Digital Music Group Announces Long-Term Distribution Agreement With Pipeline Music, Inc.

Digital Music Group Announces Long-Term Distribution Agreement With Pipeline Music, Inc.

SACRAMENTO, Calif., May 23 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a content owner and distributor of digital music recordings focused on past hits, out-of-print, back catalog, and independent label recordings, today announced that it has entered into a long-term distribution agreement with Pipeline Music, Inc., a California-based classical music label, whose catalog includes over 2,000 music recordings from Russian and other former Soviet-bloc performers. Under the terms of the distribution agreement, DMGI will distribute Pipeline Music's catalog to online music stores worldwide on an exclusive basis for a five-year period. This is the first time Pipeline Music's catalog will be available in the digital music marketplace.

Expanding Pipeline Music's Audience

The Pipeline Music catalog will be integrated into the Digital Music Group distribution network and be delivered to online music stores worldwide. "We're excited to be distributing the Pipeline Music catalog," said Mitchell Koulouris, Chief Executive Officer of Digital Music Group. "Classical music is one of the fastest-growing genres in the digital music marketplace and we're pleased Pipeline Music chose us to be their distribution partner." Additionally, DMGI intends to release portions of the Pipeline Music catalog through ringtone, mastertone, and over-the-air download sales channels as they are added as part of the Digital Music Group distribution network.

About Digital Music Group, Inc.

Founded in 2005, Digital Music Group, Inc. (NASDAQ:DMGI) is focused on helping consumers worldwide to experience more music, in more ways. Digital Music Group acquires the digital rights to music recordings and processes these recordings into digital format for distribution to online music stores such as the iTunes Music Store, MSN Music, RealNetworks, Napster, Wal-Mart Music and Yahoo! Music, where they are available for purchase by consumers via downloading. For more information, please visit www.digitalmusicgroupinc.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 of the Pipeline Music catalog and making the Pipeline Music catalog available in the current and future digital channel) 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: potential delays in receiving the master recordings; potential changes in consumers' tastes and preferences in music; our ability to digitize the recordings, our ability to make the catalog available in ringtone, mastertone and other channels; and our dependence on Apple iTunes Music Stores 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. Digital Music Group assumes no obligation to update the forward-looking information contained in this release.

Press Contact

Digital Music Group, Inc.: Anders Brown, Chief Operating Officer,
Telephone: (916) 239-6010 x2504
Allen & Caron Inc.: Len Hall, VP Media Relations,
Telephone: (949) 474-4300, e-mail: Len@allencaron.com

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: Jesse@allencaron.com

Source: Digital Music Group, Inc.

CONTACT: Media, Anders Brown, Chief Operating Officer of Digital Music
Group, Inc., +1-916-239-6010, ext. 2504; or Len Hall, VP Media Relations of
Allen & Caron Inc., +1-949-474-4300, Len@allencaron.com, 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, Jesse@allencaron.com, for
Digital Music Group, Inc.

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

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Profile: International Entertainment