Digital Music Group Announces Music Content Acquisitions

Digital Music Group Announces Music Content Acquisitions

Reggaeton Nation, Copasetik Recordings, and Invisible Records Added to DMGI Catalog

SACRAMENTO, Calif., Aug. 15 /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 two new long-term distribution agreements and one digital rights acquisition, consisting of over 5,000 tracks in total, with independent record labels. Under the terms of the agreements signed with each company, DMGI will distribute these music catalogs to online music stores worldwide.

The two music catalogs under long-term distribution agreements are:

* Reggaeton Nation: Reggaeton Nation is a catalog of titles by
artists working in the Reggaeton style, a superheated collision of
hip-hop and Latin music genres. Their artists include such names as
Cuban Link, the Co-Stars, Bimbo and Miky Bad Boy.

* Copasetik Recordings: Copasetik Recordings is a hip-hop and
electronica label that has released tracks by such artists as Dr.
Dooom, Peanut Butter Wolf, Rasco, Terranova and more. The label
maintains a solid focus on underground hip-hop sounds, with a reach
into such subgenres as drum 'n' bass, turntablism and downtempo.

Also, Digital Music Group is announcing that it has acquired the digital rights to the Invisible Records catalog. Invisible, founded in the early 1980s, is a Chicago-based record label that specializes in industrial music, a subgenre of rock with a devoted cult following; the label also has released recordings in the punk, dub, and electronica genres. Invisible's catalog includes titles by Pigface, Chris Connelly, Foetus, Genesis P-Orridge, Killing Joke, Sheep on Drugs, Test Dept., the Damage Manual, the Countdown and Throbbing Gristle, among others, spanning the years 1978 to the present day.

"We're pleased to announce these new digital rights acquisition and long-term distribution agreements," said Mitchell Koulouris, Chief Executive Officer of DMGI. "Since our IPO in February, we have been very active in the marketplace -- identifying quality catalogs for acquisition, negotiating with content owners and their counsel, and performing our due diligence prior to closing. We are pleased that our intense efforts in this area are beginning to bear fruit in the form of a number of finalized catalog acquisition and distribution agreements with diverse and respected record labels such as the three announced today. Additionally, we are continuing to expand our business development pipeline as we seek to complete digital distribution agreements with labels and artists around the world."

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 Reggaeton Nation, Copasetik Recordings, and Invisible Records 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.

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: Anders Brown, Chief Operating Officer, ext. 2504, or Investor
Relations, Karen Davis, Chief Financial Officer, ext. 2505, both of Digital
Music Group, Inc., +1-916-239-6010; or Len Hall, VP Media Relations,
+1-949-474-4300, Len@allencaron.com, or Investor Relations, Jesse Deal,
Account Manager, +1-212-691-8087, Jesse@allencaron.com, both of Allen & Caron
Inc., for Digital Music Group, Inc.

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

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