ARTISTdirect Records And BMG Announce Distribution and License Agreement.

Business Editors

LOS ANGELES & NEW YORK--(BUSINESS WIRE)--Nov. 19, 2001

ARTISTdirect Records, the record label co-venture of ARTISTdirect, Inc. (Nasdaq:ARTD) and Ted Field, and BMG, the global music division of Bertelsmann AG, have entered into a North America distribution agreement and worldwide license arrangement; it was announced today by Ted Field, CEO, ARTISTdirect, and Bob Jamieson, President and CEO, BMG North America.

Under the terms of the agreement, BMG Distribution will distribute the label's releases in North America, and BMG will license ARTISTdirect repertoire in territories throughout the world. BMG will also acquire a minority stake in ARTISTdirect Records and provide certain funding for the label. Specific terms of the deal were not disclosed.

"I am very excited about ARTISTdirect aligning itself with what is probably the best distribution machine in North America," commented Field. "We highly value the expertise BMG has throughout the world and know it will play a significant role in our ability to break new artists."

Previous to helming ARTISTdirect, Field co-founded Interscope Records, one of the industry's most successful music companies where he was instrumental in breaking artists such as Eminem, No Doubt, Nine Inch Nails, and Tupac Shakur.

"BMG is pleased to participate in the growth of ARTISTdirect and excited to join forces with a creative leader of Ted Field's caliber and track record," said Bob Jamieson, President and CEO, BMG North America. "This agreement will compliment our A&R activities in markets around the world."

Added Pete Jones, President and CEO, BMG Distribution and Associated Labels, "We are very excited about this relationship with Ted Field and ARTISTdirect. His reputation, talent and taste make him a premier music executive. BMG looks forward to helping Ted and his team realize the great success, which they are uniquely capable of achieving and to a long and prosperous association."

The first CD release under this agreement will be "Fast," the debut by singer/songwriter Custom that is due out in early 2002. Subsequent releases by ARTISTdirect Records, including NAAM Brigade, The Blood Brothers, and Pokafase, among others, will also be on the schedule for next year.

About BMG

BMG is the global music division of Bertelsmann AG, one of the world's leading media companies, with annual revenues of $18.45 billion. BMG owns more than 200 record labels in 44 countries including Arista Records, RCA Records, RCA Label Group -- Nashville/RLG, and Ariola. In addition, BMG owns one of the industry's most highly regarded distribution companies and one of the world's largest music publishing companies.

About ARTISTdirect Records:

ARTISTdirect Records is a co-venture between ARTISTdirect, Inc. and Ted Field, one of the most successful executives in the entertainment industry. Launched in the summer of 2001, ARTISTdirect Records' talent roster includes a diverse range of hip-hop, rap, alternative, and rock artists such as Custom, NAAM Brigade, The Blood Brothers, Manic Gravity, and Pokafase. ARTISTdirect Records has a distribution agreement in North America with BMG, who also has a license for territories around the globe. ARTISTdirect Records is affiliated with ARTISTdirect, Inc., 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.