Digital River Launches E-Commerce Operations for Altec Lansing

MINNEAPOLIS, February 9, 2004-- Digital River, Inc. (NASDAQ: DRIV ), a global leader in e-commerce outsourcing, today announced that it signed an agreement with Altec Lansing ® Technologies, Inc., the leader in the design and manufacture of Powered Audio ™ products. Based on the agreement, Digital River built and launched Altec Lansing's e-commerce site, located at www.alteclansing.com, to support the online sales of its line of powered audio systems and accessories. Digital River not only hosts the site, but also provides order management, 24x7 customer service, e-marketing and fraud prevention screening. Altec Lansing's online store offers its customers a convenient 24x7 channel for making purchases.

“We are pleased to add Altec Lansing, a market leader in powered audio products, to our growing list of clients in the consumer electronics market,” said Joel Ronning, Digital River's CEO . “Our loyal client base includes thousands of software publishers whose customers have demonstrated a high propensity to purchase not only software, but also computer peripheral products, including pointing devices, speakers, tote bags, headsets and other similar items. By providing Altec Lansing access to this demographic through joint marketing programs with publishers in our client network, we are in a unique position to help the company increase its incremental sales and expand its customer base. We are excited to add Altec Lansing to the mix of our clients who have found success leveraging the power of our network.”

Visitors to Altec Lansing's site will now find shopping and purchasing features more prominently displayed on its home page, adding to the convenience of a 24X7 shopping destination. The Altec Lansing online store offers a full range of audio products, including the new inMotion™ portable audio system designed for the iPod, the FX6021 with InConcert™ technology and the MX5021 with THX certification.

“We decided to outsource our e-commerce operations to Digital River because of the company's ability to grow its clients' online businesses,” said Bob Garthwaite, senior vice president of sales and marketing for Altec Lansing. “In the competitive world of online selling, it is important to attract and retain customers and provide them with a compelling reason to purchase products. We're excited about working with Digital River as we prepare to launch an entire new line of powered audio products. We'll be working with Digital River on a variety of e-marketing strategies targeted specifically at the plug-and-play audio demographic.”

About Altec Lansing Technologies, Inc.
Altec Lansing Technologies, Inc., has a rich legacy of blending art and science to stir the soul with high quality consumer and professional speaker systems. The market leader in Powered Audio TM Systems, Altec Lansing designs, manufactures and markets a wide range of computer and home entertainment sound systems and a line of headsets and headphones. The company's Professional division, re-launched in 2002, builds on the storied Altec Lansing name among sound system specifiers, contractors and installers in the fixed installation market. Headquartered in Milford, Pa., United States and privately held, Altec Lansing has offices in Austin, Texas, Oklahoma City, Okla., Luxembourg and Hong Kong. In addition, Altec Lansing has an ISO 9002 and SA8000 certified manufacturing facility in The People's Republic of China. The company employs about 1,500 people worldwide.

About Digital River
Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for nearly 34,000 companies worldwide. Its e-commerce solution and infrastructure are designed to help companies of all sizes maximize online revenues as well as cut the costs and reduce the risks associated with running an e-commerce operation. The Digital River ® international e-commerce suite includes site development and hosting, order management, fraud prevention, site merchandising, reporting and analytics, product fulfillment, e-marketing and multi-lingual customer service. Digital River's clients include 3M, ACT!, Autodesk, H&R Block, Motorola, Novell, Staples.com and Symantec.

Founded in 1994, Digital River is headquartered in Minneapolis with offices throughout the United States and in Europe. 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 trademarks and registered trademarks are trademarks of their respective owners.