EMI to Be First Major Music Company to Trial New Mobile Business Model;
Will Be Exclusive Music Video Provider for the Trial

NEW YORK and MOUNTAIN VIEW, Calif., April 4, 2006 – EMI Music, the world’s largest independent record company and Rhythm NewMedia, a mobile advertising company headquartered in Silicon Valley, are collaborating on pioneering advertising-supported mobile video trials with mobile carriers in the United States.  EMI is the first major music company to experiment with ad-supported, on-demand and pre-programmed mobile video content, and is the exclusive music video provider partner for the trial.

The trials, already underway, offer participating consumers free mobile video content with television-style advertising embedded in a highly targeted fashion.  The trials will continue through fall of 2006.

“Mobile continues to be a huge growth opportunity for EMI and an exciting way for fans to connect with artists.  We’re committed to exploring new ways of getting our content into the hands of music consumers using both proven and promising experimental business models,” said David Munns, Chairman and CEO EMI Music North America.  “Rhythm NewMedia is at the forefront of innovation with their approach, and we’re excited to be right there with them.”

Rhythm NewMedia has been working with leading mobile operators, brands, content owners and advertising agencies in the US and in Europe to test the concept of dynamically inserting targeted advertising into mobile content.  This marks the first time this approach of highly-targeted advertising has been used in the mobile music space.

How it Works
Mobile phone users will be presented with an electronic program guide (EPG) that will offer a range of content choices ranging from news, entertainment and sports from top-tier content providers.  Music videos from EMI artists will be the exclusive entertainment offering for the duration of the trial.   When a user selects a video such as Dem Franchize Boyz’s, “I Think They Like Me” that video is streamed and packaged with targeted advertisements.    

“EMI was early to recognize that experimenting with new business models for delivering content via mobile phones is critically important,” said Ujjal Kohli, CEO and Co-Founder, Rhythm NewMedia.  “It is only natural that they are leading the music industry in this mobile advertising trial.”

According to a new report from KPMG International called, Consumers and Convergence: Challenges and opportunities in meeting next generation customer needs, “Marketers are currently extremely excited with the prospect of personalized mobile advertising.”

As an example, during his keynote presentation at Advertising Age’s Madison + Vine conference in February 2006, Verizon Wireless’ Chief Marketing Officer, John Stratton predicted that as much as 25% to 30% of the $100 billion spent each year on brand advertising will find its way onto the mobile screen. 

About EMI
EMI is the world’s biggest independent music company operating directly in 50 countries. EMI Music represents more than 1,000 outstanding artists of all kinds of music. Among its record labels are: Angel, Astralwerks, Blue Note, Capitol, Capitol Nashville, EMI Classics, EMI CMG, EMI Records, EMI Televisa Music, Manhattan, Mute, Parlophone, and Virgin.

About Rhythm NewMedia
Rhythm is backed by top-tier venture capitalists Lightspeed, Morgenthaler and Rembrandt. The founders are CEO Ujjal Kohli, the former CMO of AirTouch Cellular, a $3.5bn revenue US mobile operator and CTO Shaukat Shamim, an early employee at Yahoo. Shaukat pioneered the development of the instant messaging platform, Yahoo Messenger.

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Contact:
Adam Grossberg, EMI Music, tel: 212 786 8855
Jeanne Meyer, EMI Music, tel:  212 786 8850
Shaukat Shamim, Rhythm NewMedia, tel: 650 961 9024