DMGI Enters Into Revenue Sharing Content Agreement with YouTube

DMGI Enters Into Revenue Sharing Content Agreement with YouTube

Vast Catalog of Classic Television Shows and Top Titles from Some of Music's Biggest Names to be Offered to YouTube Community

SACRAMENTO, Calif., Feb. 12 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a content owner and global leader in the digital distribution of independently owned music, television, film and video catalogs, today announced it has entered into an agreement with YouTube, Inc. to make certain components of DMGI's video catalog, which includes some of the world's most beloved television and film properties, available to the YouTube community. Additionally, DMGI has agreed to allow certain music, where DMGI owns or controls the music publishing rights, to be in user-generated videos which are uploaded to YouTube.

DMGI currently owns or controls the digital distribution rights to more than 4,000 hours of video content, including classic television episodes of "Gumby," "I Spy," "My Favorite Martian," "Peter Gunn," and more. Additionally, DMGI owns or controls publishing for approximately 40,000 music recordings across many musical genres.

"We're very excited to introduce our video and controlled-publishing music catalogs to the largest audience for video content available on the Internet," said Mitchell Koulouris, Chief Executive Officer of DMGI. "Not only is YouTube helping to promote independently owned content but will also provide a new revenue source for DMGI through online advertising."

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 Store, Google Video, BitTorrent, Movielink, 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 agreement with YouTube for television, film, and video catalogs and controlled-publishing music catalogs, DMGI's plans to use YouTube's filtering technologies to identify its copyrighted content to in order to either license its use on YouTube or have it removed, and DMGI's opportunity to earn revenue through revenue sharing of online advertising revenue) 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: our success in this area depends on our ability to acquire and offer music and video recordings that appeal to consumers' tastes and preferences which are unpredictable; we may encounter unexpected difficulties in processing our content into digital formats or in meeting YouTube's technical requirements; we will be dependent on YouTube's filtering technologies to identify our copyrighted content; and we will be dependent on revenue sharing of online advertising placed by YouTube . 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 of Allen & Caron, Inc.,
+1-949-474-4300, Len@allencaron.com; or Investor Relations: Karen Davis, Chief
Financial Officer of Digital Music Group, Inc., +1-916-239-6010 x2505; or
Jesse Deal, Account Manager of Allen & Caron Inc., +1-212-691-8087,
Jesse@allencaron.com

Web site: http://www.digitalmusicgroupinc.com/
http://youtube.com/

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