Music Industry Update June 2002

1
Music Industry UpdateJune 2002

• Thomas Braum
• Senior Vice President
• and Chief Financial Officer
• [phone], Ext.718
• Greg Mize
• Vice President
• Investor Relations
• [phone], Ext.211

2
United States - Music Industry Fiscal Quarter 4
Results

• U.S. unit sales decreased by 13.2 from 185.5
  million units in fiscal 2001 Q4 to 161.0 million
  units in fiscal 2002 Q4. Configuration data
  reveals that album sales decreased by 10.3 and
  singles by 63.1.
• The mass channel was relatively flat in Q4 of
  2002 relative to 2001. Unit sales decrease by
  0.3 from 52.7 million units in fiscal 2001 Q4 to
  52.5 million units in fiscal 2002 Q4. Chain
  music retailers experienced a unit decrease of
  19.2 and independent stores a decrease of 17.6.
• The mass channel accounted for 32.6 of total
  unit sales for fiscal 2002 Q4 - an increase of
  4.2 share points from 28.4 in 2001. Chain store
  share decreased by 3.8 points from 53.9 in 2001
  to 50.1 in 2002.

Handleman Fiscal Quarter 4 Unit Sales
(Feb/Mar/Apr) (in thousands of units)
Unit Sales from Monday, January 28, 2002 to
Sunday, April 28, 2002.
Source SoundScan
Channel Share of Total Unit Sales - Fiscal 2002 Q4
3
Canada - Music Industry Fiscal Quarter 4 Results

• The Canadian music market was down 7.9 from 11.8
  million units in fiscal 2001 Q4 to 10.9 million
  units in fiscal 2002 Q4.
• Album sales decreased by 7.6 from 11.7 million
  units in fiscal 2001 Q4 to 10.8 million units in
  fiscal 2002 Q4. Single sales decreased by 41.6.
• Cassette albums decreased by 36.1 from 436,000
  units in fiscal 2001 Q4 to 279,000 units in
  fiscal 2002 Q4. CD albums decreased by 6.5.
• The mass channel accounted for 24.2 of unit
  sales - an increase of 6.3 percentage points from
  17.9 share in fiscal 2001 Q4.

Handleman Fiscal Quarter 4 Unit Sales
(Feb/Mar/Apr) (in thousands of units)
Unit Sales from Monday, January 28, 2002 to
Sunday, April 28, 2002.
Source SoundScan Canada
Channel Share of Total Unit Sales - Fiscal 2002 Q4
4
United Kingdom - Music Industry Fiscal Quarter 4
Results

• The U.K. music market experienced a decrease of
  4.3 from 45.4 million units in fiscal 2001 Q4 to
  43.4 million units in fiscal 2002 Q4.
• Album sales were relatively flat increasing by
  0.9 from 30.5 million units in fiscal 2001 Q4 to
  30.8 million units in fiscal 2002 Q4. Single
  sales decreased by 15.1.
• The album configuration represented 70.9 of
  total unit sales - an increase from 67.2 in
  fiscal 2001 Q4. Note that last quarter (included
  Christmas), albums represented 83.7 of total
  unit sales. Singles represented 29.1 of total
  unit sales in fiscal 2002 Q4.

Handleman Fiscal Quarter 4 Unit Sales
(Feb/Mar/Apr) (in thousands of units)
Unit Sales from Sunday, January 27, 2002 to
Saturday, April 27, 2002.
Source CIN - The Official UK Chart Company
Configuration Share of Total Unit Sales - Fiscal
2002 Q4
Source CIN - The Official UK Chart Company
5
New Release Schedule - Fiscal 2003 Quarter 1
(May/Jun/Jul)
May Various Artists Now Presents Off The
Hook Marc Anthony Mended Various Artists
Songs 4 Worship Kids I Sing Praises Tommy Lee
Never A Dull Moment Eminem The Eminem
Show June Soundtrack Osbourne Family Various
Artists Totally Hits 2002 Korn
Untouchables Will Smith Born To
Reign July Dave Matthews Band Busted
Stuff Uncle Kracker No Stranger to Shame Third
Eye Blind Crystal Baller