SACRAMENTO, Calif., July 6 /PRNewswire-FirstCall/ -- Digital Music Group, Inc. , a content owner and global leader in the digital distribution of independently owned music and video catalogs, announced today an exclusive digital distribution agreement with wrestling legend and star of the hit series on VH1 Hogan Knows Best, Hulk Hogan. Under the terms of the agreement, DMGI will distribute newly-created audio and video ringers from the wrestling superstar to mobile and digital distribution channels worldwide.

"Hulk Hogan is wrestling's biggest superstar and a true American icon and we're very happy to be working with him to create new audio and video ringers," said Mitchell Koulouris, Chief Executive Officer of DMGI. "Hulk is another example of a top-tier artist choosing DMGI as their digital partner. We're very excited to be partnering with Hulk to bring his content to his legions of fans around the world."

"I'm thrilled to be working with DMGI as my new digital distribution partner," said Hogan. "My fans have been asking me to make more of my content available via digital and mobile channels and DMGI was the clear choice for me. They're a great company with an excellent video distribution network."

DMGI will be releasing these exclusive, never-before-seen Hulk Hogan audio and video ringers through its extensive video and mobile distribution channel. The first of these exclusive Hulk Hogan ringers will be released in fall 2007.

Entering its fourth season on July 22, Hogan Knows Best is one of the top-rated shows on VH1. One of the greatest, most popular, and charismatic wrestlers of all time, Hogan virtually single-handedly took the world of professional wrestling from cult following into the mainstream of American entertainment. Hogan made his pro debut in 1978 and later in the early 1980's was cast as Thunderlips in the hit movie Rocky III, which propelled him into the international spotlight. He then entered the World Wrestling Federation (WWF) in 1983. Hogan won the WWF title numerous times, and was credited with dealing Andre the Giant his first loss in pro wrestling. After leaving the WWF he made his comeback with World Championship Wrestling (WCW), the WWF's bitter rival.

About DMGI

Founded in 2005, Digital Music Group, Inc. 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, Joost, AOL's in2tv, Napster, Wal-Mart Music, Helio, 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 of audio and video ringers from Hulk Hogan 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 video; 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 Foeller Communications: Kurt Foeller, Telephone: 415-578-3251 e-mail: dmgi@foellercom.com Investor Relations Contact Digital Music Group, Inc.: Karen Davis, Chief Financial Officer, Telephone: (916) 239-6010 x2505 Allen & Caron Inc.: Jesse Deal, Account Manager, Telephone: (212) 691-8087, e-mail: Jesse@allencaron.com

CONTACT: Kurt Foeller of Foeller Communications, +1-415-578-3251,
dmgi@foellercom.com, for Digital Music Group, Inc.; or investor relations,
Karen Davis, Chief Financial Officer of Digital Music Group, Inc.,
+1-916-239-6010, ext. 2505; or Jesse Deal, Account Manager of Allen & Caron
Inc., +1-212-691-8087, Jesse@allencaron.com, for Digital Music Group, Inc.

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