MEGAFORCE's 'Sister Company' MRI Files Lawsuit Against RYKO

May 3, 2006

MRI Associated Labels Inc., the sister company of Megaforce Records, today announced it has filed suit in New York Supreme Court against former distributor Ryko, which was recently acquired by Warner Music Group. MRI is seeking more than $1,000,000 in damages for breach of contract.

MRI's distribution agreement with Ryko ended April 29, 2005. MRI demands the return of all its product, which includes CDs and DVDs, and liquidated damages for breach of contract, plus compensatory damages for non-payment according to contract, withholding of product, illegally taking distribution fees, and other charges. Missi Callazzo, MRI President, said: "It's unfortunate that we were left with no choice but to use the courts to enforce our termination agreement with Ryko."

Megaforce Records was the original home to METALLICA and a host of other pioneering artists. MRI is currently distributed by RED, the independent distribution arm of Sony BMG.

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