DEAG Deutsche Entertainment Aktiengesellschaft: Sony Music Entertainment makes strategic investment in DEAG's Classical Music business

DEAG Deutsche Entertainment Aktiengesellschaft / Joint Venture

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
----------------------------------------------------------------------

Sony Music Entertainment makes  strategic investment in DEAG's Classical
Music business

Berlin, July 7, 2009. Sony Music Entertainment (New York/Tokyo) will take a
49% interest in the European Classical Music business of DEAG Deutsche
Entertainment AG (ISIN DE  DE 005513907). Effective July 7, 2009 Sony will,
through an agreement combining fixed and earn-out elements, purchase from
DEAG 49% of the shares of DEAG Classics AG (Berlin) for a two digit million
Euro amount. The deal is subject to approval, inter alia, by the applicable
antitrust authorities.

Peter Schwenkow will remain CEO of the joint venture. He has agreed to
serve in this role for a period of five years to strengthen the DEAG
Classics AG's existing position in the Classical Music business in Europe
and to press ahead with the international expansion, supported by one of
the world's largest entertainment groups. In addition, he will continue in
his role as CEO of the parent company DEAG Deutsche Entertainment AG.

It is the stated goal of DEAG Classics AG to further develop its existing
contractual relationships with artists such as David Garrett, Plácido
Domingo, Anna Netrebko, Jonas Kaufmann, Jessye Norman, Rolando Villazón,
Elina Garanca, Lang Lang and others. DEAG Classics AG will simultaneously
explore the expansion into selected European countries as well as further
developing Jazz and Crossover.

For Sony Music Entertainment the participation is an important step within
the diversification of its core business and the renewed focus on Classical
Music and live entertainment.

The new partners in the Classical Music business intend to market artists
jointly and internationally within a 360-degree-approach. For DEAG Classics
AG this represents a big opportunity as regards the expansion of its
activities in Europe and potentially elsewhere. The company expects a
positive impact on the depth and quality of its artist roster. DEAG Classic
AG's significant Classical Music operations in Great Britain, which are run
by the subsidiary Raymond Gubbay Ltd., will be part of the new joint
venture. In addition to the operative and strategic advantages the sale of
the participation also has positive effects on results, cash flow and
equity ratio of DEAG.

Further details will be announced tomorrow (Wednesday) at 3 pm at a press
conference in the Kaisersaal at the  Sony Center in Berlin by Rolf
Schmidt-Holtz, CEO Sony Music Entertainment, New York, together with Bogdan
Roscic, CEO Sony Classical, and Peter Schwenkow, CEO DEAG Deutsche
Entertainment AG.

The company will also hold a conference call for analysts and finance
journalists today (Tuesday) at 5pm under the phone number +49 (0) 6103
4853001 and provide additional information of the transaction. Interested
parties may obtain the necessary access information by phoning edicto GmbH
on +4969905505-53 or emailing deag@edicto.de.


Contact:
Edicto GmbH
Axel Mülhaus
Im Gründchen 18a
D-61389 Schmitten
Tel: +49(0)6084/94 85 90
Fax: +49(0)6084/94 85 92 
Email: deag@edicto.de


07.07.2009  Financial News transmitted by DGAP
----------------------------------------------------------------------
 
Language:     English
Issuer:       DEAG Deutsche Entertainment Aktiengesellschaft
              Potsdamer Straße 58
              10785 Berlin
              Deutschland
Phone:        +49 (0)30 / 810 75-0
Fax:          +49 (0)30 / 810 75-519
E-mail:       info@deag.de
Internet:     www.deag.de
ISIN:         DE0005513907
WKN:          551390
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Düsseldorf, Stuttgart, Hamburg
 
End of News                                     DGAP News-Service
 
---------------------------------------------------------------------------