DMGI Announces Long-Term Distribution Agreements With Independent Labels EsNtion Records, Thick Records, and C.P. Records

SACRAMENTO, Calif., Feb. 21  /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, announced long-term digital distribution agreements with EsNtion Records, a top dance label with a number of current chart hits; Thick Records, a top Chicago-based Punk/Alternative Rock label; and C.P. Records, a Canadian label which features Massari, an up-and-coming Lebanese born R&B/hip-hop artist.  DMGI also provided an update on the number of tracks distributed on behalf of current, active independent labels, noting that that number now stands at more than 100,000, representing approximately 30 percent of the Company's entire music catalog.

"We're excited to add EsNtion, Thick Records, and C.P. Records to our family of labels we represent, as it demonstrates our commitment to acquiring long-term rights to new, contemporary, charting hits that reside on independent labels, not just the 'oldies,'" said Mitchell Koulouris, Chief Executive Officer of DMGI.

Mr. Koulouris added, "With EsNtion, we gained distribution of contemporary chart hits from popular dance artists such as Danielle Bollinger, DJ Russ Harris, and Tricky Bizzniss featuring Trixie Reiss.  Likewise, Thick Records has strong momentum in the punk and Alternative Rock genre, with great artists such as The Tossers and The Arrivals.  Also, Massari has sold more than 100,000 records in Canada, earning him platinum status.  We're happy to have the opportunity to forge these new relationships, and look forward to bringing contemporary music and artists to fans worldwide."

Founded in 2003, Chicago's EsNtion Records scored its first hit with DJ Russ Harris' "Dance With Me."  The company is made up of four labels: EsNtion Silver, Forever Soul, EsNtion Latino, and Four Play Music.  EsNtion has scored regular top ten appearances on the Billboard Club Play Charts with tracks such as Gene Hunt's "Build for the Day/Save the Music," Mr. A.L.I.'s "Jam Session Rounds 1 and 2," and Norti Cotto's "Let It Out" and "I'll Be Your Freak."  The label currently has two tracks climbing the Club Play Charts, including Danielle Bollinger's "You'll Always Have Me" and DJ Russ Harris' "Drums In the Club."  The Detroit-based Bollinger is perhaps best known as being a finalist on the hit television show Star Search.

Founded in 1994, Thick Records has released more than 100 albums from such great punk acts such as At The Drive-In, The Arrivals, Commander Venus, The Blue Meanies, Alkaline Trio, The Tossers, Season To Risk, The Methadones, All, Citizen Fish, and Local H. A mainstay of the Chicago music scene, the label has scored consistent success with its recordings.

Based in Toronto, C.P. Records features R&B/hip-hop artists Massari and Belly.  Massari, born in Beirut, Lebanon and now residing in Canada, has had breakout success with his smooth R&B and hip-hop stylings.  His Middle Eastern roots and unique sound has rocketed him to remarkable success as one of the top English speaking artists in the Middle East.  With physical CD distribution in Canada, Germany, Austria and Switzerland for his self-titled release with Universal Music Group, Massari is poised to garner similar attention and success in the United States.  In addition to acquiring digital rights to Massari's breakthrough recordings and videos, DMGI has also acquired the rights to the single and video, "Pressure" by Middle Eastern rhymer, Belly.  His single, "Pressure," was produced by the Washington D.C. based producer/singer, Ginuwine.  Through his connection with Ginuwine, Belly has toured Canada with Snoop Dogg and Ice Cube.  Both Massari and Belly represent a new breed of international artists that are breaking down cultural barriers while simultaneously climbing the charts.

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 Music 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/.

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 agreements with EsNtion, Thick, and C.P. Records) 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 Store and other online music stores to make the digital albums 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.:              Brian Kennedy, Media Relations
                                   Telephone: [phone]
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  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:  Media Relations, Brian Kennedy, [phone],

, or Investor Relations, Jesse Deal, Account Manager,

, both of Allen & Caron Inc., [phone], for Digital

Music Group, Inc.; or Karen Davis, Chief Financial Officer of Digital Music

Group, Inc., [phone] ext. 2505



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

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