Distorted Reality was formed by Martha M. Arce from Miami , USA and Christian Kobusch from Berlin , Germany . Martha is the former lead singer of Deep Red, (left in Jan. 2003) the American Electro-Goth formation. While on tour in Germany with Deep Red as the support for Project Pitchfork, a chance meeting would occur.
After a concert in Herford , Germany , Martha and Christian met and discussed their ideas. Via e-mail they kept in touch and formed Distorted Reality in 1997. Because of the distance the production took a long time. However, as a result of good studio conditions and a mutual desire and willingness to make this project work, a collection of innovative and unique songs were created.

Since their formation Distorted Reality have appeared on numerous CD compilations and radio shows mainly across North America and Europe . An array of European and American music magazines have featured Distorted Reality, hailing their talents. Among these are the German magazines Zillo, Sonic Seducer and Orkus the Belgium/American Sideline and the Russian Rockcity. In addition, Distorted Reality was ranked No. 4 in the category "Best Newcomer 2002" in the Grenzwellen.de online poll.

Distorted Reality 's debut album “The Fine Line Between Love and Hate” was produced together with Bruno Kramm (Das Ich) and released on May 17, 2002 on Accession Records containing remixes by Propaganda, Sabotage qcqc and Noyce™.

On May 13, 2003 “The fine Line...” was re-released on the American record label Nilaihah Records. The North American version contains additional remixes by Assemblage 23, Forma Tadre, cut.rate.box and Null Device.

Besides smaller stage appearances Distorted Reality performed live at the 12th Wave Gotik Treffen in Leipzig ( Germany ) and supported a Psyche concert in Tampa ( Florida , USA ). As a part of the “Electronic Pleasures” Festival Tour in November 2004 Distorted Reality played in Berlin , Hanover and Augsburg ( Germany ). Distorted Reality signed an agreement with booking agency RGKP to increase the stage presence of the band.

In 2004 Martha and Christian worked on their second album “Daydreams and Nightmares” together with Andreas Meyer (Forma Tadre, Newt). Artists like Bruno Kramm, Daniel Myer (Haujobb), Dust of Basement and Chris L. (Agonoize) contribute remixes to this album. One highlight is a cover version of Billy Idol's “Rebel Yell”.

Year 2005 sees a big change for Distorted Reality: With the completion of “Daydreams and Nightmares” Martha has moved to Berlin in order to give her full attention to the band and the music. The band also played at the Wave Gotik Treffen and the Secret Garden Festival in 2005 along with other shows and festivals.