DMGI Digital Music (MM)

Company Also Announces New Agreements With Several Leading Independent Labels SACRAMENTO, Calif., May 22 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a content owner and global leader in the digital distribution of independently owned music and video catalogs, announced today a digital distribution agreement between its Digital Rights Agency subsidiary and Wink Martindale Enterprises for the distribution of radio interviews with artists including Herb Albert, Frankie Avalon, Ray Charles, Nat "King" Cole, Ella Fitzgerald, Roberta Flack, Barry Manilow, Roy Orbison, Kenny Rogers, Frank Sinatra, Sarah Vaughn and Barry White. "We are very pleased to add Wink Martindale as well as a new group of fantastic independent labels to the DRA family," said Tuhin Roy, Chief Strategy Officer at DMGI and President of DRA. "The deals announced today make it clear that DRA continues to be identified by top labels as a leading provider of cutting edge digital distribution and marketing services. We are looking forward to working with these exciting new clients to build robust digital revenue streams," said Mr. Roy. The seventy-five Wink Martindale interviews were originally aired on KMPC in Los Angeles between 1973 and 1985. They will be delivered via download on the iTunes music store, through subscription services such as Real Network's Rhapsody and Napster, and via mobile download from carriers including Verizon and Sprint. DMGI also plans to package certain of the interviews with previously acquired masters by the interviewed artists to make exclusive digital-only albums available to consumers. Other digital distribution agreements announced today include cutting edge independent labels and distributors Megahit Records, Open Grave Records, Parasol Records, SAIFAM, Urban Music Group, Unified Product Distribution, Wreckless Records and WMP Media. Megahits Records -- Los Angeles-based Megahit Records has succeeded in creating a reputation as a quality source for dance music with a European flavor. In the early 2000s, Megahit enjoyed success with its Teckno compilation series which introduced popular European dance artists to U.S. audiences. Megahit also releases numerous DJ mix compilations on its house imprint MTrax. Among the well known titles in the Megahit catalog are its Tekno and Cafe Paris compilation series, as well as albums by Chris Cox, Ron Thomas and Patrice Strike. Open Grave Records -- Whitehall, PA-based Open Grave Records was created in 2006 as a trustworthy outlet for metal artists. Open Grave's artists include End of Destiny, Downlord, Kekal and The Everscathed. Parasol Records -- Urbana-Champaign, Illinois-based Parasol Records and associated labels Mud, Spur, Hidden Agenda, Galaxy Gramophone, and Reaction were a natural outgrowth of Parasol Mail Order, which opened its mailbox in 1991 and is considered a premier mail order source for independent pop music. The majority of these artists played guitar-driven pop music as evidenced by releases from Velvet Crush, Three Hour Tour, and Brian Leach. SAIFAM -- The SAIFAM GROUP, based in Lugano, Italy, has been a leading European dance label group since 1981, with more than 50 sublabels. Among the hit dance records released by the SAIFAM GROUP are Hey, Hey Guy by Ken Laszlo, Tell By Your Eyes by Dr. Zivago with more than 500,000 copies sold worldwide, and What's Up by DJ Miko with more than one million copies sold worldwide. Urban Music Group -- This young urban label based in Fort Lauderdale, Florida, was created around the first release by Rachel Brown, a South Florida R&B mainstay whose first single "Let's Fall in Love Again" reached #1 on the Billboard Hot R&B/Hip Hop single chart. The company plans to release the full-length follow-up to Rachel Brown's smash single in July, 2007. Unified Product Distribution -- Founded in 1998 as a studio and independent recording label, UPD has evolved into a full service distributor specializing in local, regional, and national distribution. Located in downtown Atlanta, UPD maintains an ear to the beat and buzz of the Southeast's urban music scene. By maintaining many links and roots throughout the city and the region, UPD is fast becoming a distributor of choice for southern hip hop artists. Leading UPD-distributed artists include Thugz Nation and Gucci Mane. WPM Media -- Switzerland-based WPM Media produces a number of leading electronic music compilation series including the Chill Cities, Chill House and De Luxe series. The company markets and distributes it titles throughout Europe, Asia and North America. Wreckless Entertainment -- Tacoma, WA-based Wreckless Entertainment was founded in 2000 by Christopher Holden, also known as hip-hop producer and artist A.G., who's debut single Let Me See Something landed at #8 on the Billboard Hot Singles Chart. About DMGI Founded in 2005, Digital Music Group Inc. (NASDAQ:DMGI) is a content owner and global leader in the digital distribution of independently owned music and video content. DMGI acquires the digital rights to media catalogs and digitally encodes them into multiple formats for distribution to digital entertainment services operating over the Internet and wireless, cable and mobile networks. Our digital entertainment service partners include: the iTunes Store, Google Video, YouTube, AOL/In2TV, RealNetworks, Napster, Wal-Mart Music, MusicNet, Verizon, Sprint, InfoSpace, Moderati, Zingy, 9 Squared, and many others. For more information, please visit http://www.dmgi.com/. Digital Music Group is a trademark of Digital Music Group, Inc. Other names mentioned herein are the property of their respective owners. Forward-Looking Statements This release contains forward-looking statements (including, without limitation, information regarding Digital Music Group's distribution agreements with Wink Martindale Enterprises, Megahits Records, Open Grave Records, Parasol Records, SAIFAM, Urban Music Group, Unified Product Distribution, WPM Media and Wreckless Entertainment) that involve risks and uncertainties that could cause the results of Digital Music Group to differ materially from management's current expectations. Actual results may differ materially due to a number of factors including, among others: unforeseen difficulties assembling the digital albums; potential changes in consumers' tastes and preferences in music; and our dependence on the iTunes Store and other online music stores to make the digital albums available for purchase by consumers. The matters discussed in this press release also involve risks and uncertainties described in Digital Music Group's most recent filings with the Securities and Exchange Commission, including its Annual Report for 2006 on Form 10-K filed with the SEC on March 30, 2007 and its Quarterly Report on Form 10-Q filed with the SEC on May 14, 2007. Digital Music Group assumes no obligation to update the forward-looking information contained in this release. Press Contact Allen & Caron, Inc.: Len Hall, VP Media Relations, Telephone: (949) 474-4300 e-mail: Investor Relations Contact Digital Music Group, Inc.: Karen Davis, Chief Financial Officer, Telephone: (916) 239-6010 x2505 Allen & Caron, Inc.: Jesse Deal, Account Manager, Telephone: (212) 691-8087 e-mail: DATASOURCE: Digital Music Group, Inc. CONTACT: Press, Len Hall, VP Media Relations of Allen & Caron, Inc., +1-949-474-4300, , for Digital Music Group, Inc.; or Investor Relations, Karen Davis, Chief Financial Officer of Digital Music Group, Inc., +1-916-239-6010, ext. 2505; or Jesse Deal, Account Manager of Allen & Caron Inc., +1-212-691-8087, , for Digital Music Group, Inc. Web site: http://www.dmgi.com/

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