DMGI Announces New Digital Distribution Agreements for Classic Television Shows

DMGI Announces New Digital Distribution Agreements for Classic Television Shows

The Bill Cosby Show, Route 66, and The Super Dave Show Highlight Additions to the DMGI Classic TV and Comedy Networks

SACRAMENTO, Calif., July 2 /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 a number of new long-term digital distribution agreements for classic television content totaling over 300 episodes including The Bill Cosby Show, Route 66, The Super Dave Show, and Dangerous Assignment.

"We're pleased to announce the addition of a number of great video catalogs to the DMGI video library," said Mitchell Koulouris, CEO of DMGI. "Today's announcement includes timeless classic television properties that extend our position as a market leader in digital video distribution."

The Bill Cosby Show

Aired for two seasons on NBC between 1969 and 1971, The Bill Cosby Show is a lighthearted comedy starring Bill Cosby playing the role of Chet Kincaid, physical education teacher at a Los Angeles high school. The Bill Cosby Show was humorous yet emphasized warmth, intelligent character studies and plausible, real life situations. The plot frequently centered around lessons learned in life, which were explained in the classic Cosby style. The Bill Cosby Show was nominated for four Emmy Awards including Outstanding Comedy Series, Outstanding New Series, and Outstanding Continued Performance by an Actor in a Leading Role in a Comedy Series.

Route 66

This classic television series starred George Maharis and Martin Milner as two young men driving around the US working at odd jobs, helping people, and searching for adventure. The Route 66 catalog includes over 100 episodes, created by acclaimed directors such as Sam Peckinpah and Arthur Hiller and featuring a variety of guest stars such as Rod Steiger, Martin Sheen, Buster Keaton, Robert Redford, Boris Karloff, Peter Lorre, and Robert Duvall. Route 66 enjoyed two Emmy nominations in 1962.

The Super Dave Show

Regarded by some as one of the funniest television shows ever, The Super Dave Show starred Bob Einstein as "accomplished" stuntman Super Dave Osborne. Unfortunately for Super Dave, he rarely succeeds at the stunts he aims to accomplish. Super Dave is a regular on popular talk shows such as the Late Show with David Letterman and Jimmy Kimmel Live. Einstein received the Cable Ace Award for Best Actor in a Comedy Series for his role as Super Dave.

Dangerous Assignment

Starring Brian Donlevy as Steve Mitchell, undercover agent for the U.S. government, this 1950's spy thriller includes over 50 episodes. In each episode, Donlevy was sent off by "The Commissioner" to exotic locations such as Burma, Mexico City, or behind the Iron Curtain where he encounters adventure and international intrigue. The show also featured Hugh Beaumont of Leave It To Beaver fame in three episodes and is considered one of the overlooked treasures of the golden age of television.

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, Joost, mSpot, Veoh, 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 of The Bill Cosby Show, Route 66, The Super Dave Show, and Dangerous Assignment video catalogs and making these catalogs available through digital entertainment services) that involve risks and uncertainties that could cause the results of DMGI 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 and processing the video content; the market demand for digital video recordings and potential changes in consumers' tastes and preferences in video; and our dependence on digital entertainment services for the distribution and sale of our video content. The matters discussed in this press release also involve risks and uncertainties described in DMGI'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
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 investors, Karen Davis,
Chief Financial Officer of Digital Music Group, Inc., +1-916-239-6010; 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.digitalmusicgroupinc.com/

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