Demand Media, Inc. Announces Exercise of Option to Purchase Additional Shares in its Initial Public Offering

Demand Media, Inc. (“Demand Media”) (NYSE: DMD) announced today that, in connection with Demand Media’s initial public offering, the underwriters have exercised in full their option to purchase an additional 675,000 shares from Demand Media and 660,000 shares from the selling stockholders at the initial public offering price of $17.00 per share. The full exercise of the option to purchase additional shares brings the total number of shares of common stock to be sold in the initial public offering to 10,235,000 shares. Demand Media will not receive any of the proceeds from the sale of shares of common stock by the selling stockholders.

Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated are acting as joint book-running managers for this offering. UBS Securities LLC, Allen & Company LLC, Jefferies & Company, Inc., Stifel, Nicolaus & Company, Incorporated, RBC Capital Markets Corporation, Pacific Crest Securities LLC, Raine Securities and JMP Securities LLC are acting as co-managers for this offering. This offering will be made only by means of a written prospectus forming part of the effective registration statement relating to these securities. Copies of the prospectus may be obtained by contacting Goldman, Sachs & Co., 200 West Street, New York, NY 10282, Attention: Prospectus Department (Tel: [phone]; Fax: [phone]; e-mail: [e-mail]) or Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036, Attention: Prospectus Department (Tel: [phone]; e-mail: [e-mail]).

A registration statement on Form S-1 relating to the initial public offering of shares of Demand Media’s common stock was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on January 25, 2011. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.