Digital Music Group Announces New Content Acquisition

Digital Music Group Announces New Content Acquisition

Four New Labels, 3,500 Tracks Added to the Growing DMGI Catalog

SACRAMENTO, Calif., June 27 /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 four new long-term distribution agreements, consisting of over 3,500 tracks in total, with independent catalogs and labels. Under the terms of the long-term digital distribution agreements signed with each company, DMGI will distribute their respective catalogs to online music stores worldwide on an exclusive basis.

The four music catalogs announced today are:

Swan Records -- Swan Records was founded in 1957 in Philadelphia and is
home to such artists from the late 1950s and 1960s as Danny and the
Juniors, Billie and Lillie, Dickie Do and the Don'ts, The Rockin' Rebels,
and Link Wray. The catalog also includes master recordings of notable
artists such as The Three Degrees, Jerry Jaye, The Dovells, The Royal
Teens, and The Strangeloves.

Turtle Island Music -- Turtle Island Music Inc is one of the largest
Native American music labels. Established in 1996 Turtle Island Music
represents some of the most talented and well-known Aboriginal, Native
American and Metis artists, including Little Island Cree, Wildhorse, and
Winston Wuttunee. Turtle Island has won numerous awards from the major
Canadian and American music associations for capturing traditional music
that has been handed down for hundreds of generations.

Red Lightning Records -- Red Lightning Records is one of Europe's longest
established post-war blues labels. Artists include Tommy Tucker, Big Joe
Williams, Albert Collins, and Charlie Musslewhite.

Passport Audio -- Passport Audio is a producer and worldwide distributor
of blues, pop, jazz, soundtrack, easy listening and gospel music. Artists
include worldwide favorites such as Mantovani, Lloyd Price and Art Tatum.

"We're pleased to announce these new long-term distribution agreements and our affiliation with such quality record labels," said Mitchell Koulouris, Chief Executive Officer of DMGI.

"We have been diligently building our content acquisition pipeline and these new deals represent the early return on that investment."

Additionally, DMGI intends to release portions of these catalogs 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.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 of the Swan Records, Turtle Island Music, Red Lightning Records, and Passport Audio catalogs and making these catalogs 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: unforeseen difficulties assembling the digital albums; potential changes in consumers' tastes and preferences in music; and our dependence on the iTunes Music 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. Digital Music Group assumes no obligation to update the forward- looking information contained in this release.

Contact: Media: Investors:
Len Hall, VP Media Relations Jesse Deal, Account Manager
Allen & Caron Allen & Caron
949 474 4300 949 474 4300
len@allencaron.comjesse@allencaron.com
or or
Anders Brown, COO Karen Davis, CFO
Digital Music Group, Inc. Digital Music Group, Inc.
916 239 6010 x 2504 916 239 6010 x 2505

Source: Digital Music Group, Inc.

CONTACT: Anders Brown, COO, +1-916-239-6010 ext. 2504, or Karen Davis,
CFO, +1-916-239-6010 ext. 2505, both of Digital Music Group, Inc.; or Media,
Len Hall, VP Media Relations, len@allencaron.com, or Investors, Jesse Deal,
Account Manager, jesse@allencaron.com, both of Allen & Caron, +1-949-474-4300,
for Digital Music Group, Inc.

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

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