ARTISTdirect Announces Effectiveness of Reverse Stock Split.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--July 5, 2001

ARTISTdirect, Inc. (Nasdaq:ARTD) today announced that its one-for-ten reverse stock split has become effective for stockholders of record at the close of business on Thursday, July 05, 2001. The Company's common stock will trade on a post-split basis beginning Friday, July 6, 2001. For 20 trading days after the reverse split, the Company's shares will trade on The Nasdaq National Market System under the symbol "ARTDD". Upon expiration of the 20-day period, the Company's shares will continue to trade under the symbol "ARTD". After the reverse split, the Company will have approximately 3.6 million shares of common stock outstanding, subject to reduction for fractional shares eliminated in connection with the reverse split.

In instances where the reverse stock split would result in a stockholder becoming the holder of a fractional interest in a share of common stock, ARTISTdirect will issue cash in lieu of the fractional share. Mellon Investor Services will serve as the Company's Exchange Agent to affect the exchange of certificates and payment of cash in lieu of fractional shares. Shareholders of record as of the close of trading on July 5, 2001 will receive written notice regarding the procedure for exchanging their stock certificates.

About ARTISTdirect Inc.

ARTISTdirect Inc. (Nasdaq:ARTD) is a music and media company that combines an online music network with integrated offline assets to provide a single-stop solution for music fans, artists, labels and advertisers. ARTISTdirect.com (www.artistdirect.com), a comprehensive online destination, blends music programming, community, e-commerce retail and digital music services. Through the ARTISTdirect Talent Agency, the company also manages offline musical tour booking and develops event-marketing programs extending sponsor reach. Through its co-venture, ARTISTdirect Records, the company operates a record label. The company has headquarters in Los Angeles.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain projections or other forward-looking statements regarding future events or the future financial performance of ARTISTdirect. These projections and statements involve risks and uncertainties. Readers are cautioned that these statements are based on information currently available to management and are only predictions. These predictions may differ materially from the company's actual future events or results. Potential risks and uncertainties that may affect future events and the company's business, financial status and operating results include, among others, the ability of ARTISTdirect and Frederick Field to successfully implement and operate the new record label, general uncertainties related to amounts spent on online advertising and e-commerce, ARTISTdirect's ability to attract new artists and retain existing artists, competition in its industry, including from Web sites offering free music, ability to enter into new strategic relationships and leverage existing strategic relationships, ability to increase revenue from online product sales, advertising and other revenue streams, and to generate revenue from digital distribution, ability to increase visits to ARTISTdirect's network of sites, ability to offer compelling content, and ability to protect and/or obtain intellectual property rights. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, ARTISTdirect cannot assure the public that future results will meet these expectations. Moreover, neither the company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. ARTISTdirect is under no duty to update any of the forward-looking statements after the date of this release to conform those statements to actual results or to changes in the Company's expectations. More information about potential factors that could affect the Company's business and financial results is included in the documents filed by ARTISTdirect with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, current report on Form 8-K and its Registration Statements on Form S-1 and all amendments thereto.