DMGI Digital Music (MM)

SACRAMENTO, Calif., May 8 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. (NASDAQ:DMGI), a content owner and global leader in the digital distribution of independently owned music, television, film, and video catalogs, today announced it will begin offering its television and film content through Joost(TM) (http://www.joost.com/), the world's first broadcast-quality Internet television service. "We are very pleased to be working with Joost," said Mitchell Koulouris, Chief Executive Officer of DMGI. "Both Joost and DMGI share a passion for bringing top quality media to consumers worldwide, and we look forward to creating a successful partnership." DMGI currently controls the digital distribution rights to more than 4,000 hours of video content, ranging from classic television favorites such as Gumby, I Spy, My Favorite Martian, and The Mr. Bill Show to comedy from Sam Kinison, Andrew Dice Clay, and Jamie Foxx, to contemporary content from superstar illusionist Criss Angel. Founded by Janus Friis and Niklas Zennstrom, Joost combines the best of TV and the best of the Internet by offering viewers a unique, TV-like experience enhanced with the choice, control and flexibility of Web 2.0. Joost is the first online, global TV distribution platform, bringing together advertisers, content owners and viewers in an interactive, community-driven environment. Joost is the latest in a growing list of digital video services added to the DMGI distribution network that includes Amazon Unbox, YouTube, the iTunes Store, Google Video, and In2TV, among others. DMGI is planning to make its video catalog available to Joost starting in the summer of 2007. For more information on the DMGI video catalog, please visit http://www.dmgi.com/video/. 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 DMGI's distribution of videos through digital entertainment services, including Joost) 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. 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@allencaroncom 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: DATASOURCE: Digital Music Group, Inc. CONTACT: Press, Len Hall, VP Media Relations, of Allen & Caron, Inc., +1-949-474-4300, Len@allencaroncom, for Digital Music Group, Inc.; or Investor Relations, Karen Davis, Chief Financial Officer of Digital Music Group, Inc., +1-916-239-6010 x2505; or Jesse Deal, Account Manager, of Allen & Caron Inc., +1-212-691-8087, , for Digital Music Group, Inc. Web site: http://www.joost.com/ Web site: http://www.dmgi.com/video Web site: http://www.dmgi.com/

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