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DMGI Announces New Video Catalog Acquisitions

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 that it has completed a number of long-term distribution agreements with television, film, and video catalog owners representing nearly 200 hours and 400 episodes of video content. These acquisitions will be marketed as part of the "DMGI Network" content channels, joining the approximately 4,000 hours of video content previously announced in November 2006.

"We're very excited about the breadth and quality of the television, film, and video catalogs we are announcing today," said Mitchell Koulouris, Chief Executive Officer of DMGI. "We built a strong foundation last November when we first launched our video initiative and although digital distribution of video is still evolving, the market reception so far has been excellent. The catalogs we are announcing today further extend our plans to deliver high-quality properties to the maturing digital video market."

"Today's announcement underscores our commitment to expanding the DMGI Network to include quality content and brands for audiences of all ages and demographics," said Mr. Koulouris. "In addition to content acquisitions, we are focused on forging expanded or new relationships with our digital retailers to include video distribution to a wide variety of devices. This is all part of our strategy to position DMGI as a leading distributor of digital entertainment. We look forward to working with content owners of all types of entertainment properties to help them access the digital media market."

For more information on the catalogs and content announced today, please visit http://www.dmgi.com/video/. Also, as more fully discussed in DMGI's most recent filing on Form 10-Q for the quarter ended September 30, 2006, the Company does not presently expect to achieve any meaningful revenue from video distribution until the second half of 2007, and it is possible that DMGI could never achieve meaningful revenue from investments in video distribution.

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, 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

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