Sony BMG Settlement Approval

NOTICE OF PROPOSED CERTIFICATION AND SETTLEMENT APPROVAL HEARING FOR CLASS ACTIONS RELATING TO SONY BMG

This Notice may affect your rights. Please read carefully.

PURPOSE OF THIS NOTICE

To advise all persons in country-regionplaceCanada, who purchased a music CD from SONY BMG between August 1, 2003 and August 10, 2006, which carried XCP or MediaMax software, of the terms of the Proposed Settlement and describe the rights of purchasers with respect to the Proposed Settlement.

PROPOSED CERTIFICATION ORDERS

Class action lawsuits were commenced in CityOntario, StateBritish Columbia, and StateplaceQuebec in late 2005 and early 2006 against Sony BMG and other related Sony companies. These actions allege that the Media Max and XCP software fails to disclose limits on use of the CDs, violates the privacy rights of users, creates security vulnerabilities, and is difficult to uninstall.

The StateOntario class proceeding includes the claims of all settlement class members who reside outside the provinces of StateBritish Columbia and StateplaceQuebec. The StateQuebec and StateBritish Columbia class proceeding includes all of the class members who reside in the province of StateQuebec and StateplaceBritish Columbia respectively.

The Courts will be asked to certify the class actions, appoint representative plaintiffs, and

define the class in part, as:

“ all natural persons in Canada who purchased, received, came into possession of or otherwise used one or more MediaMax CDs and/or XCP CDs from August 1, 2003 through August 10, 2006 excluding the employees of Released Parties, SONY BMG resellers or distributors of the XCP CDs and MediaMax CDs, and any persons or entities that have previously executed releases discharging SONY BMG from liability concerning or encompassing any or all claims that are the subject of the Claims and the Subsequent Claims.”

TERMS OF THE PROPOSED SETTLEMENT

COMPENSATION will be paid to the class as follows until December 31, 2006:

(a) All XCP class members who return their CD to SONY BMG or provide SONY BMG with a receipt indicating the return or exchange of their CD to its place of purchase will receive a replacement hard copy CD of the same title without the software, and will be able to download from the SONY BMG website free MP3 digital music files of the same album.. XCP class members can then choose either of two additional compensation options: (i) a cheque for $8.40 and a promotional code exchangeable for one (1) free album download from among a list of approximately 200 available albums, or (ii) a promotional code exchangeable for three (3) of the free album downloads.

(b) MediaMax 3.0 class members who provide proof of purchase will be able to download free MP3 digital files of the tracks on the MediaMax CD.

(c) MediaMax 5.0 class members who provide proof of purchase will be able to download free MP3 digital files of the tracks on the MediaMax CD, and will receive a promotional code for one (1) free album download.

REMEDIAL undertakings by SONY BMG include:

(i) It will agree not to manufacture audio CDs with XCP or MediaMax Software in country-regionCanada, or to distribute CDs with XCP Software in country-regionplaceCanada.

(ii) It will agree to advise the Courts if and when it uses Content Protection Software on CDs sold in country-regionplaceCanada that has not been reviewed under the US Settlement Agreement.

(iii) It has affirmed, and an independent auditor has found, that it has not collected any personally identifiable information from consumers without consent, and it will agree to take commercially reasonable steps to destroy, at least every 10 business days, all IP addresses logged from hits made to its servers.

(iv) It waives certain provisions of the EULA associated with the XCP and MediaMax CDs.

CLASS COUNSEL FEES AND ADMINISTRATION

SONY BMG denies any wrongdoing or liability associated with the XCP and MediaMax Software. If the Settlement Agreement is not approved, the class actions will continue.

Class members will have until a date to be fixed by the Courts at the Settlement Approval Hearing to opt-out of the Settlement by sending, in accordance with the Courts' directions, a written election to do so. No class member will be able to opt-out after the date set by the court for doing so.

Class Counsel's fees and disbursements, and taxes thereon in an amount to be fixed by the court, will be paid by SONY BMG in addition to the other settlement terms.

THE SETTLEMENT APPROVAL HEARINGS

Each court will decide whether it should approve the proposed settlement as recommended by class representatives and class counsel. The hearings to decide whether to approve the settlement will be held at the court house:

In StateplaceOntario on September 21, 2006 at 9:00 a.m. at addressStreet361 University Avenue, CityToronto;

In StateplaceQuebec, on 28, 2006 10:00 a.m. at 1 Rue Notre Dame East, placeCityMontreal.

In placeStateBritish Columbia, on September 29, 2006 at 10:00 a.m. at addressStreet850 Burdett Avenue, CityVictoria..

Class members who do not oppose the proposed settlement need not appear or take any other action to indicate their desire to participate in the settlement at this time. At each hearing the court will consider objections to the proposed settlement by class members, but only if those objections are sent in written form, on or before September 18, 2006, as follows.

Sarkis Isaac

Howie & Partners

Chartered Accountants

addressStreet3063 Walker Road

CityplaceWindsor, On N8W 3R4

Tel: 519-250-8663

Fax: 519-250-1929

Email: sarkis.isaac@howieca.com

All written objections must contain the following information:

(i) the objector's name, address, telephone number, fax number and email address.

(ii) a brief statement of the nature of and reasons for the objection;

(iii) whether the person or a representative of the person intends to appear at the appropriate court hearing in person or by counsel, and if by counsel, the name, address, telephone number, fax number and email address of counsel.

FOR ADDITIONAL INFORMATION

If you believe you are a class member, please review and obtain complete copies of the settlement agreement and other material at http://cdtechsettlement.sonybmg.ca

QUESTIONS?

Questions to class counsel should be directed in writing or by telephone to one of the following:

StateplaceQuebec class members:

KUGLER, KANDESTIN (Attention; Pierre Boivin)

Tel: 514-878-2861 Fax: 514-875-8424 Email: info@kugler-kandestin.com

1 Place Ville-Marie, addressStreetSuite 2101, CityplaceMontreal StateQuebec PostalCodeH3B 2C6

StateplaceBritish Columbia class members:

MERCHANT LAW GROUP Tel: 866-225-7777 Fax: 403-237-9775

addressStreet340-251 3rd Avenue S. W. addressStreet203-895 Fort Street

CityCalgary, StateAlberta PostalCodeT2P 3T3 StateplaceVictoria, B.C. V8W 1H7

For class members in all other provinces and territories:

SUTTS, STROSBERG Tel: 1-519-561-6248 Fax: 519-561-6203

addressStreet600-251 Goyeau Street,

CityplaceWindsor, StateOntario PostalCodeN9A 6V4

HOTZ LAWYERS Tel: 416-590-7823 Fax: 647-430-8269

addressStreet203-100 Upper Madison Ave.,

CityplaceToronto, StateOntario PostalCodeM2N 6M4

Class members can seek the guidance of their own lawyers if they consider it to be desirable and necessary, at their own expense.

INTERPRETATION

This Notice is a summary of the Settlement Agreement. If there is a conflict between the provisions of this notice, and the terms of the Settlement Agreement, the Settlement Agreement shall prevail.

This Notice has been approved by the Superior Court of Justice for Ontario, the Supreme Court of British Columbia and the Superior Court of Quebec. Please do not direct questions relating to this Notice to the Courts. Their administrative structure is not designed to address this type of inquiry.