Release #-101-00

MAYOR GIULIANI ANNOUNCES CITY WILL ASSIST OXYGEN MEDIA AND
UNIVERSAL MUSIC GROUP IN ESTABLISHING NEW YORK CITY OFFICES

Mayor Rudolph W. Giuliani announced today that the New York City Industrial Development Agency (IDA) will help the women's multimedia network Oxygen to expand its operations in Manhattan and will assist the Seagram - owned UMG Recording Inc. in establishing a headquarters for its e-commerce division.

"Time and again, high-tech businesses are proving that New York City is the E-Business Capital of the World," said Mayor Giuliani. "As the IDA assists four Internet-related companies this month, our high-tech community continues to grow faster than any other sector in our business community."

The IDA also assisted a number of companies in other industries this month, including a Bronx packaging manufacturer, an airport services company at John F. Kennedy International airport (JFK), a bedspread manufacturer in Queens and a metal door distributor in Brooklyn. The agreements approved this month will lead to the creation of 2,875 jobs over 15 years.

Leading Internet-Related Companies Plan Futures In New York City

Oxygen Media, founded in 1998 by television industry veteran Geraldine Laybourne, plans to add 36,000 square feet to its rapidly growing operations at 75 Ninth Avenue, also known as the Chelsea Market. As fast-growing convergence company, Oxygen operates a cable television network, and a growing online network of 14 websites, targeted to women. At 364 jobs in New York City at year's end, the company has already added 80 jobs since then, and plans to add a total of 757 new employees over 15 years. Oxygen was approved to receive approximately $1.3 million net present value (NPV) in sales tax exemptions and $240,000 NPV in energy cost reductions over the term of the agreement.

UMG Recording Inc., one of the world's largest music recording companies, plans to establish a global headquarters for its new e-commerce division, which will be incorporated as universal Global E (UGE). UGE plans to move its operations into 25,000 square feet of space at 601 West 26th Street. UGE will be responsible for UMG Recording's worldwide efforts in new media and plans to add 330 new employees over 15 years. UGE expects to receive $1.1 million (NPV) in sales tax exemptions and $167,000 NPV in energy cost reductions over 15 years.

Leading online classified advertisement host AdOne LLC will expand and improve its 22,765-square-foot facility at 361 Broadway with IDA assistance. AdOne currently has 60 employees and initially plans to expand its offices by 30,365 square feet to accommodate immediate growth in its workforce. AdOne expects to add 445 new employees over 15 years. The
company is slated to receive approximately $1.13 million NPV in sales tax exemptions and $56,000 (NPV) in energy cost reductions.

Manhattan-based Jupiter Communications is a leading provider of research on Internet commerce and plans to expand its rapidly growing operation by moving to a 70,000-square-foot space at 21 Astor Place. Jupiter currently employs 209 workers in New York City and maintains offices in San Francisco, Stockholm, London and Sydney. The company plans to add approximately 1,270 new jobs over 15 years and expects to receive approximately $3 million (NPV) in sales tax exemptions and $522,000 (NPV) in energy cost reductions.

"New media industry leaders such as Oxygen, AdOne, Jupiter and UMG Recording continue to invest in their futures in New York City, and these agreements will lead to the creation of over 2,800 new jobs for the City's workforce," said Robert M. Harding, Deputy Mayor for Economic Development and Finance.

Airport Facility and Bedding Manufacturer Expand in Queens

The IDA this month agreed to assist two Queens companies -- airline services company LAMA/JFK/I Associates LLC (LAMA) at JFK International Airport, and bedspread manufacturer Penthouse Industries in Flushing.

"The IDA continues to be a tremendous asset to the City's burgeoning high-tech sector, as well as to the City's manufacturers, distributors and other growing businesses," said IDA Chairman Michael G. Carey. "By helping companies such as LAMA and Penthouse Industries, the IDA helps to strengthen the City's airports as well as its manufacturing and small business communities."

LAMA plans to renovate and equip approximately 650,000 square feet ties at JFK International Airport in Queens to provide space for air cargo companies and aircraft maintenance services. LAMA is comprised of the affiliates of four entities: airport developer AMPORT, financial services company Leucadia National Corporation, corporate real estate development firm John Akridge Companies, and financial advisory firm MCM Credit Markets, Inc. LAMA will lease the space from the Port Authority of New York and New Jersey and will then sublease space to such tenants as TWA and an airline catering company, leading to the creation of more than 700 jobs at the facility. LAMA plans to employ 32 workers and expects to receive approximately $1.32 million in sales tax exemptions and access to approximately $30 million in triple and double tax-exempt bonds.

Bedspread and drapery manufacturer Penthouse Industries, Inc. has rapidly outgrown its facility in Brooklyn and plans to move to a 42,000-square-foot building at 1852 Flushing Avenue in Queens, with IDA assistance. Presently employing 61 people, Penthouse Industries plans to add 18 new jobs over three years and is slated to receive approximately $541,770 (NPV) in sales tax exemptions and real estate tax benefits over 25 years.

Bronx Packaging Manufacturer Expands; Brooklyn Door Distributor Opens

Bronx-based Plaza Packaging Corporation, a manufacturer of boxes and formed platforms for beauty and cosmetics industry clients such as Avon and Revlon, maintains four locations employing 303 workers. With IDA assistance, Plaza plans to renovate and equip the three sites it owns at 21 West Clark Place, 1338 Inwood Avenue and 1364 Inwood Avenue, and to refinance outstanding IDA bonds that were used to purchase and subsequently construct a
50,600-square-foot building at One Plaza Drive.

Brooklyn start-up Doormart USA will distribute metal doors manufactured by its parent company, M&D Installers, and plans to purchase a 20,000-square-foot facility at 57 Box Street in Greenpoint, Brooklyn, with IDA assistance. The new facility will allow M&D Installers to shift all of its distribution to the new Doormart facility and to expand its manufacturing operations.

The IDA is the City's primary vehicle for providing assistance to businesses, including small industrial and manufacturing companies. The IDA is a conduit agency that issues tax-exempt industrial revenue bonds that assist eligible industrial and not-for-profit entities to finance expansion opportunities. The IDA also offers qualified companies abatements on sales, real estate and mortgage recording taxes and reduced energy costs.

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