Digital Music Group Grabs Established Catalogs

Digital Music Group, a content owner and digital distributor, has acquired a batch of music and video content from a number of established artists including Todd Rundgren, The Alarm, Dwight Twilley, Richard Clayderman, and Wayne Newton.  The varied deals total 3000 tracks including some previously unreleased recordings. (Press release after the jump.)

DMGI Announces New Music Acquisitions

Company Adds Music and Video From Todd Rundgren, The Alarm, Dwight Twilley, Richard Clayderman, and Wayne Newton to Growing Music Catalog

SACRAMENTO, Calif., April 19 /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 the acquisition of both music and video content through digital distribution, master purchase, and digital rights purchase agreements with artists including Todd Rundgren, The Alarm, Dwight Twilley, Richard Clayderman, and Wayne Newton.  The total number of music tracks included under these agreements is approximately 3,000.

"DMGI continues to build its catalog with high quality content from legendary artists, including unreleased, rare, and never-before-heard tracks," said Mitchell Koulouris, Chief Executive Officer of DMGI.  "Today’s announcement of previously unreleased work by these artists underscores our commitment to acquiring and making available great music to fans and music enthusiasts around the world."

  The agreements announced today include:

  * Todd Rundgren/Utopia: The Todd Rundgren and Utopia archive features
    approximately 2,000 never-before-released live recordings, demos,
    out-takes, and alternate versions from 1977 to 2000.  It also includes a
    significant array of never-before seen video footage as well.  Rundgren,
    both an accomplished songwriter and producer whose hits "I Saw the
    Light," "Can We Still Be Friends," "Hello, It’s Me," and "Bang the Drum"
    vaulted him from a cult following to stardom, formed Utopia in the
    mid-1970s.  The archive includes never before seen or heard rare audio
    and video performances from both Rundgren as a solo artist and Utopia.
    The first of these previously unreleased audio and video performances
    will be released in the summer of 2007.

  * The Alarm: One of the true powerhouses of the 1980s, The Alarm recorded
    some of the most important rock records of the decade including
    "Declaration" and "Strength."  This video catalog features some of the
    great performances of the band including music videos and never before
    seen live performances.  The catalog also features the VH1 special
    "Bands Reunited."

  * Dwight Twilley: This power pop icon scored two top-twenty hits with "I’m
    on Fire" in 1975 and "Girls" (featuring Tom Petty on background vocals)
    in 1984.  This archive features never-before released masters from the
    power pop legend including demo recordings of "10,000 American Scuba
    Divers Dancing," "Wild Dogs," as well as other rare and
    previously-unreleased tracks.  Also included are cover versions of The
    Beatles’ "Come Together," Badfinger’s "I Can’t Take It," Marvin Gaye’s
    "I’ll Be Doggone," and Sam Cooke’s "Twistin’ the Night Away."  These
    previously unreleased tracks will be issued in a series of five
    compilations starting in the summer of 2007.  In addition, the
    compilation "The Best of the Rest of Dwight Twilley" will also be
    released in the summer of 2007 as well as an extended and remastered
    version of Twilley’s classic Christmas album, "Have a Twilley
    Christmas."

  * Richard Clayderman: International pop instrumentalist Richard Clayderman
    is referred to in the Guinness Book of World Records as "the most
    successful pianist in the world."  With a broad international following,
    Clayderman routinely sells out concerts and sells millions of records.
    His first album sold more than 20 million copies and a live concert
    broadcast on Chinese television in 1987 attracted more than 800 million
    viewers.  This catalog features Clayderman at his best including nearly
    1,000 never-before released romantic standards, ballads, and hits of the
    world.

  * Wayne Newton: Music legend Wayne Newton is best known for his phenomenal
    success as a performer in Las Vegas.  As a recording artist in the 1960s
    and 1970s, Newton scored a number of memorable hits including "Danke
    Schoen," "Red Roses for A Blue Lady," and "Daddy Don’t You Walk So
    Fast."  This catalog features tracks from this music legend that have
    never been previously available in digital channels.

  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 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 Todd Rundgren, The Alarm, Dwight Twilley, Richard Clayderman, and Wayne Newton music and video catalogs and making these catalogs available through current and future digital entertainment services) 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 and processing the music and video content; the market demand for digital music and video recordings and potential changes in consumers’ tastes and preferences in music and video; and our dependence on digital entertainment services for the distribution and sale of our music and video content.  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, +1-949-474-4300, len@allencaron.com, or Investors, 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.digitalmusicgroupinc.com/