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In 1997, the band released a compilation album, My Body, The Hand Grenade, which featured material from the band's earliest recordings in 1989 up until 1995, and, in September 1998, released their third studio album, Celebrity Skin, which featured a stark power pop sound as opposed to the group's earlier punk rock influences.

Rolling Stone called the album " accessible, fiery and intimate — often at the same time [...] a basic guitar record that's anything but basic.

" Celebrity Skin went on to go multi-platinum, and topped " Best of Year " lists at Spin, the Village Voice, and other periodicals.

The album garnered the band their first and only No. 1 hit single on the Modern Rock Tracks chart with the title track " Celebrity Skin ".