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Nippon Columbia Announces Revitalization Plan, Lowers FY 2001 Outlook
January, 17 2002
TOKYO, Japan -- As previously announced in October 2001, Nippon Columbia Co., Ltd. undertook a new mission as a global music entertainment company by spinning off its audio/video manufacturing business.

Since October 2001, Nippon Columbia's new management team has focused its efforts on re-establishing the legendary record manufacturer as a leading music company. The management is announcing a new initiative entitled the Nippon Columbia Revitalization Plan ("NCRP"). This initiative will be led by a global team of talented and experienced entertainment industry veterans who will work together with the employees to revitalize Nippon Columbia into a preeminent global music entertainment company. An amended forecast for FY 2001 ending March 31, 2002 (April 1, 2001- March 31, 2002) is also announced.

I. Nippon Columbia Revitalization Plan ("NCRP")

1. Vision

To restructure the Company into a creative and efficient organization, thereby:

(A) Becoming a total spectrum music entertainment company with strength centered in A&R and Marketing skills

(B) Differentiating between core/non-core businesses and utilizing all resources in the business of creating hits

(C) Aggressively seeking opportunities outside Japan, aiming to become a global company

For those purposes, specific measures will be taken with a view to:

(1) Concentration on & Reinforcement of Content Business by Restructuring
(2) Reforming Operational Organization & Building a New Cost Structure
(3) Special Program to facilitate Streamlining of Organization--"PRP"

2. Specific Measures to Accomplish the Vision of NCRP

(A) Concentration on & Reinforcement of Contents Business by Restructuring

(1) Delayer the A&R organization and make it more efficient. Restructure A&R culture-specific divisions. Each A&R department will report directly to Katsumi Matsumura, the newly-named CEO and each department will have its own distinctive creative team and culture. Nippon Columbia will develop a new and strong voice in the J-Rock and J-Pop markets while continuing to fortify its