The Yucaipa Companies, a private investment company based in Los Angeles, has
entered into an agreement to acquire privately held Alliance Entertainment Corp. , one of the nation’s largest distributors of music, video,
DVD and games and an emerging developer of both e-commerce-enabling databases and proprietary Web sites, including the All-Music Guide , All-Movie
Guide and All-Game Guide.

With Yucaipa’s commitment, Alliance will continue to expand its core music distribution and fulfillment business and further grow through product diversification while simultaneously building its customer base in Internet fulfillment services and e-commerce-enabling technologies.

Alliance’s core distribution business serves the entertainment industry, supplying both ”brick and mortar“ stores and Internet retailers. Its well-established systems and fulfillment
infrastructure provide retail customers with a wide array of real-time fulfillment services and product selections.

”Brick and mortar’ customers represent more than 5,000 accounts in more than 25,000 store fronts both domestically and internationally. These customers include Barnes & Noble,
Blockbuster, Hastings Entertainment, Trans World Entertainment, Musicland, Wherehouse Entertainment and National Record Mart, as well as major mass-market retail chains such as
Walgreens, Eckerds, BJ’s Wholesale Club and the majority of the domestic independent retailers.