"It has been almost eleven months since Citi reached an agreement to sell EMI
Music to Universal Music Group. From that moment to this, even as we
worked tirelessly to help UMG reach the finish line, we have never
waivered in our dedication to help our artists achieve their dreams.

That
dedication has continued to fuel our success, and there is no greater
evidence of that than our August results, which I have to say were
simply great. And as of this moment it looks like we are set to do even
better in September and bring the half year in well above budget!

While
that is as good a reason to write you as any that I could think of, the
actual reason I am doing so is that today we reached a milestone in our
journey to new ownership. After many months of consideration, the
European Commission has finally given its approval to the sale. (The
European Commission's press release announcing their decision and their
Q&A is attached for you to read).

With that approval and the
imminent clearance in America, as well as those already received from
other regulators around the world, UMG has cleared the final hurdle in
its quest to become the owner of EMI Music.

So, we are now ready
to close this chapter in the history of EMI. It now seems all but
certain that in a week's time, on September 28th, UMG will finally take
control of this great and historic business.

However as all of you
know, to secure the approval of the transaction by the European
Commission, UMG has committed to sell a substantial portion of our
European business along with several of their own businesses. As a
result, while in the coming days many of you will move on to become a
part of UMG, others who are a part of the businesses that are to be sold
on will have to wait a while longer to know who will be the long-term
owner of their businesses.

So what can each of you expect when the
sale completes? For most everyone, certainly for some time to come,
very little will change. As you have often heard me say, it will be
pretty much business as usual.

But of course the sale and the further divestiture will affect the way we are organised and over time how we work.

The
first step for those parts of the business that will be retained by
Universal will be to change the reporting lines to connect each of our
businesses into the UMG structure. It is UMG's aim to be sure that these
lines of authority are understood by the affected executives even
before they take control so all will move smoothly following completion.

Clearly it is UMG's aim to see the two businesses move closer together.

We
will no longer be competitors, rather we will be working together to
achieve a set of shared goals and objectives. To underpin that, a
principle focus of the coming transition will be to unify systems and
processes. Since that always takes time to accomplish, do not expect any
great moves on day one.

On the other hand, the businesses that
will be sold on, as required by the agreement with the European
Commission, will not be a part of the UMG structure. They will be
brought together as a separate unit, managed independent of Universal.
They will report to someone appropriately called the 'hold separate
manager'. His role is to be sure that these businesses continue to be a
strong and competitive force on the market, through and beyond the point
at which they are sold. He will report to a Trustee whose duty is to
assure that the intent of the agreement with the Commission is met. In
the next few days Lucian [Grainge] will be announcing who will be taking
up this role and I am sure that everyone affected will be as pleased as
I am about his choice.

I know this all sounds a bit complicated,
but if you think about it this new unit is just a more a more
concentrated version of the existing Europe+ Hub. It will draw on the
resources of the central functions in the same way. And it will continue
to participate in the MEA system, so repertoire will move freely under
the existing intercompany terms.

So for some time to come it will indeed be business as usual.

However
it goes without saying, that once they have a new owner they will move
on and out of our system taking their repertoire with them. Though even
then, it is likely there will be a further period of handover and
transition.

With the completion of the sale on the 28th, it will be the time for Ruth and me to step aside from the business.

For
those of you who are to be a part of UMG, you should look to Lucian and
his team for leadership. They fought hard for the right to lead you,
and I am sure that they will be a proud and committed steward of EMI and
its heritage. I know that in the coming days Lucian looks forward to
sharing with each of you his plans and aspirations for the future of the
combined business.

For those of you whose business remains on the
journey to its ultimate ownership, I am certain that you will be well
guided and led in these coming months as the search for a new home
continues.

No matter which direction our lives take us in the future, all of us will forever be a part of the EMI family.

We
have accomplished so much together, broken new ground, learned so much
from each other, built lasting friendships and had a lot of fun along
the way. Our dedication to our artists and our commitment to doing the
right thing on their behalf has enriched us, and changed their lives –
and those of millions of music fans around the world – forever. That is
the legacy all of us carry with us, as we move on to the next chapter in
our lives.

I know I can speak for Ruth as well as myself that it
has been both an honor and a privilege for us to have led EMI. You have
made us proud.

We wish you all the very best – you deserve it."