DMGI Announces YouTube Deal

SACRAMENTO, February 12: Digital Music Group, Inc. (DMGI),
which specializes in the digital distribution of independently owned music,
television, film and video catalogs, has announced a revenue-sharing content
agreement with YouTube.

The deal makes parts of DMGI's video catalog available for
legal use by YouTube users. Additionally, DMGI has agreed to allow certain
music, where DMGI owns or controls the music publishing rights, to be used in
user-generated videos uploaded to YouTube.

DMGI currently owns or controls the digital distribution
rights to more than 4,000 hours of video content, including classic television
episodes of Gumby, I Spy, My Favorite Martian and Peter Gunn. DMGI’s content will be available for free and the company will take a
cut of advertising revenues.