Suretone Records and ARTISTdirect Announce Groundbreaking Peer-to-Peer and Video Content Initiative.

New Effort Protects Copyrighted Digital Music on P2P Networks While Providing Label Fans with Access to Exclusive Video Content

SANTA MONICA, Calif. -- The ARTISTdirect Network, the world's largest independent music destination on the Web, today announced an innovative new peer-to-peer and video content initiative, which will both create a revenue stream and protect artists' rights. Joining this pioneering effort is noted rock label Suretone Records, home to artists such as The Cure, Weezer and Angels & Airwaves.

Previously, the major record labels have fought illegal file sharing on the P2P networks with a combination of lawsuits and existing digital piracy protection technologies. Under the provisions of the new agreement, ArtistDirect's MediaDefender technology will direct a considerable audience of fans seeking pirated music files on the peer-to-peer (P2P) networks to Suretone-branded exclusive content from the artists being sought. Unlike previous "spoofing" technologies, which direct the end-user to advertisements or false MP3 files, MediaDefender's redirection results in a positive consumer experience.

The agreement also establishes a Suretone-branded video channel on ARTISTdirect.com, leveraging the independent music site's 15 million unique monthly visitors in the U.S. and 40 million worldwide. As part of the deal, ARTISTdirect will sell advertising for the Suretone-branded channel, and share the resulting revenue with the label.

"Peer-to-peer users that download our artists' files are shoplifting intellectual property. However, we recognize that they are enthusiastic fans of our artists," said Suretone Founder and Chairman Jordan Schur. "ARTISTdirect and MediaDefender are able to deliver a massive audience from the peer-to-peer networks that no one else can, and in turn, will allow us to offer exclusive media content to our fans."

Jon Diamond, president and CEO of ARTISTdirect said, "We have come to accept that the P2P networks, and their estimated 400 million+ monthly users globally, are here to stay. Jordan Schur has extensive experience over the years reaching fans and recognizes the scale and power of the peer-to-peer audience to which we are facilitating unprecedented access. Our partnership represents a significant milestone for the industry, which is starting to recognize how to turn the tables on the file-sharing networks for both profit and protection."

About ARTISTdirect, Inc.

Headquartered in Santa Monica, California, ARTISTdirect, Inc. is a digital media entertainment company that is home to an online music network and, through its MediaDefender subsidiary, is the leading provider of anti-piracy solutions in the Internet-piracy-protection industry. The ARTISTdirect Network (http://www.artistdirect.com) is a network of web-sites offering multi-media content, music, news and information organized around shared music interests, music-related specialty commerce and digital music services.

About Suretone Records

Suretone Records (http://www.suretone.com), a partnership with Interscope Records and the Universal Music Group, was founded in 2006. The label is home to Angels & Airwaves, Chris Cornell, the Cure, Drop Dead Gorgeous, Eastern Conference Champions, Headway, Manic, Meriwether, New Found Glory, Pink Spiders, Robert Fortune Band, Shwayze and Weezer.