Digital River/fatfoogoo deal

Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, announced it is now offering game publishers comprehensive in-game support of micro-transactions. The new solution is based on the integration of Digital River’s on-demand e-commerce platform with in-game commerce technology from fatfoogoo AG, a leading international in-game commerce provider. By partnering with fatfoogoo, Digital River can now offer game publishers and developers a single e-commerce connection for managing their online product sales both in-store and in-game.

“The game landscape continues to evolve as more games are being sold and delivered as services rather than products. As a result, traditional publishers today are looking for new ways to transform their game sales from one-time purchases to ongoing revenue models,” said Joel Ronning, Digital River’s CEO. “As a global leader in the e-commerce industry, we intend to be at the forefront in helping publishers make this transition. By working with fatfoogoo and combining its best of breed in-game commerce with our world class e-commerce platform, we can now offer publishers a truly comprehensive and seamless solution for monetising games sales both in-store and in-game.”

The e-commerce solutions from Digital River and fatfoogoo are easily integrated to offer game publishers all the scalability and reliability of a proven in-store platform along with turn-key technology designed to operate a successful in-game marketplace. In addition to providing in-game store functions, such as global payments and inventory management, the solution supports the use of virtual goods and currencies, electronic wallets, peer-to-peer marketplaces and auction capabilities.

“This partnership is another indicator of Digital River’s deep commitment to the game industry,” said Jeff Hemenway, Digital River’s group vice president of games. “In-game commerce in addition to digital downloads and subscriptions are quickly emerging as key strategies for driving game revenue. Our acquisition of THINK Subscriptions last year and our integrated partnership with fatfoogoo now give us best-of-breed solutions to help our gaming clients maximise revenue opportunities.”

“We are excited to partner with Digital River to deliver an industry-leading commerce solution that best services online stores and in-game marketplaces for the gaming community,” said Martin Herdina, fatfoogoo’s CEO. “Our on-demand service models drive global revenue opportunities and operational efficiencies while reducing risk – all value propositions that are increasingly attractive to companies in these uncertain economic times. We intend to leverage these natural synergies between our businesses to the full advantage of our clients.”

As part of the agreement between the companies, Digital River has made an equity investment in fatfoogoo. The investment is part of what the companies plan to be a broader strategic partnership that includes an integrated service offering and a reseller relationship. No additional terms of the agreement were disclosed.

Recently, Digital River also announced a joint marketing agreement with PLAYXPERT, a provider of next-generation, in-game community management tools for PC gamers. Combined with PLAYXPERT’s toolset, Digital River and fatfoogoo can enable publishers to create a branded online experience that integrates in-store and in-game commerce into viral gaming communities. Based on this unique partnership, publishers now will be able to merchandise expansion packs or sequels, run viral marketing programs, use a common wallet across games to support micro-transactions and sell third-party content.

About fatfoogoo

fatfoogoo is a leading in-game commerce solution for monetising online video games, casual games, virtual worlds and social networks. fatfoogoo provides partners, developers and publishers with world-class monetisation solutions. Its comprehensive platform manages all aspects of financial interaction, in-game economies, real world and branded currency, as well as traditional user and subscription management. Publishers can choose white label solutions or individually configured modules. Founded in 2006 by telecommunication veterans, Daniel Petri and Martin Herdina, fatfoogoo is headquartered in Austria and also has offices in the US and the UK. For more information, please visit www.fatfoogoo.com.

About Digital River, Inc.

Digital River, Inc., a leading provider of global e-commerce solutions, builds and manages online businesses for software publishers, consumer technology manufacturers, distributors, online retailers and affiliates. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximise online revenues as well as reduce the costs and risks of running an e-commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.

Founded in 1994, Digital River is headquartered in Minneapolis with offices in major U.S. cities as well as Cologne, Germany; London, England; Shannon, Ireland; Luxembourg, Luxembourg; Stockholm, Sweden; Taipei, Taiwan; Tokyo, Japan; and Shanghai, China. For more details about Digital River, visit the corporate Web site at www.digitalriver.com.

Forward-Looking Statements

In addition to the historical information contained herein, this press release contains forward-looking statements, such as statements regarding the Company’s, and the combined companies’, anticipated future performance, including the ability of the combined companies to integrate e-commerce and in-game commerce offerings; as well as statements containing the words, “believes,” “intends,” “expects” and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: the Company’s variability of operating results; competition in the electronic commerce and in-game commerce markets; the issues associated with integration of the companies’ technologies; the ability of the combined companies to successfully offer expanded capabilities and services in the global online market and the market’s acceptance of such offerings, and other risk factors referenced in the Company’s public filings with the Securities and Exchange Commission.

Digital River is a registered trademark of Digital River, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.

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PRESS CONTACTS

Richard Ratcliffe and Andy Chatterton

Johnson King for Digital River

020 7401 7968

digitalriverteam@johnsonking.co.uk