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5/11/2005

 
Warner Music Group Corp. Prices Initial Public Offering

Music Company Lists on NYSE Under Symbol: WMG

NEW YORK, NY -- (MARKET WIRE) -- 05/11/2005 -- Warner Music Group Corp. (NYSE: WMG) today announced it will offer 32,600,000 shares of common stock priced at $17 per share. 5,430,000 shares of common stock were reallocated from the selling stockholders to WMG for sale by it in the offering. WMG will use the net proceeds from the offering, plus an amount of cash resulting from a decrease in the cash dividend to be paid to its existing shareholders in connection with the offering and a reduction in other cash payments, to repay approximately $574 million of its indebtedness, the same amount of debt repayment as previously announced.

Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. are the joint global coordinators and, together with Lehman Brothers Inc. and Deutsche Bank Securities Inc., served as joint book-running managers for the offering. Banc of America Securities LLC and Citigroup Global Markets Inc. will act as joint lead managers.

Certain WMG stockholders have granted the underwriters of the offering an option to purchase up to 4,890,000 additional shares at the initial public offering price within 30 days to cover over-allotments. Trading of WMG shares is expected to begin tomorrow on the New York Stock Exchange under the ticker symbol: WMG.

A registration statement relating to the common stock has been filed with and declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering of these securities will be made only by means of a prospectus. A copy of the final prospectus may be obtained by contacting: Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004, Attention: Prospectus Department (212-902-1171).

About Warner Music Group

Warner Music Group, with its broad roster of new stars and legendary artists, is one of the world's major music companies. The company is home to a collection of some of the best-known record labels in the music industry including Atlantic, Bad Boy, Elektra, Lava, Maverick, Nonesuch, Reprise, Rhino, Sire, Warner Bros. and Word. Warner Music International, a leading company in national and international repertoire operates through 37 affiliates and numerous licensees in more than 50 countries. Warner Music Group also includes Warner/Chappell Music, a global music publisher, with a catalog of more than one million copyrights worldwide. For more information about Warner Music Group, visit our corporate website at www.wmg.com.

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Media Contact:
Will Tanous
212-275-2244
will.tanous@wmg.com

Investor Contact:
Jeremy Zweig
646-805-2805




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