.833.6821