DMGI Announces Long-Term Digital Distribution Agreement With BKN International

Contemporary Animated Kids' TV and Film Content Expands Company's Video Catalog 


SACRAMENTO, Calif., March 15  /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 a long-term digital distribution agreement with BKN International AG (Deutsche Bourse: BKQ GY and AIM: BKN LN), a global animation company engaged in the distribution and marketing of animated children's television programs and feature-length films.  Under the agreement, DMGI will deliver BKN's current and upcoming television and film series to digital video distribution channels throughout North America.  The video catalogs will also be added to the DMGI Kids channel on the DMGI Network, alongside other contemporary and classic content for kids, including "The Gumby Show," "Gumby Adventures," "The Shari Show," "Clutch Cargo," and "Courageous Cat and Minute Mouse."

"Great children's programming finds new fans with each generation and BKN is one of the premier developers of animated children's television, like 'Legend of the Dragon,' currently airing on Jetix on Toon Disney.  The children's video market represents a significant opportunity for DMGI because the youngest generation is as likely to watch videos from a DVD player, computer, hand-held device, or the back seat of the family SUV as they are to watch from a television set," said Mitchell Koulouris, Chief Executive Officer of DMGI.  "This agreement also underscores our continued effort to acquire the digital rights or digital distribution rights to high-quality content that has an established audience or fan base upon which we can build.  We look forward to working with BKN International to deliver its content to more people in more ways."

"We're very pleased to have formed this relationship with DMGI.  Our agreement establishes a solid distribution network for our catalog immediately, and having an organization like DMGI behind our catalog, with its expertise in handling all digital rights within our key North American market, is very important to us," said Allen Bohbot, Chief Executive Officer of BKN International AG.  "Not only does DMGI have the expansive digital reach that we wanted for our catalog, they also have good working relationships with retail outlets, including the iTunes Store, Google Video, In2TV, WalMart.com, and more."

The BKN Kids library is one of the largest in the children's animation category.  With popular shows such as "Legend of the Dragon," "Dork Hunters from Outer Space," and "Zorro: Generation Z" and films such as "Jungle Book: Rikki-Tikki-Tavi to the Rescue," "Robin Hood: Quest for the King," and "Kong: Return to the Jungle," BKN is a recognized leader in the children's animation category.

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, TV, film and video catalogs.  DMGI acquires the digital rights to media catalogs and digitally encodes them into multiple formats for distribution to online music, mobile, and video stores.  Our retailers include: the iTunes Store, YouTube, Google Video, RealNetworks, Napster, Wal-Mart Music, Yahoo! Music, InfoSpace, Moderati, Zingy, 9Squared, and many others.  For more information, please visit http://www.dmgi.com/.

About BKN

BKN International AG is a global animation company engaged in the distribution and marketing of animated children's television programmes and the marketing of related consumer products (licensing and merchandising) in all forms.  BKN has worked on numerous successful animation projects.  The Company is currently listed on the Deutsche Bourse and AIM and it operates all over the world.  BKN has successfully negotiated distribution deals in over 95 countries and territories in the children's programming market.

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 BKN International AG video catalog through video download and mobile distribution channels) 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 comedy; and our dependence on online stores and mobile services for the distribution and sale of our digital video recordings.  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: [phone]
                              e-mail: 

  Investor Relations Contact
  Digital Music Group, Inc.:  Karen Davis, Chief Financial Officer,
                              Telephone: [phone] x2505
  Allen & Caron Inc.:         Jesse Deal, Account Manager
                              Telephone: [phone]
                              e-mail: 

DATASOURCE: Digital Music Group, Inc.



CONTACT:  Investors, Jesse Deal, Account Manager, [phone],

, or Media, Len Hall, VP Media Relations, [phone],

, both of Allen & Caron Inc., for Digital Music Group, Inc.;

or Investor Relations, Karen Davis, Chief Financial Officer of Digital Music

Group, Inc., [phone] ext. 2505



Web site:  http://www.dmgi.com/ 

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