Acacia Research Forms New Company, Soundbreak.com; Names Former Atlantic Records and Capitol Records Executives to Head Management Group.

PASADENA, Calif.--(BUSINESS WIRE)--June 24, 1999--

Acacia Research Corp. (Nasdaq/NM:ACRI) Thursday announced that it has formed a wholly owned subsidiary, Soundbreak.com, and named two recording industry executives, David Kronemyer and Walter Lee, as senior vice presidents to lead Soundbreak's business management group.

Soundbreak is developing a unique Internet site that will combine a 24-hour World Wide Webcast of new music hosted by live on-air DJs with a music and merchandise store, on-demand music videos, and a strong focus on community where users can interact with the DJs and each other. Soundbreak plans to launch the Web site in September and include e-commerce features by the end of the year.

Kronemyer was formerly senior vice president, business affairs of Atlantic Records and vice president, business affairs of Capitol Records. He holds a law degree from the University of Southern California.

Lee was formerly general manager, senior vice president of marketing, sales and promotion of Capitol Records and general manager, vice president of marketing and promotion for Morgan Creek Music. He holds a bachelor of arts in communications from Boston University.

Soundbreak's technology group is lead by Tony Leung, a 15-year veteran of Apple Computer, who was recently named vice president, technology at Acacia Research.

Acacia Research Chief Executive Officer Paul Ryan stated: "Soundbreak's goal is to harness the power of live radio and to couple that with the explosive growth of the Internet.

"There is an insatiable appetite for music worldwide, especially music originated in the U.S. Soundbreak represents a major business opportunity for us as e-commerce sales of music are projected to increase from approximately $200 million in 1998 to over $4 billion by 2004.

"David Kronemyer's and Walter Lee's experience at major record labels together with their understanding and vision of the Internet's future impact on the music industry is driving our business strategy."

Said Kronemyer, Soundbreak's senior vice president, business affairs: "Soundbreak will combine the best advantages of e-commerce sites and the newly emerging medium of Internet radio. The Web's international reach has the potential to change completely the way people experience music."

Added Lee, Soundbreak's general manager and senior vice president, marketing & promotion: "Soundbreak's mission is to provide our target audience, the 18-34 age group, with a superior entertainment experience and instant access to new music combined with the ability to immediately own the music they like. We have been lining up DJs who we know will be able to deliver a new music experience over the Internet."

Soundbreak will operate from facilities located in Hollywood, Calif. Streaming media services will be provided by broadcast.com(TM) (Nasdaq/NM:BCST). Soundbreak is in the process of securing performance licenses from ASCAP, BMI and SESAC, and will be in full compliance with the Digital Millennium Copyright Act (DMCA).

Acacia Research Corp. will host a conference call Thursday at 1 p.m. Pacific time (4 p.m. Eastern time). All interested parties are welcome to participate. To take part in this conference call, dial 800/288-8968 from anywhere in the United States and 612/332-1213 from anywhere outside the United States. To listen to the conference call via the Internet, go to the news section of the company's Web site at http://www.acaciaresearch.com.

Acacia Research Corp. is a diversified company with interests in several enterprises -- CombiMatrix Corp. (biochips/drug discovery technology), Greenwich Information Technologies LLC (video and audio-on-demand technology), MerkWerks Corp. (software development), Signature-mail.com llc (personalized e-mail service), Soundbreak.com Inc. (Internet music and e-commerce), Soundview Technologies Inc. (V-chip technology), Whitewing Labs Inc. (marketer of nutritional supplements), and Acacia Capital Management (investment advisory services).

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and conditions concerning Soundbreak's business plan, capital expenditures, technological developments, development of on-air talent and content, and the markets for products and services. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties, such as future economic conditions, changes in consumer demand, legislative, regulatory and competitive developments, and other circumstances affecting anticipated revenues and costs, which may cause actual results to differ materially. The company expressly disclaims any future obligation or undertaking to update or revise any forward-looking statement contained herein.