Concord acquires Telarc!

Acquisition Strengthens Concord's Position as One Of The Industry's
Preeminent Independent Record Companies

Beverly Hills, CA - The Concord Music Group today announced the
acquisition of Telarc International Corporation. The Cleveland, Ohio-
based Telarc has been a leader in classical and jazz recordings for
over 25 years. Included in the transaction is Heads Up
International, which became part of Telarc in 2000. Heads Up is
known for its highly successful catalog of contemporary instrumental
and world music. Following the recent acquisition of Fantasy, Inc,
this transaction further bolsters the Concord Music Group as one of
the world's largest and most dynamic independent record companies.

Founded in 1977 by musicians and former teachers Bob Woods and Jack
Renner, Telarc has amassed 46 GRAMMY(tm) Awards and a catalog of
more than 1,000 master recordings ranging from classical and
classical-crossover to jazz and blues, from such legendary artists
as Dave Brubeck, George Shearing, Ray Brown, Andre Previn, and Oscar
Peterson. The current jazz roster includes celebrated
singer/guitarist John Pizzarelli and vocalist Tierney Sutton.
Telarc's extraordinary classical roster includes landmark recordings
from the Atlanta Symphony Orchestra and Chorus, the Cincinnati
Symphony and Cincinnati Pops Orchestras, and the Mormon Tabernacle
Choir. Artist-oriented and known throughout the industry for sonic
innovation and super-high quality audio, Telarc became the first
label to commercially use digital recording in 1978, and, in 1983,
was one of the first to launch compact discs in a joint effort with
Sony Corporation. In 2004, Telarc was named Label of the Year by
Gramophone Magazine in the UK.

Heads Up International's roster, headed by founder and label
president Dave Love, includes internationally respected artists such
as Spyro Gyra, Najee, Michael Brecker, The Yellowjackets, and highly
acclaimed world music artists Ladysmith Black Mambazo and Hugh
Masekela. Both Telarc and Heads Up have a significant number of
recordings in high definition and Super Audio Compact Disc (SACD)
format, based on the superior Direct Stream Digital recording
technology.

"The cultures of our companies are very similar and we see lots of
synergies through the merging of our talented staffs and our mutual
goals," says Telarc president Bob Woods. "Glen Barros and I have
known each other for some time and I respect the creative indie
mentality our companies share, which allows us to respond quickly to
the constant change and abundant opportunities in our industry.
We'll be a larger entity, but we won't move slowly. Besides," Woods
added, "Telarc and Heads Up are certain that they will kick
Concord's butt in the company softball game."

Glen Barros, president and CEO of the Concord Music Group, said, "We
are incredibly proud to welcome Telarc and Heads Up to the Concord
family, as we truly admire these great labels. Telarc's history of
impeccable audio and musical standards has made it one of the
world's most respected independent labels and we are honored to be
the ones chosen to safeguard this rich legacy. As with all great
record companies, Telarc and Heads Up are built on a solid
foundation of great artists and great people. We truly look forward
to working alongside Bob Woods, Dave Love, and their talented team
and know that they will make a great contribution toward the
achievement of our mutual goals." Added Barros, "The only thing I'm
worried about is how Bob is going to take the news when he finds out
that there is no company softball game."

The Concord Music Group is one of the world's largest independent
record and music publishing companies, committed to offering
innovative, high-quality popular music. Concord Music Group's family
of labels includes Peak, Playboy Jazz, Stretch, Concord Picante, and
Fantasy Records, which is home to such historic imprints as
Milestone, Pablo, Prestige/New Jazz, Riverside/Jazzland [one word],
Stax/Volt/Enterprise, Specialty, Takoma, and many more. The combined
catalog features over 3,000 albums from such legendary artists as
Charlie Byrd, Rosemary Clooney, Herb Ellis, Stan Getz, Mel Torme,
John Lee Hooker, Little Richard, Gerry Mulligan, Chet Baker, Miles
Davis, Bill Evans, Ella Fitzgerald, Isaac Hayes, Albert King,
Thelonious Monk, Joe Pass, Art Pepper, Otis Redding, Vince Guaraldi,
Sonny Rollins, Sarah Vaughan, Sam Cooke, Count Basie, and Creedence
Clearwater Revival, just to name a few. In 2004, Concord Records, in
association with Starbucks Hear Music, released Ray Charles' final
recording, Genius Loves Company, winner of 8 GRAMMY(tm) Awards
including Album of the Year. The label's current roster includes
GRAMMY(tm) Award-winning artists Gary Burton, Chick Corea, Sergio
Mendes, Ozomatli, Eddie Palmieri, and Poncho Sanchez, among many
others. Peak Records, a joint venture with Concord, is an industry
leader in smooth jazz and R&B and features a stellar artist roster
including The Rippingtons, Gerald Albright, David Benoit, LaToya
London, and Lee Ritenour.

Concord's acquisition of Fantasy late last year paved the way for
the re-signing of rock icon John Fogerty after years of estrangement
from Fantasy. As founder and songwriter of the legendary band
Creedence Clearwater Revival, and throughout a stellar solo career,
Fogerty has written some of rock music's most enduring classics such
as "Bad Moon Rising," "Proud Mary," and "Fortunate Son." The Long
Road Home - The Ultimate John Fogerty - Creedence Collection, was
released on November 1st, 2005.

Concord Music Group is owned by Act III Communications and Tailwind
Capital. HSBC Bank USA, N.A. and JPMorgan Chase provided debt
financing for this transaction.