Disposal and agreement of Amended Bank Facility

31 May 2012

HMV Group plc

Disposal of the Hammersmith Apollo and agreement of Amended Bank Facility

HMV Group plc announces that it has conditionally agreed to sell Hammersmith Apollo Limited ("HAL"), the company which owns and operates the Hammersmith Apollo, to STAGE C Limited for a total cash consideration of £32 million. STAGE C Limited is jointly owned by Ansco Music Club Limited, a company within the Anschutz Entertainment Group ("AEG"), and getgo Consulting GmbH, a company within CTS EVENTIM AG ("CTS EVENTIM").

The disposal is conditional upon shareholder approval, banking approvals and the purchaser securing regulatory approvals. Subject to completion of the disposal and the satisfaction of customary conditions precedent, the Group has amended its existing £220m Bank Facility with its existing lenders and extended it to 30 September 2014. Details of the disposal, the amended Bank Facility and notice of the general meeting to approve the disposal will be set out in the circular to shareholders which will be issued in due course.

The Directors believe the disposal of HAL will allow management to focus more closely on HMV's strategy for its core business, developing HMV's retail offering with a view to maximising value for all stakeholders. The disposal and the amended Bank Facility together represent an important step towards strengthening HMV's capital structure. The proceeds from the disposal will be used to reduce the Group's outstanding debt and for general corporate purposes.

Completion of the disposal is expected to occur no later than the end of August 2012.

The strategic review of the remaining Live business is ongoing and we will update the market as appropriate.

Simon Fox, Chief Executive of HMV Group, said:

"The Hammersmith Apollo is an iconic London venue and it has been a privilege to own it over the last three years. However the sale will enable HMV to extend its bank facilities, strengthen its capital structure and ensure a strong future for the Group. AEG has a great track record in running live venues. They and their partner buyer CTS EVENTIM, the leading European ticketing services provider, have impressive and exciting plans for the Hammersmith Apollo and we wish them well."

Notes to Editors:

Information on HAL

HAL owns and operates the Hammersmith Apollo, one of London's major live entertainment venues, located in Hammersmith, West London. HAL runs the Hammersmith Apollo as a variety venue which hosts opera, ballet, children's entertainment, music and comedy shows. With fully removable stalls providing a seated capacity of 3,632 and a standing capacity of 5,035, the Hammersmith Apollo is a 5,000+ capacity venue in central London. In recent years, performers at the Hammersmith Apollo have included Oasis, REM, Stereophonics, Kylie, Elton John and Peter Kay.

HAL generated profit before taxation of £1.9 million in the 9 months ended 30 April 2011. HAL had gross assets of £20.7 million as at 30 April 2011.

Enquiries:

HMV Group plc +44 20 7404 5959*

Simon Fox, Group Chief Executive

David Wolffe, Group Finance Director

Citigroup Global Markets Limited +44 20 7986 4000

(Financial Adviser and Corporate Broker to HMV Group)

Jan Skarbek

Andrew Seaton

Brunswick +44 20 7404 5959

Mike Smith

Helen Smith

* All calls via Brunswick

Citigroup Global Markets Limited ("Citi"), which is regulated in the United Kingdom by the Financial Services Authority, is acting solely for HMV Group plc in relation to the Disposal and nobody else and will not be responsible to anyone other than HMV Group plc for providing the protections afforded to clients of Citi nor for providing advice in relation to the Disposal or any other matter referred to in this document.

Forward-looking statements

Certain statements in this announcement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.