RECORDING INDUSTRY RECEIVES $4 MILLION IN CASH FOR CD PLANT COPYRIGHT INFRINGEMENT WASHINGTON, June 1, 1998 -- The Recording Industry Association of America obtained $4 million in a cash settlement from Quixote Corporation, the Chicago-based parent company of Disc Manufacturing, Inc., for claims of copyright infringement. A two-year investigation, conducted by the RIAA, revealed that DMI, Inc. -- an independent CD plant no longer in business -- accepted more than 200 illegal CD orders from music pirates. The settlement was reached before commencing a formal lawsuit. In addition to the monetary settlement, Quixote Corporation agreed to transfer documents that identify those DMI customers who placed illicit orders for CDs. "This settlement should not come as a surprise," said Steve D'Onofrio, RIAA executive vice president and director of anti-piracy. "If you manufacture infringing sound recordings, you're liable under U.S. copyright law. The only way to protect yourself from pirates who don't care about your business, is to know your customer and know your product. It's that simple. If CD plants have adequate business practices in place, pirates will clearly be discouraged from placing illicit orders." The RIAA is announcing a new set of business practices for CD plants at Replitech later this week. In their eight years of operation, DMI manufactured illegal CDs by artists such as The Beatles, Whitney Houston, Eric Clapton, Celine Dion, ABBA and Dr. Dre. The RIAA is a trade association whose members create, manufacture and/or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States. The RIAA investigates the illegal production and distribution of pirated sound recordings that cost the music industry approximately $300 million dollars a year domestically and $5 billion worldwide. Consumers and retailers can report suspected music piracy to the RIAA by dialing a toll-free hotline, 1-800-BAD-BEAT or sending email to badbeat@riaa.com.