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Music Industry 23 May, 2006

Digital Music Group Announces Long-Term Distribution Agreement With Pipeline Music, Inc.

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SACRAMENTO, Calif. (By Len Hall/ VP Media Relations/ Digital Music Group) - Digital Music Group, Inc. (Nasdaq: DMGI), a content owner and distributor of digital music recordings focused on past hits, out-of-print, back catalog, and independent label recordings, today announced that it has entered into a long-term distribution agreement with Pipeline Music, Inc., a California-based classical music label, whose catalog includes over 2,000 music recordings from Russian and other former Soviet-bloc performers. Under the terms of the distribution agreement, DMGI will distribute Pipeline Music's catalog to online music stores worldwide on an exclusive basis for a five-year period. This is the first time Pipeline Music's catalog will be available in the digital music marketplace.

Expanding Pipeline Music's Audience
The Pipeline Music catalog will be integrated into the Digital Music Group distribution network and be delivered to online music stores worldwide. "We're excited to be distributing the Pipeline Music catalog," said Mitchell Koulouris, Chief Executive Officer of Digital Music Group. "Classical music is one of the fastest-growing genres in the digital music marketplace and we're pleased Pipeline Music chose us to be their distribution partner." Additionally, DMGI intends to release portions of the Pipeline Music catalog through ringtone, mastertone, and over-the-air download sales channels as they are added as part of the Digital Music Group distribution network.

About Digital Music Group, Inc.
Founded in 2005, Digital Music Group, Inc. (Nasdaq: DMGI) is focused on helping consumers worldwide to experience more music, in more ways. Digital Music Group acquires the digital rights to music recordings and processes these recordings into digital format for distribution to online music stores such as the iTunes Music Store, MSN Music, RealNetworks, Napster, Wal-Mart Music and Yahoo! Music, where they are available for purchase by consumers via downloading. For more information, please visit https://www.digitalmusicgroupinc.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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