Digital Music Group Announces Music Content Acquisitions

Digital Music Group Announces Music Content Acquisitions

New Distribution Agreements Include Top Latin, Classical Labels

SACRAMENTO, Calif., Nov. 21 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a content owner and global leader in the digital distribution of independently owned music and video catalogs, today announced four new digital distribution agreements with independent record labels, consisting of over 10,000 music recordings. Under the agreements signed with each company, which have terms ranging from two to 10 years, DMGI will distribute these catalogs to online music stores worldwide.

"Digital Music Group continues to add outstanding content to our catalog of music distributed through digital channels," said Mitchell Koulouris, Chief Executive Officer of DMGI. "The agreements announced today underscore our continued commitment to expanding our catalog with diverse, high-quality repertoire from the world's best independent labels."

The four new digital distribution agreements announced today include:

* Hacienda Records: A record label and recording studio founded 30
years ago in Corpus Christi, Texas, Hacienda has established itself
as one of the premier Latino record labels and recording studios. Its
catalog includes the tejano, traditional Tex-Mex, conjunto and
norteno music genres, along with rock en Espanol, salsa, merengue,
rap, pop, gospel and Christmas music. Hacienda's catalog features
recordings by the recently deceased country music icon, Freddie
Fender, along with more contemporary Latino artists.

* Evangeline Recorded Works, Ltd.: Evangeline is a label founded by
English music-business veterans Andrew Lauder and Pete Macklin and
includes repertoire spanning 1960s and 1970s rock, country and R&B,
Americana and roots music acts.

* Brilliant Classics: Brilliant Classics is an extensive catalog of
classical music, opera and early music. The tracks range from
well-known "warhorses" to more obscure works, some from the
Renaissance and Baroque eras, while others are 20th-century
compositions. The performances are mostly by orchestras, ensembles
and performers from Western Europe, although there are some Eastern
European performers, too. Names include such luminaries as the
Concertgebouw Chamber Orchestra from Holland, the Berlin Symphony and
many others.

* The Loser's Lounge: The Loser's Lounge is a series of performances
arranged around a single artist's catalog, from such well-known acts
as Queen, Burt Bacharach, Prince and the Bee Gees to cult favorites
like Serge Gainsbourg, or around a theme like "Legends of the Lower
East Side." Staged at various locations in New York City, a Loser's
Lounge performance features a house band led by keyboardist-guitarist
Joe McGinty, along with an array of guest performers, including such
New York favorites as Nellie McKay, Jon Flansburgh (They Might Be
Giants), Ellen Foley (of "Paradise by the Dashboard Light" fame),
Debby Schwartz (the Aquanettas), Jenni Muldaur, Jim Thirlwell
(Scraping Foetus off the Wheel) and many others.

In addition to releasing the newly-acquired catalogs to digital download stores worldwide, DMGI intends to release portions of these catalogs through ringtone, mastertone, and over-the-air download sales channels.

About DMGI

Founded in 2005, Digital Music Group, Inc. (NASDAQ:DMGI) is a content owner and global leader in the digital distribution of independently owned music, TV, film and video catalogs. DMGI acquires the digital rights to media catalogs and digitally encodes them into multiple formats for distribution to online music, mobile, and video stores. Our retailers include: the iTunes Music Store, Google Video, RealNetworks, Napster, Wal-Mart Music, Yahoo! Music, InfoSpace, Moderati, Zingy, 9Squared, 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 with Hacienda Records, Evangeline, Brilliant Classics, and Loser's Lounge and making these music catalogs available for digital distribution worldwide) 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 these recordings into digital albums; acceptance and adoption of the digital format by consumers and potential changes in consumers' tastes and preferences in music; the extent to which these catalogs will appeal to consumers; our ability to successfully enter into new or expanded sales channel relationships; our ability to release portions of these catalogs through ringtone, mastertone, and over-the-air download sales channels; and our dependence on the iTunes Music 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

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

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

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