EMI CMG Acquires Interest In Gotee Records

BRENTWOOD, Tenn. - May 10, 2002 - EMI CMG, a leading Christian music company, announced today that it has signed a letter of intent to acquire a twenty-five percent interest in Gotee Records, according to Bill Hearn, President and CEO of EMI CMG.

Gotee Records, whose roster includes Jennifer Knapp, Out of Eden, Relient K, the Katinas and John Reuben among others, will remain independent and under the leadership of CEO Toby McKeehan and President Joey Elwood. EMI CMG expects to close this transaction within 90 days.

"Our investment in Gotee Records represents tremendous belief in Toby, Joey and the Gotee staff and artist roster. We want to do everything we can as a company to help them fulfill their mission and grow their business," said Hearn.

McKeehan and Elwood, and former partner, Todd Collins, established Gotee Records in 1994, setting up shop in McKeehan's basement. The label's first release was a maxi-single from Out of Eden. Today, the critically acclaimed roster includes nine artists who have released 35 albums in eight years, with sales averaging more than 120,000 units per release. Gotee's offices are located in Franklin, Tenn.

McKeehan commented: "Joey and I feel like we've built Gotee into a creative artist driven boutique label, but we have visions of taking the label to the next level of success. Inviting EMI CMG to invest in Gotee provides us with a larger family of resources to draw from without changing the personality and vibe we have created at the label. Because we already have a solid established relationship with the leadership at EMI, this was a natural progression. For us, it will be like having a big brother that wants to see us achieve our goals."

The expanded relationship will include a long-term extension of the distribution agreement with Chordant Distribution, EMI CMG's distribution arm. EMI CMG will also provide corporate finance and business affairs support to the label. Gotee's publishing interests are not a part of the acquisition, but EMI Christian Music Publishing will continue to be the exclusive administrator of Gotee's publishing catalog.