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EMI Group PLC (EMI)

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Monday 25 October, 2004

EMI Group PLC

Disposal


EMI CONTINUES MANUFACTURING OUTSOURCING STRATEGY

WITH AGREEMENT TO SELL AUSTRALIAN CD PLANT

LONDON, 25 October 2004 -- EMI Music and Warner Music have reached agreement
with Summit Technology Australia Pty Ltd to sell their jointly owned CD
manufacturing business in Sydney, Australia, to Summit.

This initiative represents a further step in EMI's drive to reduce
manufacturing costs and also make them fully variable, insulating the business
from the effects of changing volumes. EMI announced in March 2004 that is was
to cease self-manufacturing CDs and DVDs in Europe and the United States and
has subsequently transferred its associated assets in the Netherlands to
MediaMotion and closed down its manufacturing plant in Illinois.

Under the new agreement, EMI and Warner will transfer their manufacturing
facility Digital Audio Technologies Australia (DATA) and its associated assets
and employees to Summit with effect from 31 December 2004. Simultaneously, EMI
Music Australia has entered into a long term supply agreement with Summit for
its local supply of CDs and DVDs.

Summit will acquire DATA's assets and stock at book value with the proceeds
from the sale being nominal.

EMI retains two joint venture manufacturing facilities, one in Japan (part of
the Toshiba-EMI joint venture company) and a small manufacturing facility in
Canada.

                                    -ENDS-                                     

Enquiries

EMI Group plc

Amanda Conroy         Corporate Communications    +44 20 7795 7529           
                                                                             
Claudia Palmer        Investor Relations          +44 20 7795 7635           
                                                                             
Susie Bell                                        +44 20 7795 7971           
                                                                             
Brunswick Group LLP                                                          
                                                                             
Patrick Handley                                   +44 20 7404 5959