ARTISTdirect and Ted Field Announce Plans for Field To Be Named CEO of ARTISTdirect and Formation of New Record Label.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--April 2, 2001

ARTISTdirect Inc. (Nasdaq:ARTD) today announced that it has entered into a preliminary agreement with veteran entertainment executive Ted Field to become chairman and chief executive officer of ARTISTdirect and form a new record label in partnership with ARTISTdirect.

The label, Radar Records, will be a 50/50 co-venture between ARTISTdirect and Field, with ARTISTdirect providing a significant financial commitment.

Marc Geiger, current chairman and CEO of ARTISTdirect, will become vice chairman and president of artist services and will be responsible for building the talent agency business with ARTISTdirect co-founder Don Muller, as well as developing a fully integrated suite of artist services, such as concert booking, sponsorships, A&R, database marketing and subscriptions.

"Operating a record label has been part of the ARTISTdirect strategy from the beginning," commented Geiger. "Attracting an executive of Ted's stature and experience is a real coup. I look forward to a great, long-term relationship that will give us the opportunity to build an important label business and leverage our online platform in exciting new ways."

"I am excited to create this new music platform with the talented team at ARTISTdirect," added Field. "A new record label integrated with ARTISTdirect's online distribution and artist services represents a potent combination that will allow us to exploit the full range of opportunities in the music industry."

"The move to form Radar Records is the first major move to transform ARTISTdirect into a full-service music entertainment company," said President and Chief Operating Officer Keith Yokomoto. "We plan to leverage our online network, www.artistdirect.com, and cash resources to grow our artist services and record label operations. The goal is to have a balanced company with traditional and new media skills necessary for artist development in today's marketplace."

Field presently serves as chairman and CEO of Radar Pictures Inc., a film production company, and the successor to Interscope Communications, founded by Field in 1979. From 1990 to 2001, Field served as co-chairman of Interscope Records, one of the most successful record labels of the 1990s. Until 1984, 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. He has produced numerous blockbuster films, including "Runaway Bride," "Mr. Holland's Opus" and "The Hand that Rocks the Cradle." During the 1990s, Interscope Records signed such acts as Tupac Shakur, Nine Inch Nails, Dr. Dre, No Doubt, Snoop Doggy Dogg, Limp Bizkit and Eminem.

In addition to the formation of the joint venture and the financial commitment of ARTISTdirect, the preliminary agreement contemplates that ARTISTdirect would enter into a five-year employment agreement with Field and that he and two of his designees would join the ARTISTdirect board of directors. As currently contemplated, Field would also serve as the CEO of the record label.

The preliminary agreement is non-binding, and there can be no assurance that ARTISTdirect will be successful in entering into a definitive transaction with Field. The consummation of a transaction is conditioned on the parties successfully negotiating and entering into a definitive agreement, as well as the completion of legal, financial and business due diligence by both parties. The transaction is also subject to ARTISTdirect obtaining final approval by the company's board of directors, as well as obtaining shareholder approval for the transaction.

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. 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 Field to consummate the co-venture and 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 Securities and Exchange Commission, 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.