DMGI Announces Digital Distribution Deal With Olivia Newton-John

DMGI Announces Digital Distribution Deal With Olivia Newton-John

Pop Diva to Be Guest Judge on 'American Idol' on Wednesday, January 31

SACRAMENTO, Calif., Jan. 31 /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 a long-term digital distribution agreement with pop music icon Olivia Newton-John. Under the terms of the agreement, DMGI will distribute four of Newton-John's albums, including "Grace & Gratitude," "Indigo," "Stronger Than Before," and "Gaia," to online music stores worldwide for a term of three years.

"Olivia Newton-John is one of the most successful recording artists of the 20th century," said Mitchell Koulouris, Chief Executive Officer of DMGI. "With fourteen top-ten hits, five number one hits, five top-ten pop albums, and four Grammy awards to her credit (including Record of the Year honors), Olivia Newton-John is considered one of the great female vocalists of our generation. We're proud to be Olivia's exclusive distribution partner."

"I am so happy to be able to announce my affiliation with such a wonderful company whose technology allows my music to be enjoyed by everyone," said Newton-John.

Additionally, Newton-John will be featured as a guest judge on the hit Fox television show, "American Idol" on Wednesday, January 31.

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 distribution of music from Olivia Newton-John) 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 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
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, Len Hall, VP Media Relations of Allen & Caron Inc.,
+1-949-474-4300, Len@allencaron.com, for Digital Music Group, Inc.; or
Investors, 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.dmgi.com/

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