DMGI Announces New Long-Term Digital Distribution Agreements

DMGI Announces New Long-Term Digital Distribution Agreements

New Deals Brings 2,000 Classic Rock, Blues, Folk, and Reggae Tracks to Music Fans Everywhere

SACRAMENTO, Calif., March 6 /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 long-term digital distribution agreements with Adelphi Records and Lifesong Records. According to the terms of the agreements, DMGI will digitally distribute the Adelphi Records catalog, including the Reggae Sunsplash recordings, and the Lifesong Records catalog, including American Originals Records, to digital and mobile music channels worldwide.

"I'm pleased to announce these long-term agreements with Adelphi Records and Lifesong Records," said Mitchell Koulouris, CEO of DMGI. "Both of these labels have a rich history of quality rock, folk, blues, and reggae recordings from some of the most legendary artists of each genre."

Adelphi Records is a catalog of folk, blues, jazz, reggae, world and other genres. The Silver Spring, Maryland label was founded in the late 1960s and includes releases on both the Adelphi and Sunsplash labels. Artists on Adelphi include blues greats Roy Buchanan, R.L. Burnside, Rev. Gary Davis, Catfish Hodge, Mississippi John Hurt, Skip James, Furry Lewis, the Nighthawks, Otis Rush, Johnny Shines, Bukka White and others. The label also features folk legends Roy Book Binder, Paul Geremia, John Harbison, the Holy Modal Rounders, Jim Lane, Patrick Sky, and Chris Smither and jazz greats Lennie Breau, Richie Cole, and Phil Woods, among others. Reggae stalwarts Big Youth, Eek a Mouse, Mutabaruka with the Mighty Diamonds, Toots & the Maytals, Yellowman and others make up the Reggae Sunsplash repertoire.

Founded by songwriters Terry Cashman and Tommy West, Lifesong Records had a number of popular releases in the 1970's and 80's from progressive rock band Crack the Sky, songwriter Henry Gross, pop artist Dean Friedman, and rock legend Dion. Lifesong scored a number of hits during this period including the top-ten Billboard Pop hit "Shannon" by Henry Gross, Top 30 hit "Ariel" by Dean Friedman, and critically acclaimed album releases from Crack The Sky including "Safety in Numbers" and "Animal Notes," as well as the critically acclaimed 1978 comeback album "Return of the Wanderer" by Dion. American Originals Records, which is part of the Lifesong catalog, includes the famous Live at the Bluebird Cafe series, recorded at that legendary Nashville venue where songwriters try out new material. This catalog features a number of magical live recordings from such songwriting legends as Steve Earle, Guy Clark and the late Townes Van Zandt, along with live sets by Nashville songwriters such as Don Henry, Bob DiPiero, Don Schlitz, Michael Johnson and others.

Terry Cashman, half of the songwriting duo, Cashman and West, who wrote "You Don't Mess Around With Jim" and "Operator" for Jim Croce, recorded a number of albums for Lifesong including the cult hit "Talkin' Baseball (Willie, Mickey, and The Duke)," a nostalgic ode to America's National Pastime. Cashman also recorded a number of team-specific versions of the song over the years including versions for the New York Yankees, New York Mets, San Francisco Giants, and Seattle Mariners.

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, YouTube, 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 the Adelphi Records and Lifesong Records 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 Store and other online music stores and mobile service providers to make the digital albums and ringtones derived therefrom 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 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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