Pandora Announces Beginning of Leadership Transition Process

  Pandora Announces Beginning of Leadership Transition Process

                          Board Initiates CEO Search

      Joe Kennedy to Remain Chairman, CEO & President Through Transition

Business Wire

OAKLAND, Calif. -- March 7, 2013

Pandora (NYSE: P), the leading Internet radio service, today announced it will
begin a process to identify a successor to the Company’s Chairman, Chief
Executive Officer and President, Joseph Kennedy. Mr. Kennedy, who has led the
Company since July 2004, will continue in his current role until his successor
is named, in order to ensure an orderly transition.

“As I near the start of my tenth year at the helm of Pandora, I am incredibly
proud of the team and what we have accomplished in redefining radio. As part
of our Board discussions of the road that lies ahead, I reached the conclusion
and advised the Board that the time is right to begin a process to identify my
successor,” said Pandora Chief Executive Officer Joe Kennedy. “There is a
tremendous market opportunity ahead and I look forward to continuing to work
with all the great people at Pandora to keep driving the business forward.”

During Mr. Kennedy’s stewardship, Pandora has:

  *Created the world’s largest personalized Internet radio service, with over
    67 million monthly active listeners.
  *Become the largest radio station in almost every major U.S. market with
    over 8% of total U.S. radio listening.
  *Built an extraordinary team, over 700 strong with a sales presence over 28
    major markets, that delivered over 14 billion listener hours in fiscal
    2013.
  *Delivered total revenue of $427.1 million and mobile revenue of $255.9
    million in fiscal 2013.

“On behalf of the Board, I would like to thank Joe for his leadership,
dedication and innumerable contributions to Pandora,” said Robert Kavner,
Pandora’s Lead Independent Director. “During his tenure, Joe and his
management team created a terrific business from the ground up, and, through
his stewardship during the formative stages of Internet radio, Pandora now
leads with 70% market share. We appreciate his continued strong leadership and
dedication to the Company through this process.”

“Over the last nine years I have enjoyed an extraordinary partnership with
Joe, working with him to grow the Company and build an exceptional team,” said
Tim Westergren, Pandora Founder and Chief Strategy Officer. “I look forward to
continuing to work with Joe to achieve our goals for 2013 and to help assure a
smooth leadership transition.”

The Board of Directors has formed a search committee and will engage a
nationally-recognized search firm to help identify candidates as expeditiously
as possible.

About Pandora

Pandora gives people music they love anytime, anywhere, through connected
devices. Personalized stations launch instantly with the input of a single
"seed" - a favorite artist, song or genre. The Music Genome Project®, a deeply
detailed hand-built musical taxonomy, powers the personalization of Pandora®
internet radio by using musicological "DNA" and constant listener feedback to
craft personalized stations from a growing collection of more than one million
tracks. Tens of millions of people in the U.S. turn on Pandora to hear music
they love.

"Safe Harbor" Statement

This press release contains forward-looking statements within the Private
Securities Litigation Reform Act of 1995, including, but not limited to,
statements regarding the Board’s search for a successor Chief Executive
Officer, its leadership transition plan and its future market opportunity.
These forward-looking statements are based on Pandora's current assumptions,
expectations and beliefs and involve substantial risks and uncertainties that
may cause results, performance or achievement to materially differ from those
expressed or implied by these forward-looking statements. Factors that could
cause or contribute to such differences include, but are not limited to: the
Company’s ability to identify and hire a highly qualified Chief Executive
Officer and potential disruption to the Company’s operations and management
that could result from the transition; the Company’s operation in an emerging
market and its relatively new and evolving business model; the Company’s
ability to increase its listener base and listener hours; its ability to
attract and retain advertisers; its ability to generate additional revenue on
a cost-effective basis; competitive factors; its ability to continue operating
under existing laws and licensing regimes; its ability to establish and
maintain relationships with makers of mobile devices, consumer electronic
products and automobiles; the Company’s ability to manage its growth; its
ability to continue to innovate and keep pace with changes in technology and
its competitors; risks related to service interruptions or security breaches;
and general economic conditions worldwide. Further information on these
factors and other risks that may affect the Company’s business is included in
filings it makes with the Securities and Exchange Commission (SEC) from time
to time, including its Annual Report on Form 10-K and its Form 10-Q for the
current quarter, particularly under the heading "Risk Factors.” These
documents are available online from the SEC or on the SEC Filings section of
the Investor Relations section of the Company’s website at
investor.pandora.com. Information on the Company’s website is not part of this
release. All forward-looking statements in this press release are based on
information currently available to the Company, and the Company assumes no
obligation to update these forward-looking statements in light of new
information or future events.

Contact:

For Pandora
Charles Sipkins, 310-201-2040
csipkins@sardverb.com
or
Paul Kranhold, 415-618-8750
pkranhold@sardverb.com