The three-day event had a hefty dose of nostalgia this year with Reed, 67, joining 1980s electronic band Depeche Mode and Jane's Addiction with original lineup among the headliners.
Some 85,000 fans endured rain on Friday and sweltering heat on Sunday in downtown Chicago's Grant Park to listen to more than 140 bands and artists appearing on eight stages, including the offspring of a Beatle: George Harrison's son Dhani and his band TheNewNo2.
Among the modern acts performing at what is billed as the largest alternative music festival in the United States were Britain's acclaimed Arctic Monkeys and Las Vegas pop quartet The Killers.
Steady rain on Friday gave the festival a touch of Woodstock-like mud and grime.
RECESSION PROOF
This year's "Lolla" was put on in the middle of a deep recession which has savaged discretionary spending for many.
Poor ticket sales and lost sponsorships has forced the cancellation of music festivals from Florida to San Francisco to Scotland this year.
But Perry Farrell, Lollapalooza's impresario and Jane's Addition front-man, told local media this week that the popular event is "recession proof."
Ticket sales approaching 230,000 proved him right, and merchandise vendors reported strong traffic as well.
"This is my big trip for the summer. I bought about 20 t-shirts," said Cameron Piechota, 19, of Sioux City, Iowa, watching singer-songwriter Neko Case perform.
Chicago, mindful of its image as it vies for the 2016 Olympic Games, beefed up medical personnel and provided misting stations and cooling buses to help cope with the heat. Vendors distributed free water bottles.
Lollapalooza saw its first death since finding a home in Chicago five years ago. A 39-year-old man died early on Friday afternoon of a heart attack, before most patrons had cracked open their first can of beer.
The festival, which in the 1990s toured the nation each summer, is contracted to stay in Chicago's Grant Park through 2018. Under current terms, if Chicago wins the Olympics, the festival would skip 2016 but run through 2019.
(Editing by Anthony Boadle)
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