DMGI Announces New Kids Video Content Acquisitions

Apr 12th 2007

DMGI Announces New Kids Video Content Acquisitions

Bozo the Clown, Howdy Doody, and Batfink Highlight Video Catalog Expansion

SACRAMENTO, Calif., April 12 /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 expansion of its DMGI Kids catalog with the acquisition of a number of classic children's shows and animated features, including the "Bozo the Clown Show," the "Howdy Doody Show," "Batfink," "Milton the Monster," and "Gigantor." The newly acquired video catalogs total more than 400 episodes and 150 hours of programming.

"With today's announcement, DMGI continues its commitment to the children's genre by adding top quality classic branded content," said Mitchell Koulouris, Chief Executive Officer of DMGI. "Today's announcement further solidifies DMGI's leadership position in digital video content." DMGI announced the acquisition of the following catalogs:

* Bozo the Clown: Perhaps one of the most recognizable brands in the history of children's programming, the "Bozo the Clown Show" was one of the top-rated children shows in the 1950s and 1960s. This catalog features more than 100 episodes of this classic.

* Howdy Doody: One of the most popular and fun-filled kids shows of its era, Howdy Doody made his mark in 1947 and earned legions of kids fans all over the country until the series ended in 1960. This catalog also includes more than 100 "lost episodes" that were shot in the 1970s and stored in a vault for 25 years, only to be recently rediscovered.

* Batfink: A popular animated children's series of the 1960s, Batfink first aired in September 1967. Featuring his super-sonic sonar radar and metallic wings, Batfink would use his power to capture the "bad guys," including his main villain, Hugo A. Go-Go.

* Milton The Monster: Originally airing from 1965 to 1968, "Milton The Monster" capitalized on the popularity of then-popular TV sitcoms "The Addams Family" and "The Munsters." Starring Frankenstein-type Milton with his friends Heebie, Jeebie, and Abercrombie the Zombie, Milton the Monster was one of the most popular animated shows of the 1960s.

* Gigantor: The English language version of the Japanese animated show, "Tetsujin-28-go, Gigantor" was one of the first anime-style cartoons introduced to American audiences. Created in 1963 and the first "giant robot" series of its kind, Gigantor was an immediate hit with young audiences and was the predecessor to similar themed animated shows of the 1980s and 1990s.

The catalogs announced today add to DMGI's ever growing Kids Channel content that already features "The Adventures of Gumby," "Gumby Adventures," "Legend of the Dragon," "Clutch Cargo," "Courageous Cat," "Starla and the Jewel Riders," "The Shari Show," and "Dork Hunters from Outer Space" among others. The DMGI Kids Channel now features more than 1,400 episodes of high-quality children's content.

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 of the "Bozo the Clown Show," the "Howdy Doody Show," "Batfink," "Milton the Monster," and "Gigantor" video content through 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 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 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.


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