ARTISTdirect Stockholders Approve Ted Field as Chairman and CEO of ARTISTdirect and Formation of New Record Label.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--June 29, 2001

Reverse Split Approved

Company Expects to Maintain Nasdaq Listing

ARTISTdirect, Inc. (Nasdaq:ARTD) today announced that its stockholders have approved definitive agreements with veteran entertainment executive Ted Field to become Chairman & CEO of ARTISTdirect and form a new record label with ARTISTdirect.

"I am excited to be joining ARTISTdirect as we position the Company to participate more fully in the many opportunities we see in the music industry," said Mr. Field. "I join a team that combines pioneering efforts in online music with tremendous depth of experience in traditional music disciplines. Together, we hope to fully exploit the possibilities of an integrated approach to the creation and distribution of music."

From 1990 to 2001, Mr. Field served as co-Chairman of Interscope Records, which was one of the most successful record labels of the 1990s, with such acts as Tupac Shakur, Nine Inch Nails, Dr. Dre, No Doubt, Snoop Doggy Dogg, Limp Bizkit, and Eminem. As Chairman and CEO of Radar Pictures, Inc., a film production company and successor to Interscope Communications, which he founded in 1979, he also has produced a number of successful films, including "Runaway Bride," "Mr. Holland's Opus" and "The Hand That Rocks the Cradle." Until 1984, Mr. Field was co-owner of Field Enterprises, a media conglomerate that owned numerous television stations, the Chicago Sun-Times newspaper and Cabot, Cabot and Forbes, a large real estate company.

ARTISTdirect Records, the co-venture between ARTISTdirect and Mr. Field, recently announced that NAAM Brigade, through a venture with Tuff Break Entertainment, would be the label's first artist. The Philadelphia-based trio are currently in a Los Angeles recording studio with producers Big Demme and Stormy Day to record their debut album due out early in 2002.

"It was very important to me that the first act I signed to ARTISTdirect Records be undeniable," said Field. "NAAM Brigade is that rare combination of pure hip-hop talent that combines rapping and singing with lyrics that include cleverness, substance and street credibility."

Marc Geiger, former Chairman and CEO, assumes the post of Vice Chairman and President of Artist Services. Keith Yokomoto continues as President and Chief Operating Officer. "We are thrilled to have Ted on board officially," commented Geiger. "With the addition of Ted's leadership and a new label, we believe that the Company is well-positioned to follow through on its original vision of online media and e-commerce joined to traditional talent agency and record label operations."

In addition to the definitive agreements with Mr. Field, stockholders also approved a one-for-ten reverse split of the Company's common stock that is currently planned to take effect on July 5, 2001. The Company's common stock will begin trading on a reverse split basis on July 6, 2001. Giving effect to the reverse split, the Company will have approximately 3.6 million shares outstanding.

"With the reverse split approved and effective shortly, we expect to regain compliance with all Nasdaq listing requirements, allowing us to maintain our status on the National Market System," said Jim Carroll, Chief Financial Officer of the Company. "We also anticipate making open market purchases from time to time under the $2 million program authorized by the Board in May."

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 Mr. 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.