Music Industry Update September 2002

1
Music Industry UpdateSeptember 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 2003
Quarter 1 Results

• U.S. unit sales decreased by 14.2 from 181.4
  million units in fiscal 2002 Q1 to 155.6 million
  units in fiscal 2003 Q1. Configuration data
  reveals that album sales decreased by 11.1 and
  singles by 72.4.
• The mass channel experienced a decrease of 5.5
  relative to Q1 of last year. Sales decreased
  from 51.6 million units in fiscal 2002 Q1 to 48.8
  million units in fiscal 2003 Q1. Chain music
  retailers experienced a decrease of 15.8 and the
  independent music stores were down 25.8 relative
  to Q1 of 2002.
• The mass channel accounted for 31.3 of total
  unit sales for fiscal 2003 Q1 - an increase of
  2.9 share points from 28.4 in 2002. Chain store
  share decreased from 53.4 share to 52.5 share.

Handleman Fiscal Quarter 1 Unit Sales
(May/Jun/Jul) (in thousands of units)
Unit Sales from Monday, April 29, 2002 to Sunday,
July 28, 2002.
Source SoundScan
Channel Share of Total Unit Sales - Fiscal 2003 Q1
3
Canada - Music Industry Fiscal 2003 Quarter 1
Results

• The Canadian music market was down 20.7 from
  12.9 million units in fiscal 2002 Q1 to 10.2
  million units in fiscal 2003 Q1.
• Album sales decreased by 20.3 from 12.8 million
  units in fiscal 2002 Q1 to 10.2 million units in
  fiscal 2003 Q1. Single sales decreased by 59.8.
• The mass channel accounted for 24.9 of unit
  sales - an increase of 7.9 percentage points from
  17.0 share in fiscal 2002 Q1.

Handleman Fiscal Quarter 1 Unit Sales
(May/Jun/Jul) (in thousands of units)
Unit Sales from Monday, April 29, 2002 to Sunday,
July 28, 2002.
Source SoundScan Canada
Channel Share of Total Unit Sales - Fiscal 2003 Q1
4
United Kingdom - Music Industry Fiscal 2003
Quarter 1 Results

• The U.K. music market was relatively flat with an
  increase of 0.2 from fiscal 2002 Q1 to fiscal
  2003 Q1. Unit sales of chart product increased
  from 41.1 million units to 41.2 million units.
• Album sales increased by 3.2 from 29.0 million
  units in fiscal 2002 Q1 to 29.9 million units in
  fiscal 2003 Q1. Single sales experienced a
  decrease of 6.9.
• The album configuration represented 72.5 of
  total unit sales - an increase from 70.4 in
  fiscal 2002 Q1. Singles represented 27.5 of
  total unit sales in fiscal 2003 Q1.

Handleman Fiscal Quarter 1 Unit Sales
(May/Jun/Jul) (in thousands of units)
Unit Sales from Sunday, April 28, 2002 to
Saturday, July 27, 2002.
Source CIN - The Official UK Chart Company
Configuration Share of Total Unit Sales - Fiscal
2003 Q1
Source CIN - The Official UK Chart Company
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New Release Schedule - Fiscal 2003 Quarter 2
(Aug/Sep/Oct)
August Various Artists Kidz Bop 2 BBMak Into
Your Head Lee Ann Womack Something Worth
Leaving Behind Dixie Chicks Home September Aaro
n Carter Another Earthquake Travis Tritt
Strong Enough Monica Monica Lifehouse
Stanley Climbfall Elvis Presley Elvis 30 1
Hits October Rolling Stones Hits
Collection O-Town 02 Brooks Dunn Hangin
Round The Mistletoe Bon Jovi Bounce Lee Ann
Womack Christmas Album