Musician Glenn Branca approached Bahlman to see if he would be interested in starting a label and releasing a record by Branca. Bahlman knew little about recording, pressing, and distributing records, but Branca had some experience with Theoretical Records. Bahlman agreed and made "Lesson No. 1" the first release by 99 Records. The label distributed primarily through its own store but also through Jem, Important, and Sky Disk. In 1980 and 1981 the label released several records for local bands, some of which had crossover success in dance clubs. Bush Tetras and ESG appeared on the disco charts, and 99 had its most successful releases with ESG and Liquid Liquid.