EMI Group PLC
23 January 2002
EMI GROUP plc
VIRGIN TERMINATES CONTRACT WITH MARIAH CAREY
LONDON: 23 JANUARY 2002 - EMI Group plc today announces that its subsidiary,
Virgin Records America, has terminated its recording contract with Mariah Carey,
and has agreed to pay her $28m (£19.6m) in respect of this termination.
This cost, together with £18.5m in respect of balance sheet and other write-offs
associated with Ms Carey's recording contract with Virgin, will be treated as
exceptional in the Group's accounts for the year ending 31 March 2002.
In September, EMI announced an intention to create an exceptional charge in the
year of approximately £100m for rationalisation and restructuring, with eventual
annual savings of around £65m. As indicated in the interim results statement in
November, Alain Levy's ongoing strategic review of the EMI Recorded Music
business is expected to result in a higher exceptional charge and greater
savings than originally anticipated. A further announcement regarding the
strategic review will be made in March.
EMI Group plc: +44 20 7667 3216
Brunswick Group: +44 20 7404 5959
Dan Klores Communications: +1 212 685 4300
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