DMGI Digital Music (MM)

Deal Brings Biograph and Black Top Catalogs to Digital Music Stores Worldwide SACRAMENTO, Calif., Oct. 3 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a content owner and leading distributor of digital music and video recordings, today announced an exclusive long-term digital distribution agreement for two music catalogs owned by Shout! Factory. Under the terms of the agreement, DMGI will distribute two catalogs from the Shout! Factory archives, Biograph and Black Top, to the worldwide digital music marketplace. The catalogs will collectively add approximately 10,000 new tracks to the total number of recordings being distributed by DMGI. "We're pleased to announce this deal with Shout! Factory," said Mitchell Koulouris, Chief Executive Officer of DMGI. "Shout! Factory is one of the pre-eminent music labels in the industry and fits perfectly into the DMGI business model. Its Biograph and Black Top catalogs are excellent and we're excited to bring these important catalogs to the digital music market." "Shout! Factory is excited to be working with DMGI to make these classic catalogs available for download," said Bob Emmer, COO of Shout! Factory. "DMGI's superb sales channel was a major factor in choosing them for our coveted catalogs. DMGI shares our vision of re-issuing and marketing key audio and video titles, and we are thrilled to be able to bring these catalogs to music lovers everywhere." Mr. Emmer was a longtime executive at Rhino Records, the pioneering re-issue arm of Warner Music Group. He left Rhino along with Rhino's founder, Richard Foos, and Foos' brother Garson, to co-found Shout! Factory in 2001, a label committed to producing, uncovering and revitalizing the very best of pop culture. Biograph Records was established in 1967 to issue historic American genres: recordings of early jazz, ragtime and blues, some acquired from the Library of Congress catalog. Biograph itself includes some 42 albums of material, including such names as James P. Johnson, Skip James, Leadbelly Ledbetter, Benny Goodman, Fats Waller, Jelly Roll Morton, Jerome Kern and more, along with such contemporary musicians as Dexter Gordon, Randy Weston and Stan Getz. Also part of Biograph's catalog are a number of albums on the Center label by various jazz artists, most of them listed as "New Orleans Dance Hall Series," along with 11 albums on the Melodeon label that span such Americana genres as bluegrass (Stanley Brothers), blues (Skip James, Blind Willie McTell), Cajun (Herman Fontenot) and early jazz (Jabbo Smith). Black Top Records is arguably the finest blues label of the late 1980s and 1990s. The New Orleans-based label's artist roster consisted of such veterans as Earl King, Snooks Eaglin, Hubert Sumlin, Johnny Copeland, Freddie King and James "Thunderbird" Davis, along with such ace blues-revival acts as Ronnie Earl, Anson Funderburgh, Rod Piazza, James Harman and Mike Morgan, and rock acts Bill Kirchen and Lee Rocker. Much of Black Top's panache came from label co-owner and record producer Hammond Scott, whose ability to coax great performances out of his label's musicians gave the label's recordings an edge over the output of its contemporaries. "This deal with Shout! Factory underscores DMGI's commitment to bring high-quality catalogs to consumers everywhere via digital music and video channels," added Mr. Koulouris. "We also intend to release portions of these catalogs through our newly established ringtone, mastertone, and over-the-air download sales channels as well." About Digital Music Group, Inc. Founded in 2005, Digital Music Group, Inc. (NASDAQ:DMGI) is focused on helping consumers worldwide to experience more music, in more ways. Digital Music Group acquires the digital rights to music and video recordings and processes these into digital format for distribution to online music stores, online video stores, and mobile channel partners including the iTunes Music Store, MSN Music, Google Video, RealNetworks, Napster, Wal-Mart Music, Yahoo! Music, Verizon Wireless, Virgin Mobile, Moderati, and others, where they are available for purchase by consumers via downloading. For more information, please visit http://www.dmgi.com/. About Shout! Factory Shout! Factory, based in Los Angeles, is a diversified entertainment company devoted to producing, uncovering and revitalizing the very best of pop culture. Founders Richard Foos, Bob Emmer and Garson Foos have spent their careers sharing their music, television and film faves with discerning consumers the world over. Shout! Factory's DVD offerings serve up classic, contemporary and cult TV series, riveting sports programs, live music, animation and documentaries in lavish packages crammed with extras. The company's audio catalogue boasts Grammy(R)-nominated boxed sets, new releases from storied artists, lovingly assembled album reissues and indispensable "best of" compilations. These riches are the result of a creative acquisitions mandate that has established the company as a hotbed of cultural preservation and commercial reinvention. For more on Shout! Factory, visit http://www.shoutfactory.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 agreement with Shout! Factory and making the Shout! Factory catalogs available for digital distribution) 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 Music Store and other online music stores and mobile channel partners to make the digital music and videos 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 (949) 474-4300 Shout! Factory: Jason Allen, Sr. Director Media Relations (310) 979-5602 Investor Relations Contact Digital Music Group, Inc.: Karen Davis, Chief Financial Officer (916) 239-6010 x2505 Allen & Caron Inc.: Jesse Deal, Account Manager, (212) 691-8087 DATASOURCE: Digital Music Group, Inc. CONTACT: Press, Len Hall, VP Media Relations of Allen & Caron Inc., +1-949-474-4300, , for Digital Music Group, Inc.; or Jason Allen, Sr. Director Media Relations of Shout! Factory, +1-310-979-5602, ; or Investor Relations, Karen Davis, Chief Financial Officer of Digital Music Group, Inc., +1-916-239-6010, ext. 2505; or Jesse Deal, Account Manager of Allen & Caron Inc., +1-212-691-8087, , for Digital Music Group, Inc. Web site: http://www.dmgi.com/ http://www.shoutfactory.com/

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