PANTALEON to establish own music label PANTASOUNDS GmbH

- Launch of new label PANTASOUNDS

- Music as additional segment of the Groups activities as its own subsidiary

- Exclusive distribution deal signed with Universal Music

Kronberg, Taunus / Munich July 1, 2016 – PANTALEON Entertainment AG (XETRA: PAL) expands their core business with the launch of their own music label and an exclusive distribution agreement with Universal Music. The future subsidiary PANTASOUNDS GmbH will have its headquarter in Munich with an additional office in Berlin and is geared to pool all music related activity within the PANTALEON-Group.

PANTASOUNDS will be established in liaison with leading music industry players, who along with their functions within the company will be connected as shareholders of the new label. PANTALEON Entertainment AG will hold a 67.5 percent majority stake, with Music Manager Pino Brönner taking charge of operational responsibility of the new subsidiary as CEO, while also becoming a partner. Arne Schuhmann and Josef Bach – both successful music producers in their own right - will also be shareholders.

The first cornerstone of the newly launched label is the exclusive label distribution agreement with Major Universal Music the market leader in Germany and the global music industry. The freshly signed deal will have Universal Music distribute soundtracks and other works by PANTALEON artists exclusively.

Tom Bohne, President Music UNIVERSAL MUSIC Germany: "I am very pleased to be working with PANTASOUNDS, the list of its founders pretty much spells dream team: Musical creativity, economic expertise, marketing know-how, and to top it all off Matthias as a partner, who not only has a great sense of what audiences want, but is also himself an established brand in the entertainment business. I wish everyone involved much success and good luck!"

With an array of previously initiated projects, the newly established company has already secured sales ranging in the upper six-figure Euro amount. Aiming to distribute not only the soundtracks of PANTALEON-Groups features and series but also to facilitate creative stepping-stones for PANTALEON artists with competent production and marketing, thus resuming the PANTALEON success story in the related field of music. In the past PANTALEON-Group collaborated with external labels, the founding of the new segment will now improve sustainable revenue structures and generate additional revenue potential for the Group.

„Music and film are really inseparable subjects – and simply belong together. In the past, we have successfully promoted music acts on a project basis with our own films and achieved excellent chart positions. So now, it’s only logical to combine these activities in a subsidiary and work with strong partners to parlay that.” says Dan Maag, CEO of PANTALEON Entertainment AG. „Pino Brönner is one of the most relevant figures in the German Music Industry and is the perfect match for our existing Pantaleon team. With Universal Music and Tom Bohne we now also have the market leader in music firmly by our side, a model, which we have been implementing very successfully with our film distribution partners of Warner Bros.”