ABC'S DIGITAL DOWNLOADS

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ABC'S DIGITAL DOWNLOADS

Los Angeles (February 27, 2006) – "In violation of our collective bargaining agreements, ABC recently began selling Lost and Desperate Housewives for digital download to iPods without first bargaining with Screen Actors Guild. Today ABC advised the Guild that it intends to pay residuals to performers based on the videocassette formula - a formula that does not apply to this new platform. ABC's actions are flatly inconsistent with our collective bargaining agreements and with labor law obligations, and fail to fairly compensate performers for the use of their work and images. SAG will pursue arbitration against ABC, or any company, which disregards their contractual commitments or attempts to deny our members just compensation."