Gaiam, Revolution Dispose of Mutual Equity Holdings

BROOMFIELD/WASHINGTON, February 7: Gaiam has acquired the
stake in the company held by Steve Case’s Revolution Living, which in turn has
bought Gaiam’s stake in its digital content venture LIME.

Gaiam purchased 2.5 million shares of Gaiam common stock
held by Revolution Living for $13.14 per share. Jirka Rysavy, the chairman and
largest shareholder of the healthy lifestyle media company, shelled out $7.2
million for Revolution Living's option to acquire approximately 2.3 million of
his Gaiam shares at $10 per share. The option was originally issued as part of
Revolution Living's investment in Gaiam. Further, Revolution Living purchased
Gaiam's $3.8 million investment in LIME: Healthy Living with a Twist, a
broadband content platform.

"After 18 months, we both determined that only minor
synergies exist between Gaiam and Revolution Living, and therefore mutual
equity holdings did not provide any meaningful operating advantages," said
Jirka Rysavy and Steve Case in a joint statement. "We look forward to
continued cooperation between Gaiam and LIME in the distribution of a growing
collection of healthy living content."