Pinnacle Systems Partners with Digital River to Enhance its E-Commerce Services; Leverages Unique in-Application Purchasing Technology and Launches New Online Stores

Business Wire, June 22, 2004

MINNEAPOLIS -- Digital River, Inc. (Nasdaq:DRIV), a global leader in e-commerce outsourcing, today announced that it signed an agreement with Pinnacle Systems, a leader in digital media creation, storage, and play-back solutions for use at home, in the studio and on the air. Based on the agreement, Digital River is providing a range of services to support Pinnacle's e-commerce expansion efforts, including the launch of new online stores for Pinnacle's U.S. and Latin American markets and the introduction of in-application purchasing privileges for consumers of Pinnacle Studio(TM), the company's flagship software title.

"Digital River's comprehensive suite of e-commerce services is built to help companies, such as Pinnacle, address their e-commerce requirements on many fronts," said Joel Ronning, Digital River's CEO. "From providing access to a world class e-commerce platform, to guiding companies through the complexities of building a global online business and managing the details of best practice e-marketing campaigns, we know how to run a profitable e-commerce operation. Drawing on this infrastructure and over a decade of experience, we can offer our clients a solid economic proposition and provide their customers a superior online experience."

To support the launch of the latest version of Pinnacle Studio, a popular home movie-making and editing software package, Digital River is providing unique, leading-edge technology that allows Studio customers to purchase, license and unlock value-added content stored on the Studio application. The in-application purchase gives customers immediate access to bundled packages of sound effects, scene transitions and titles that can be used in creating and editing personal videos and DVDs.

To further promote the online marketing and sale of Pinnacle's products, Digital River launched and is also hosting and managing new e-commerce sites targeted at Pinnacle's domestic and Latin American customers. One of the stores was designed for Steinberg, the Audio Group of Pinnacle Systems, a leading innovator of computer recording technology. The Steinberg site features well-known, brand-name professional software products for musicians and producers in the music, film, post production and multimedia industries. Steinberg products, including Nuendo and Cubase, are used by Grammy(R) and Oscar(R) award-winning composers, engineers and producers. In addition to providing order management and product fulfillment for Pinnacle's online stores, Digital River also is handling customer service, digital and physical fulfillment, e-marketing and fraud prevention screening.

"We outsourced our online services to Digital River because of the company's leadership in the e-commerce marketplace," said Jon D'Angelica, director of online sales for Pinnacle Systems. "We plan to leverage Digital River's extensive download capabilities, its online sales network and retail channel, and best practice e-marketing services to grow our global customer base."

About Pinnacle Systems, Inc.

Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, at Work and on the Air. Pinnacle Systems' award-winning digital media solutions are in use around the world for broadcast, video editing, DVD and CDR authoring and on the Internet. A recognized industry leader, the company has received nine prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines. Pinnacle Systems may be reached at 650-526-1600 or at www.pinnaclesys.com.

About Digital River, Inc.

Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for more than 40,000 software publishers, manufacturers, distributors and online retailers. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize 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 prevention, site merchandising, advanced reporting and analytics, product fulfillment, e-marketing and multi-lingual customer service.

Founded in 1994, Digital River is headquartered in Minneapolis with offices in Chicago, Mountain View, California, London, and Cologne, Germany. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.

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.