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Sony BMG Starts Compact Disc Recall/Exchange Program For XCP Content Protected CDs

SONY BMG Music Entertainment today announced the commencement of a mail-in recall program through which consumers can exchange compact discs CDs containing XCP content protection software for a replacement version of the same CD without the XCP software, in addition to receiving MP3 files of that CD

Overview of Actions to Date on XCP Software

SONY BMG Music Entertainment today announced the commencement of a mail-in program through which consumers can exchange compact discs (CDs) containing XCP content protection software for a replacement version of the same CD without the XCP software, in addition to receiving MP3 files of that CD.

XCP content protection software is included on 52 SONY BMG titles. Further information about the exchange program, including an FAQ for consumers about XCP technology and a list of titles may be found at the website dedicated to providing consumers with information on this subject, http://cp.sonybmg.com/xcp.

Consumers can also download a software update from SONY BMG's website at http://cp.sonybmg.com/xcp. This update addresses the security vulnerabilities associated with XCP software.

In addition to consulting the list of titles at the website, consumers can identify titles with XCP content protection by checking the back of the CD packaging. If there is a black and white table with the words "Compatible With", and if the URL in that table ends with the letters "XCP" (http://cp.sonybmg.com/xcp), that indicates the disc contains the XCP software.

Information on the CD Exchange Program
Consumers who wish to exchange their XCP content protected CDs or also receive MP3 files of the titles in addition to their replacement CDs should visit http://cp.sonybmg.com/xcp for a list of titles and versions, specific instructions and shipping information. There will be no charge to consumers for shipping in either direction.

In addition to providing replacement CDs by mail, SONY BMG is making available MP3 files to consumers who are exchanging their XCP content protected CDs. Consumers who choose to receive MP3 files will receive an e-mail with a link to the MP3 downloads upon SONY BMG's receipt and verification of their XCP CDs.

SONY BMG's Actions to Date Regarding XCP Software
SONY BMG has taken the following actions with respect to XCP software:

1. SONY BMG has ceased manufacturing compact discs with XCP software.

2. SONY BMG is working with its retail partners to withdraw compact discs with XCP software from distribution and retail chains. It has asked retailers to cease sale of those discs and to return them to SONY BMG. This withdrawal program has been and is being widely communicated.

3. SONY BMG is moving as quickly as the manufacturing process will allow to replace all compact discs with XCP that are present in the chain of distribution with non-copy protected discs.

4. As announced today, SONY BMG has commenced an exchange program whereby any consumer who has purchased an XCP-protected compact disc will be able to receive a replacement, non-copy protected disc and MP3 files of the titles.

5. Consumers can download a software update from the SONY BMG's website at http://cp.sonybmg.com/xcp/english/updates.html. The effect of this update is to "uncloak" the XCP components on the user's hard drive, thereby allowing anti-virus software to detect it and block any viruses from exploiting it.

6. SONY BMG is will soon make available a revised and secure procedure for consumers to uninstall the XCP software from their computers. The removal of XCP (and the downloading of the software update) does not affect the consumer's ability to play and use any music from an XCP-protected compact disc already transferred from the disc to the computer.

7. In addition, Microsoft and the major anti-virus companies have been made aware of the security issues that have been raised. The anti-virus companies have issued updates to their customers to address potential vulnerabilities arising from the installation of XCP software.

SONY BMG's Commitment to User Privacy and Software Security
SONY BMG is committed to testing, verifying and disclosing to consumers, its use of any copy protection technology.

SONY BMG is reviewing all aspects of its content protection initiatives to be sure that they are secure and user-friendly for consumers. As the company develops new initiatives, it will continue to seek new ways to meet consumers' demands for flexibility in how they listen to music, while protecting intellectual property rights.

Background Regarding XCP Software
Security concerns have been raised regarding the use of CDs containing XCP software in computers. These issues have no effect on the use of these discs in conventional, non-computer-based CD and/or DVD players. This content protection technology was provided by a third-party vendor, First4Internet, and was designed to prevent unlimited copying and unauthorized redistribution of the music on the disc.

SONY BMG MUSIC ENTERTAINMENT is a global recorded music joint venture with a roster of current artists that includes a broad array of both local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. SONY BMG is 50% owned by Bertelsmann A.G. and 50% owned by SONY Corporation of America.

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