Major Record Deal

21 May 2007 07:00

X-Phonics plc21 May 2007 X-Phonics Plc ("X-Phonics" or the "Company") 21 May 2007 Major Record Deal Record Label X-Phonics (AIM: XPH.L), the independent music and media group, is pleased toannounce a ground breaking contract to licence The Attic Lights toUniversal-Island Records Limited. The Attic Lights were signed to X-Phonics Music Ltd in November 2006 and are a 5member band based in Glasgow. The Attic Lights sound is a mix of classic 60'sBeach Boys meets Snow Patrol and although the band have been together for lessthat two years they have already shown a measurable level of success, regularlyplaying on the Scottish festival scene and receiving good support from suchradio stations as XFM and Radio 2. The Company has licenced the band to Universal-Island Records in a 5 album deal.Under this arrangement Universal-Island have the exclusive rights to acquire therecordings produced for and by the band for exploitation on a worldwide basis.To date the Company has received an advance and fees in relation to theproduction of the bands debut album. This has been delivered toUniversal-Island Records having been recorded during the last 3 months in TheMixing Rooms in Glasgow. In addition the Company will receive royalties based onfuture worldwide sales. John McLaughlin, Chief Executive, said, "This is a significant signing for our record label demonstrating that we havethe ability to identify artists and produce records that are of real interest tothe major record labels. We are beginning to create a real buzz in the industrythat we hope will create a basis for major record labels to work with us closelyin the future. " For further information please contact, John McLaughlin, Chief ExecutiveX-Phonics PlcTel. 020 8987 0800 Mike Hosie, Finance DirectorTel. 020 8987 0810 Notes to Editors X-Phonics is an independent music and media group that has and is developingopportunities across all aspects of the industry in a way that creates andmaximises returns from the relationships between its artists and writers. X-Phonics has a number of artists who have been contracted to the Companybecause of their potential to be developed within the business for the longerterm or because they are perceived to have broader appeal which can be deliveredearlier to the market in partnership with larger record labels. Working with the Company's artists are a number of song writers who cancollaborate or who work individually and who also work on external projects. TheCompany has signed a number of well known writers who bring with them cataloguesof previous work which can be further exploited by the Company and who willattract other commissions and artists with whom to work. It is the Company'sintention to build a rosta of writers and to own and build a catalogue of songswhich will generate revenues over the longer term. The Company has two additional activities and resources that both support therecord label and publishing activities and that generate external income. It has an audio recording facility which is made available to its artists andwriters to facilitate and support the development of in-house projects as wellas being made available to external chargeable clients. It also has access to astate of the art, fully specified recording studio facility which complimentsthe Company's internal facilities. There is also a broadcast quality video editing facility which allowspromotional requirements of the artists to be met in a cost effective and fullycontrolled manner as well as offering the opportunity of being commissioned forthe production of external video and film work. The synergistic nature of the business is worth re-iterating. Not only does eachof the business areas generate projects and revenues in their own right butwherever possible complimentary revenue streams are sought through theinvolvement of other aspects of the Company in the projects. As an example, anartist can be working with the Company's writers allowing the Company to sharein the publishing revenues as well as in the record label revenues that accruefrom the promotion and marketing of the artist's album. Recording of the albumwould be completed using the Company's in-house recording facilities and ifappropriate a promotional video could be produced using the Company's videocapabilities. By adopting this business model the Company can maximise its opportunity ofrevenues or a revenue share at each stage of the artistic process. This information is provided by RNS The company news service from the London Stock Exchange