Columbia Music Entertainment's Consolidated Results for FY 2002
Continuing Progress and Profitability in FY 2003

Columbia Music Entertainment Inc. today announced that consolidated sales for FY 2002 (ending March 31, 2003) totaled 29.8 billion yen. Full year operating income was 22 million yen, and ordinary income was 6 million yen. As a result of one-time costs related to restructuring and cost reduction efforts, the Company reported a net loss after tax of 1,250 million yen. All of these results are slightly ahead of projections that were announced earlier by the Company. The Company's results are a major improvement from prior years. Columbia Music Entertainment has returned to profitability on an ordinary income basis at 6 million yen for the first time in 7 years.

The major factor contributing to the Company's profitable operating results was the priority placed on producing hits in the J-Pop and J-Rock fields. Yo Hitoto, one of our most successful new talents, achieved smash hits with her single Morainaki and her album Tsukitenshin. In the Enka and Kayokyoku fields, Kiyoshi Hikawa's Enka Meikyoku Collection 2-Kiyoshi no Zundoko-Bushi was a top-selling album, while releases by Sumi Tagawa and Maiko Takigawaalso made significant contributions to the Company's sales.

In video content, a number of animation works in the Tottoko Hamutaro series, the music video All for You Live by Janet Jackson, the TV movie Poppy the Performer and the Nontan series were all significant contributors to the Company's sales.

FURUSATO, a compilation using material from historic score catalogues, gained favorable public attention as a Columbia work, while SCENE went to the number one spot in the Western Music compilation charts at a famous store in Tokyo.

More than a year has passed since the Company began to implement the Nippon Columbia Business Revitalization Plan, reorganizing its music divisions to build revenue, reducing costs, and shedding non-core assets. For the future, the entire Columbia group of companies continues to improve profits, enhance revenue and reduce costs that are the Company's most important priorities. The Company continues to implement the various measures set out in the Business Revitalization Plan, such as streamlining the organization to achieve more effective utilization of management and marketing resources, creating an environment conducive to producing hits, and establishing an efficient cost structure. In addition, by making improvements to our management constitution and promoting and relocating staff on the basis of ability, CME is poised to continue its progress to greater profitability in FY 2003.

Forecast for FY 2003
The music software industry is expected to continue to experience difficult market conditions in the year ahead. The entire Columbia Group remains united in thoroughly revitalizing the Company. Accordingly, as of the present time, our forecast for the Group's consolidated business results for FY 2003 is revenues of 31 billion yen, operating income of 600 million yen, ordinary income of 500 million yen and net income after tax of 300 million yen.