Digital Music Group Announces Music Content Acquisitions

Digital Music Group Announces Music Content Acquisitions

SACRAMENTO, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a leading worldwide content owner and distributor of digital music and video recordings, today announced three long-term and four short-term distribution agreements with a number of independent record labels totaling over 5,000 audio tracks. Under the terms of the agreements signed with each company, DMGI will distribute these music catalogs to online music stores worldwide.

"Digital Music Group continues to build its music catalog with world-class content," said Mitchell Koulouris, Chief Executive Officer of DMGI. "The transactions announced today underscore our continued commitment to expanding our catalog with high-quality repertoire from the world's best independent labels."

The three new music catalogs under long-term distribution agreements include:

* Music for Little People: A high-quality, award-winning children's music
label designed for people turned off by standard commercial kiddie
fare, with children's albums that feature such artists as Taj Mahal,
Maria Muldaur, Los Lobos, Ladysmith Black Mambazo, Shelley Duvall, and
many others.

* DM Records: Features the catalog of Ichiban Records, an Atlanta-based
label that specialized in blues and Muscle Shoals-style soul, with such
acts as Clarence Carter, Ben E. King, Millie Jackson, Roy Ayers, Slave,
and others. The catalog also includes alternative rock labels Sky and
Naked Language, with such acts as Pylon, The Swans, Moe Tucker, Flat
Duo Jets, Dash Rip Rock, the Fleshtones and others, and whip-hop label
WRAP, which features MC Breed, DJ Smurf, Treacherous Three and more.

* The Cryptic Corporation: This catalog contains a number of audio and
visual recordings by noted avant-garde band The Residents. The catalog
features Residents classics such as Fingerprince, Our Finest Flowers,
Demons Dance Alone, Have a Bad Day, Roadworms, RMX, The King & Eye,
George & James, Stars & Hank Forever, The Mole Show Live, 13th
Anniversary Show Live: Tokyo, Cube E Live and Wormwood Live. Also
featured in the catalog are numerous music videos including versions of
Wormwood Live, Eskimo and dozens of Residents classic tracks.

DMGI also announced the signing of four new independent labels to short-term distribution agreements through its subsidiary, Digital Rights Agency (DRA). The labels signed to new short-term distribution agreements include:

* DRT Entertainment: An independent record label founded in 2003 by Derek
Shulman, Ron Urban and Theodore Green. DRT's artist roster includes:
Artimus Pyledriver, Blindside, Clutch, GWAR, Gentle Giant, Lynam, Soil,
Powerman 5000 and The Rasmus. The label also re-masters and
re-releases older material from their artists. Last year, they
re-released "35th Anniversary" editions of many albums by Shulman's
former band, Gentle Giant.

* ProgRock Records: ProgRock Records' roster includes new, developing
artists as well as established artists, including Planet P (featuring
Tony Carey), Oliver Wakeman (son of Yes' Rick Wakeman), Ajalon, and
Erik Norlander.

* Takeover Records: Formed by the members of the multi-platinum band,
Yellowcard, Takeover Records is an alternative/punk rock label based in
Long Beach, California. Takeover Records features albums from such
alt-rock stalwarts as Yellowcard, Hey Mike!, and Bracket.

* FILMguerrero: Formed by John Askew in the late 1990's as a means to
release the music of his friends and close associates, the label has
never strayed from its original intent of creating a strong visual
aesthetic to complement the "cinematic element" of the music Askew so
admires.

About Digital Music Group, Inc.

Founded in 2005, Digital Music Group Inc. (NASDAQ:DMGI) is a global leader in the digital distribution of independently owned music and music video catalogs. DMGI acquires the digital rights to music and music video catalogs and digitally encodes these files into multiple formats for distribution to online music, mobile, and video stores. Our retailers include: the iTunes Music Store, RealNetworks, Napster, Wal-Mart Music, Yahoo! Music, URGE, OD2, Verizon Wireless, Virgin Mobile, InfoSpace, Google Video, and many others. 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 digital distribution agreements for the Music for Little People, DM Records, Cryptic Corporation, DRT Entertainment, ProgRock Records, Takeover Records, and FILMguerrero catalogs) 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 and mobile channel partners to make the digital music 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

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: Press, 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.; or Investor Relations, Karen Davis, Chief Financial Officer
of Digital Music Group, Inc., +1-916-239-6010, ext. 2505

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

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