ARTISTdirect Acquires Pasadena Angels Portfolio Company MediaDefender

Los Angeles, Calif., August 1, 2005 - ARTISTdirect announced today that it is acquiring MediaDefender, a developer of internet piracy prevention technology, for $42.5M in cash.

MediaDefender, based in Marina Del Rey, develops software for detecting illegal file sharing and downloading of copyrighted music. The product is used by music and entertainment companies to battle illegal music swapping and downloading.

ARTISTdirect said that it plans to also offer the MediaDefender technology for protecting videos, computer games, software, and e-books. The acquisition was funded through senior secured debt and convertible subordinated debt and warrants.