DMGI Announces Digital Distribution Agreements with Mush Records, Joyful Noise Recordings and Clockwize Online

DMGI Announces Digital Distribution Agreements with Mush Records, Joyful Noise Recordings and Clockwize Online

SACRAMENTO, Calif., June 27 /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, announced today worldwide digital distribution agreements between its Digital Rights Agency subsidiary and Mush Records, Joyful Noise Recordings and Clockwize Online.

"We are very pleased to welcome this well respected group of labels to the DRA family," said Tuhin Roy, Chief Strategy Officer at DMGI and President of DRA. "We believe our continuing success in signing great labels in a competitive environment is a reflection of DRA's focus on providing strong marketing support to our clients and our long track record of building thriving digital businesses with our labels," said Mr. Roy.

Mush Records -- Mush Records is a well respected Los Angeles-based independent record label focused on indie rock, indie hip hop and electronic music. Key artists include Her Space Holiday, Aesop Rock and Daedelus. The label frequently licenses tracks to larger indie labels including Ninja Tunes, Warp Records and the Leaf Label. The Mush catalog includes 60 full length albums.

Joyful Noise Recordings -- Indianapolis-based Joyful Noise has built a strong reputation putting out critically acclaimed indie rock from artists including Abner Trio, LAFCADIO and Stationary Odyssey.

Clockwize Online -- Copenhagen, Denmark-based Clockwize Online is a dance label that has scored chart-topping hits including Infernal's "From Paris to Berlin." The deal announced today will also include music videos produced by Clockwize Online.

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 and video content. DMGI acquires the digital rights to media catalogs and digitally encodes them into multiple formats for distribution to digital entertainment services operating over the Internet and wireless, cable and mobile networks. Our digital entertainment service partners include: the iTunes Store, Google Video, YouTube, AOL/In2TV, RealNetworks, Napster, Wal-Mart Music, MusicNet, Verizon, Sprint, InfoSpace, Moderati, Zingy, 9 Squared, and many others. For more information, please visit http://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 agreements with Mush Records, Joyful Noise Recordings and Clockwize Online) 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, including its Annual Report for 2006 on Form 10-K filed with the SEC on March 30, 2007 and its Quarterly Report on Form 10-Q filed with the SEC on May 14, 2007. Digital Music Group assumes no obligation to update the forward-looking information contained in this release.

Press Contact

Foeller Communications.: Kurt Foeller, Telephone: 415-578-3251
e-mail: dmgi@foellercom.com

Investor Relations Contact

Digital Music Group, Inc.: Karen Davis, Chief Financial Officer,
Telephone: (916) 239-6010 x2505

Allen & Caron Inc.: Michael Mason, Account Manager,
Telephone: (212) 691-8087
e-mail: michaelm@allencaron.com

First Call Analyst:
FCMN Contact:

Source: Digital Music Group, Inc.

CONTACT: Kurt Foeller of Foeller Communications, +1-415-578-3251,
dmgi@foellercom.com, for Digital Music Group, Inc.; or Karen Davis, Chief
Financial Officer, of Digital Music Group, Inc., +1-916-239-6010, ext. 2505;
or Michael Mason, Account Manager of Allen & Caron Inc., +1-212-691-8087,
michaelm@allencaron.com, for Digital Music Group, Inc.

Web site:

http://www.dmgi.com/

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