The contract allows the isle-based Mountain Apple Co. to retain distribution of Reichel's recordings and the artist's own Punahele Productions to produce his work and to keep artistic control.
Atlantic plans to launch Reichel on a tour that will include appearances at the Hollywood Bowl in Los Angeles and Carnegie Hall in New York.
Reichel, a Na Hoku Hanohano Award-winning composer, kumu hula, chanter and Hawaiian-language teacher, Saturday finalized a 2-inch-thick contract with Atlantic, which is a Time-Warner Inc. subsidiary.
"We're really excited," Reichel said in a phone interview from Maui. "We have no idea what is in store for us yet, but we're ready to meet the challenges, whichever they may be.
"As for me, whatevah -- whatever happens happens. I'm trying not to look at it myopically. I'm looking at it as an overall thing, for the (Hawaiian music) industry, for all of us, not just the Keali'i Reichel entity."
Jim Linkner of Kailua, who with Reichel and Fred Krauss co-produces the artist's music, said Reichel not only wants to share his success with hometown supporters, but also figures Warner can't penetrate isle markets as Mountain Apple does.
The contract also limits and specially structures mainland tours to allow Reichel to return to Hawaii frequently. Linkner said Atlantic officials have come to realize that Reichel's spiritual focus is on Maui where he lives and that he must return there to keep it.
Under the contract Reichel will keep the Maui-based Punahele label on all albums, including his third, which he is completing.
"The feeling is that our music is really unique, a hybrid," Linkner said. "They (at Atlantic Records) have an appreciation for it. They think that the time is really here for Hawaiian music to get recognized. They approached us."
Mountain Apple Co. becomes a distributor under the auspices of Alternative Distribution Alliance, Warner's distribution division.
Reichel said: "We're trying to maintain our standards, to make it as Hawaiian thinking and local as possible. One of the things that had to remain was Mountain Apple as the local distributor. We insisted on it; if not, well then, OK, bye.
"Atlantic was very gracious and understood our reasoning. It's really amazing."
Linkner said Mountain Apple owner Jon de Mello and president Leah Bernstein "are doing a fantastic job."
"We would like to keep them, and Atlantic may use them for more distribution. They were very impressed with Jon and Leah's operation down there and seemed to be very cooperative with that (negotiating Mountain Apple into the contract); it's not an easy thing to do on a big scale. But we figured it was worth the effort. ... We don't want to turn our back on the community."
Time-Warner Inc. has expansive resources, and Linker views the contract as uniquely situated between recording and production/
distribution agreements -- a "distribution deal with promotion and publicity benefits from the label," he said. Atlantic plans a national launch of Reichel's best-selling "Kawaipunahele" and "Lei Hali'a" albums March 25.
Reichel said: "We were being romanced by several large record labels on the mainland. One of things we insisted on was that we retain our identity, not only as Hawaiians but also as local people. And we are not going to give away any of our attitudes or values.
"We refused to go out on tour for six months or a year. We would be burned out, useless to everybody. For us to maintain our energy and spirit, we have to be home. That was really, really the bottom line. ... No mo' mana out there, so we gotta come home and, you know, replenish."
Atlantic at first wanted Reichel to tour 25 cities but agreed to cut that. Besides Los Angeles and New York, Reichel will play at the Cerritos (Calif.) Cultural Center, then in San Francisco, Seattle and Las Vegas and make television appearances along the way.
Reichel, meanwhile, will appear in three concerts Friday through Sunday March 14 to 16 at the Hawaii Theatre. All performances -- which are close to sold out -- also feature Uluwehi Guerrero, co-kumu hula for Reichel's Maui halau; singers Kekuhi Kanahele of the Big Island and Eric Gilliom of Maui; and Sudden Rush, a Big Isle hip-hop group.