SOURCE: Bug Music

July 31, 2006 12:34 ET

Bug Music Partners With Crossroads Media to Expand Its Client Services and Innovative Solutions in Music Publishing

Crossroads Media Makes Significant Equity Investment in Bug Music to Support Continued Growth

LOS ANGELES, CA -- (MARKET WIRE) -- July 31, 2006 -- Bug Music, one of the world's largest independent music publishers, enters its 32nd year by partnering with Crossroads Media, which has made a significant equity investment in Bug, it was announced today by Dan and Fred Bourgoise, partners of Bug Music. Bug Music will use the capital infusion to continue and expand upon its mission of focusing on its songs, songwriters and music publishers with personalized administration and innovative creative services. Financial terms of the deal were not disclosed. Crossroads Media is a partnership between Tom McGrath, former President of Paramount Enterprises, and Spectrum Equity Investors, a media and entertainment-focused private equity firm.

In conjunction with the new partnership, Dan and Fred Bourgoise will step down from their day-to-day duties at Bug and, along with Crossroads Media, have named John Rudolph as CEO, and have promoted David Hirshland, an 11-year Bug veteran, to President. Rudolph is formerly head of Music Analytics, a music publishing consulting firm, and previously the CFO of Windswept Pacific. Mark Anders, current Managing Director of Bug Limited based in the U.K., has been named President of International. All other senior executives remain with the company. Dan and Fred Bourgoise will provide ongoing consultation to the company and serve on the Board of Directors alongside McGrath and representatives from Spectrum.

Noted Rudolph: "Dan and Fred have built a company with an independent ethos over the last 30 years that values at its core the songs and songwriters it represents by providing efficient and aggressive client services. I am honored by the trust and confidence placed in me by Dan and Fred and look forward to leading this very special business and its staff through its next stage of growth."

Dan Bourgoise commented, "This investment by Crossroads Media will allow Bug to maintain its core values of service to the songwriters and excellence in publishing while giving it the flexibility to adapt to the rapidly changing marketplace, as well as take advantage of new opportunities that arise almost daily. There has never been a more exciting time to be in the music publishing business." Added Fred Bourgoise, "I look forward to the next evolution of Bug as the music world completes this revolutionary shift from analog to digital technologies and from physical to virtual distribution. I feel inspired by this new association with Crossroads and Spectrum and am delighted to continue to advise and work for the writers, publishers, managers and attorneys that I have had the pleasure of knowing over the last three decades. This company has been our life's work and we feel this partnership and the news management appointments only strengthen and extend that legacy."

Tom McGrath, senior managing director of Crossroads, said, "Bug Music is one of the world's premiere independent music publishers with an unparalleled reputation for integrity and service to its many clients. I am delighted to be in business with Dan and Fred whose personal reputations and leadership abilities know no peer. I am particularly pleased that John Rudolph has agreed to join us as CEO. John's experience with Windswept Pacific and his leading role in so many music acquisitions, investments and partnerships over the past few years while running Music Analytics will be invaluable to Bug."

About Bug Music

Founded in 1975, Bug is one of the world's leading music publishers. Headquartered in Los Angeles, with offices in Nashville, New York, London and Munich, Bug owns and/or manages approximately 120,000 copyrights. The Company has built a strong reputation as the "songwriter's" publisher by vigorously supporting copyrights of songwriters and publishers and providing personalized administrative and creative services. Clients include the estates of Johnny Cash, Willie Dixon, Muddy Waters, John Lee Hooker, Del Shannon and Stevie Ray Vaughan, as well as classic and contemporary writers and artists such as Morningwood, Iggy Pop, Ryan Adams, Wilco, Peaches, Los Lobos and The Guess Who. Bug songs currently appear throughout the Billboard charts and can be heard in ad campaigns by Levi's, Lincoln Mercury and Carnival Cruise Lines among others.

About Crossroads Media

Crossroads Media is a Los Angeles-based strategic partnership between Spectrum Equity Investors and Mr. Thomas McGrath. Mr. McGrath is the former President of Paramount Enterprises, a role in which he had responsibilities for many activities of that division, including: Famous Music (music publishing), Paramount Parks (theme parks), Famous Players (movie theaters), and Viacom Consumer Products, encompassing licensing, merchandising, themed entertainment, and theatrical production. In addition to serving as President of Paramount Enterprises, Mr. McGrath also served as Chief Operating Officer of Viacom Entertainment Group, which included Paramount Pictures and Paramount Television.

About Spectrum Equity Investors

Spectrum Equity Investors is a private equity firm specializing in investments in the media, communications, and entertainment industries throughout North America and Western Europe. Founded in 1994 and based in Boston and Menlo Park, Spectrum has over $4 billion in capital under management. Current portfolio companies include AMC Entertainment, Apprise Media, CBD Media, Classic Media, Eutelsat S.A., NEP, and Patriot Media and Communications. Additional information on Spectrum can be found at www.spectrumequity.com.

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