Bug Music Acquires Windswept Music Publishing and Trio/Quartet Catalog

Acquisition and merger marks the creation of the largest independent music publisher in North America

Los Angeles, (July 9, 2007) – Bug Music, Inc., one of the world's largest independent music publishers, continues to expand its catalogs and services to songwriters, publishers and the creative licensing community with the acquisition of Windswept Holdings, LLC and T/Q Music, Inc., two of the largest independent music publishers in North America. The acquisition, announced today by John Rudolph, CEO of Bug Music, Inc. and Ichiro Asatsuma, Chairman of Fujipacific Music, Inc., a subsidiary of Fuji Television Network, Inc., creates a wider offering of innovative creative services for Bug's and Windswept's songwriters and publishers and a broader, more diverse catalog of compositions for licensors in TV, film, advertising, video games, and new media. Financial terms of the deal were not disclosed.

"The Windswept, Trio/Quartet and Hitco songs and writers and the talented management and staff of Windswept are unique and world-class; the combination of Windswept with Bug brings together two similarly sized and like-minded companies that believe in great songs, songwriters and publishers with a shared independent spirit," said John Rudolph, CEO of Bug Music. "The sheer diversity of the Bug/Windswept catalog, from classics to today's most important writers and songs, ranging from What a Wonderful World, I Walk the Line and I've Got the World on a String to Ticks (Brad Paisley's current #1) and from Sean Garrett, this year's BMI Songwriter of the Year, to Ryan Adams, creates a very special and rare place in the current music publishing business that we look forward to nurturing."

Ichiro Asatsuma, Chairman of Fujipacific Music, Inc., Japan's largest independent music publisher, and the former parent of Windswept, said "I see this as a unique opportunity to launch a new strong, competitive and well-funded independent music publisher which can maintain a global network to serve the best interests of the creative community. I look forward to expanding the business and creative relationship between Fujipacific Music and Bug Music as we start to work together in Japan and Southeast Asia."

Windswept was formed in 1999 by veteran music publishers Evan Medow, Jonathan Stone and Fujipacific. The company was bolstered by the 2003 acquisition of the Trio/Quartet catalog from Jerry Leiber and Mike Stoller. The Windswept and Trio/Quartet catalogs include approximately 50,000 copyrights.

Windswept consistently ranks as a top 10 Billboard music publisher, and has been on the recent charts with blockbuster artists and music icons such as Gwen Stefani, Destiny's Child, Beyonce, Keith Urban, Corinne Bailey Rae, Vince Gill, Joss Stone, Michael W. Smith, Snow Patrol, Gretchen Wilson, Kings Of Leon, Mary J. Blige, Fergie, Enrique Iglesias, Il Divo, Josh Groban and many others.

The Windswept and Trio/Quartet catalogs include such classic titles as:

• (You Give Me) Fever
• Wheel in the Sky
• Summer in the City
• Cool Jerk
• Happy Together
• I Got You (I Feel Good)
• Splish Splash
• Sea Of Love
• Rich Girl
• Let My Love Open The Door
• The Shoop Shoop Song (It's In His Kiss)
• Leader of the Pack
• Chapel of Love

and such contemporary titles as:

• Waterfalls (TLC)
• The Real Slim Shady (Eminem)
• In Da Club (50 Cent)
• Jesus Take The Wheel (Carrie Underwood)
• Breakaway (Kelly Clarkson)
• What Hurts The Most (Rascal Flatts)
• Settlin' (Sugarland)
• I Love You (Martina McBride)
• Something Like That (Tim McGraw)
• Yeah (Usher)
• Survivor (Destiny's Child)
• The Way You Move (Outcast)
• Ready Steady Go (Paul Oakenfold)
• Jerusalem (Matisyahu)
• I Got Money Now (Pink)
• Goodies (Ciara)

John Rudolph, who was recently elected to the Board of the National Music Publisher's Association, will continue to serve as Chief Executive Officer of the new, combined Bug/Windswept Music, with David Hirshland also continuing in his role as President and Mark Anders continuing his role as President of International.

Bug Music was advised by Latham & Watkins and Jeff Sacharow, Esq. of Los Angeles, with financial advisory services by Kirsten Wilson, Music Analytics/W Group. The sellers were represented by Loeb & Loeb LLP, Sidley Austin LLP and Mayer, Brown, Rowe & Maw LLP.

About Bug Music

Founded in 1975, Bug Music is one of the world's leading music publishers. Bug is headquartered in Los Angeles, with offices in Nashville, New York, London and Munich. With the acquisition of Windswept and Trio/Quartet, Bug now owns and/or manages approximately 250,000 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, Woody Guthrie, 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. Bug is independently owned by Crossroads Media, Dan Bourgoise, Fred Bourgoise and management. Crossroads Media shareholders include Bug Chairman Tom McGrath, Spectrum Equity Investors and Columbia Partners Private Capital.

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 growing and profitable service companies, with particular expertise in the media, communications, and entertainment industries. Founded in 1994 and based in Boston and Menlo Park, Spectrum currently manages in excess of $4 billion. Representative media and entertainment investments include AMC Entertainment, Apprise Media, CBD Media (Local Insight Media), Classic Media (Entertainment Rights), Eutelsat, and Patriot Media and Communications. Additional information on Spectrum can be found at www.spectrumequity.com.

About Columbia Partners Private Capital

Columbia Partners Private Capital is the direct investment unit of Columbia Partners, L.L.C. Investment Management, a Washington, D.C. based registered investment advisor managing over $3 billion. Additional information on Columbia Partners can be found at www.columbiaprivatecapital.com.

Contact Info

For licensing opportunities, please contact Pamela Lillig at Bug, Pamela@BugMusic.com, (323-969-0988) or Lola Jordan, Ljordan@WindsweptPacific.com, (310-550-1500).

For more information about the principals visit their websites:

Bug Music - www.BugMusic.com
Windswept Holdings - www.windsweptpacific.com
Fujipacific Music, Inc. - www.fujipacific.co.jp

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