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CME Sells Japan-based Manufacturing Subsidiary
July, 25 2005

Sale Follows Record Earnings and Continues Successful Corporate Turnaround
Ben Feder of ZelnickMedia elected to CME Board of Directors

Tokyo, July 25: Columbia Music Entertainment of Japan (CME) has completed the sale of its Japan-based CD and DVD manufacturing division to Pineridge Partners KK for approximately $55 million. Based in Kawasaki, Japan, the former CME subsidiary, will continue to manufacture for CME and other customers on a contract basis. CME continues to own and operate DDL, a U.S.-based CD/DVD manufacturing facility.

"The sale of this non-core asset allows CME to continue to focus its energies and financial resources on its primary mission - increasing the long-term success of what is now a growing and profitable music and entertainment business," said ZelnickMedia's Ben Feder.

ZelnickMedia has been responsible for the management of CME since majority control of the company was acquired by Ripplewood Holdings in October, 2001. The company reported record earnings and revenue growth for the year ending March 31, 2005.

Mr. Feder, who oversaw the sale and has been involved integrally in the company's turnaround, was elected to the Board of Directors of CME at its recent annual shareholders meeting. Feder joins Strauss Zelnick, the Chairman of the company, as well as Ripplewood's representatives on the board.