Approval granted by the merger control authorities for Sony Music Entertainment's participation in DEAG Classics

DEAG Deutsche Entertainment AG (ISIN DE000A0Z23G6) informs that as of today all conditions precedent have been met for Sony Music Entertainment's 49 percent participation in DEAG Classics AG. In particular the merger control authorities have cleared the transaction. The participation of Sony Music Entertainment in the European classic business of DEAG therefore can be carried out as planned with effect of August 6, 2009.

Peter Schwenkow, CEO of DEAG, will also remain CEO of the future cooperative venture, in which DEAG continues to hold 51 percent of the shares. The new partners in the classical business will now be able to market artists together internationally in the context of a 360 degree approach. This offers DEAG Classics considerable potential for the expansion of its activities within Europe and beyond. As a result the company also expects positive effects for the artist acquisition and loyalty. The response to the transaction from the artist circle already has been exceedingly positive. Of course DEAG Classics will continue to completely fulfil all existing contracts with artists and other music companies.

In addition to the operative and strategic advantages, the transfer of shares will lead to positive effects for the results, liquidity and equity ratio in the business year 2009.