No.2010012 August 11, 2010 Press Release Columbia Music Entertainment Issues Notice of Consolidated Business Results for First Quarter of Fiscal Year Ending March 2011 ～An Excellent Start for Our Centennial Year ～ Columbia Music Entertainment Inc. (hereinafter CME; Head Office: Minato-ku, Tokyo; Representative Executive Officer/President and Chief Operating Officer (COO): Yasuharu Hara) today gives notice that it has issued its consolidated business results indicating the Company’s overall performance for the first quarter of the fiscal year ending March 31, 2011 (April 1 2010 ~ June 30, 2010). Consolidated Business Performance for FY 2010Q1 1. Sales Revenue During the first quarter under review, the Company’s consolidated sales totaled 3,879 million yen (a decrease of 5.8% compared with the same period of the previous fiscal year). Although sales of digital distribution focused on J-Pop titles recorded an increase, there were fewer number major titles released when compared with prior year and also sales declined in the P&D (Production & Distribution) Business. 2．Profit & Loss Regarding the profit and loss situation, sales of digital distribution products and Custom Sales Business both increased and overall expenses in respect of executive compensation, staff salaries and retirement benefits declined. As a result, the Company reported an operating profit for the quarter under review of 167 million yen (compared with an operating loss of 198 million yen for the same quarter of the previous fiscal year). Since the disclosure of quarterly results began in the fiscal year ending March 2005, this year marks the first time that the Company has recorded an operating profit for the first quarter. Furthermore, the Company reported an ordinary profit of 162 million yen (compared with an ordinary loss of 210 million yen for the same quarter of the previous fiscal year) and an overall net profit for the quarter under review of 175 million yen (compared with an overall net loss of 193 million yen for the same quarter of the previous fiscal year). The recorded music industry continues to face contraction and the overall situation remains severe. However, the company places utmost significance in achieving continuous profitability through termination of non-profitable operations and establishing a profit-generating constitution. No.2010012 August 11, 2010 We will continue to implement a variety of measures that include focusing our corporate resources onto fields of strength and fields of growth, optimizing the size of the workforce, as well as making cuts in directors’ compensation and staff salaries. Moreover, by building our strategic partnership with Faith as a member of the Faith Group, we will endeavor to improve our line-up of music-related services and move forward with our plans to realize business synergies. In October of this year CME will celebrate the 100th anniversary of its foundation. To mark this occasion, the Company will formally change its corporate name to Nippon Columbia Co., Ltd., the name under which it had previously been familiar to and respected by Japanese music lovers over the course of many decades. In addition, the Company is currently developing a variety of 100th anniversary projects, which include titles to commemorate the centenary. Looking ahead to the start of our second century as a music company, we are determined to return to our point of origin of music production and to push forward with our business with renewed vigor. Full Year Consolidated Business Result Forecast for FY 2011 At the present time, no revision is being made to the consolidated business result forecast for FY 2011 (April 1, 2010 ~ March 31, 2011) issued on May 12 of this year, in which we forecast a full year operating profit of 200 million yen, an operating profit of 180 million yen and a net profit for the year of 50 million yen. Artists and Titles Making Major Contributions to Sales (During the Current First Quarter) ■ Music Products Kiyoshi Hikawa— Hikawa Kiyoshi Enka Meikyoku Collection 12 ~Shamisen Tabi Garasu~ Kazusa Wakayama— Yu no Machi Miren Hitomi Idemitsu— Onna Shichirin Kagurazaka Kaela Kimura— 5years, Ring a Ding Dong Clammbon— 2010 Chiharu Matsuyama— Zutto Issho Kegawa no Maries— Kegawa no Maries THE IDOLM@STER Series Tenso Sentai Goseiger Series No.2010012 August 11, 2010 ■ Visual Products Kiyoshi Hikawa— Hikawa Kiyoshi Special Concert 2009 Kiyoshi kono Yoru Vol. 9 Miitsuketa! Oisu! Inai Inai Baa! - Bun Bun Bukyu-N! Inai Inai Baa! - Ohisama to Dance ■ Digital Distribution Kaela Kimura— Butterfly, Ring a Ding Dong, You bet!!, Riruha Riruha, Odoru Pompokorin Yo Hitoto— Hanamizuki Tamurapan— Theme of Okami Shonen Ken (Lotte Fit’s TV CM song) Yoshinori Karawatari— Rokko Oroshi Tenso Sentai Goseiger Series Dragon Ball Kai Series ■ Video Game Products Nintendo DS Software Kirei Zukin Seikatsu ■ Direct Sales Hibari Cover Song Collection Misora Hibari Showa wo Utau Funamura Toru ga Utau Aiseki no Fu Enka no Hanamichi <Others> ■ P&D (Production & Distribution) ◇ YOSHIMOTO R and C Co., Ltd. ASH— A-Z Vol. 1 22-20s— shake/shiver/moan Hiroshi Shinagawa & Suberers/Air Visual Band/Suzanne x Suzanne’s— Salary☆ man/Dai-San no Otoko/Red Eye Matsumoto Hitoshi & others— Matsumoto Hitoshi no Suberanai Hanashi ~ The Golden 4 No.2010012 August 11, 2010 ■ Outline of Columbia Music Entertainment Inc. Company Name: Columbia Music Entertainment Inc. Address: Edomizaka Mori Bldg., 4-1-40 Toranomon, Minato-ku, Tokyo Representative: Representative Executive Officer/President & COO Yasuharu Hara Business contents: Production, advertising and sales of music software, game software, etc., and music artist management Paid-in capital: ¥1,000,000,000 URL: http://columbia.jp ■ For further information concerning this subject please contact: Columbia Music Entertainment, Inc. PR/ER Group, Corp. Planning & Communication Dept. Email: [email protected] ### .