Digital Music Group, Inc. Announces Pricing of Initial Public Offering

Digital Music Group, Inc. Announces Pricing of Initial Public Offering

SACRAMENTO, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI) announced today the pricing of its initial public offering of 3,900,000 shares of its common stock at $9.75 per share (before underwriting discounts and commissions). All of the shares of common stock are being offered by the company. Digital Music Group has granted the underwriters a 45-day over-allotment option to purchase up to an additional 585,000 shares. Digital Music Group intends to use substantially all of the net proceeds of the initial public offering to acquire or license digital rights to sound recordings.

The shares will begin trading on the Nasdaq National Market under the symbol "DMGI" on February 2, 2006, and the offering is expected to close on February 7, 2006. The shares are being sold through underwriters led by I-Bankers Securities, Inc. and FTN Midwest Securities Corp.

Copies of the final prospectus related to the offering can be obtained by contacting I-Bankers Securities, Inc. at: 1560 E Southlake Blvd, Ste. 232, Southlake, TX 76092 (Telephone 817-416-2265). The prospectus will also be available on the Securities and Exchange Commission website at http://www.sec.gov/ .

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on February 1, 2006, and the public offering is being made by means of a prospectus. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Digital Music Group, Inc.

Founded in 2005, Digital Music Group, Inc. is focused on helping consumers worldwide to experience more music, in more ways. We acquire the digital rights to music recordings and process these recordings into digital format for distribution to online music stores like Apple iTunes Music Store, MSN Music, RealNetworks, Napster, Wal-Mart Music and Yahoo! Music, where they are available for purchase by consumers via downloading.

NOTE: Digital Music Group is a trademark of Digital Music Group, Inc. Other names mentioned herein are the property of their respective owners. Press Contact:

Digital Music Group, Inc.:
Mitchell Koulouris, Chief Executive Officer, and Anders Brown, Chief
Operating Officer, Telephone: 916-239-6010

Source: Digital Music Group, Inc.

CONTACT: Mitchell Koulouris, Chief Executive Officer, or Anders Brown,
Chief Operating Officer, both of Digital Music Group, Inc., +1-916-239-6010

Web site: http://www.digitalmusicgroupinc.com/

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