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Within the British alternative rock scene of the early 1990s, Stereolab presented a unique style. Combining the melodic pop of the 60s with the so-called art rock, more precisely the krautrock of bands such as Faust and Neu!, the group built an extensive discography absorbing other influences, such as bossa nova, which resulted in a retro-futuristic pop, creating a unique identity in the group's sound.

The band was formed in 1990 by the Englishman Tim Gane (guitar, keyboards) and the Frenchwoman Laetitia Sadier (vocals, keyboards, guitar, trombone), who writes and sings in French and English. Both had been members of the band McCarthy. At the beginning of their career, the duo worked with drummer Joe Dilworth (Th' Faith Healers) and bassist Martin Kean (Chills). Occasionally, Gina Morris collaborated on backing vocals.

Stereolab's first album, Peng!, was released by Too Pure Records in 1992, when the band gained two new official members, Mary Hansen (keyboards, vocals) and Andy Ramsay (drums).

With Gane, Sadier, Hansen, Ramsay, guitarist Sean O'Hagan and bassist Duncan Brown, the band released the album The Groop Played Space Age Batchelor Pad Music in 1993, which received positive reviews, leading the band to sign with Elektra Records.

Through Elektra Records, the band released a series of albums between 1994 and 2004, most notably Emperor Tomato Ketchup (1996). After recording this album, bassist Duncan Brown was replaced by Richard Harrison. Also in the 1990s, Stereolab released the albums Dots and Loops (1997) and Cobra and Phases Group Play Voltage in the Milky Night (1999).

In 2001, the album Sound-Dust was released. In December 2002, Mary Hansen died at the age of 36 while riding her bicycle and was hit by a truck. The first album without Hansen, Margerine Eclipse, was released in 2004. This album sold poorly, which led to Elektra terminating the band's contract.

Fab Four Suture, a compilation of singles released by Stereolab between 2005 and 2006, was released by Too Pure Records in 2006. In 2008, a new studio album, Chemical Chords, was released on the 4AD label. Featuring tracks recorded during the Chemical Chords sessions, the tenth album, Not Music, was released in 2010.

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