Digital River Sets Go-to-Market Strategy for its European Operations

Digital River, Inc., a provider in e-commerce outsourcing, today announced its plans to further align its European operations with a single unified go-to-market strategy.

"In 2004, Digital River greatly expanded its European presence with the acquisition of element 5," said Joel Ronning, Digital River's CEO. "We have been very satisfied with our global integration efforts and have achieved our strategic and financial objectives."

As result of this initiative, Digital River's U.K. and German-based offices now will provide its clients and prospects with the company's full complement of technology, products, services and marketing programs. In addition, these offices will offer increased local operational support to help clients accelerate entry and revenue growth within Europe.

In connection with this initiative and the achievement of the integration milestones and obligations under the element 5 acquisition agreement announced on April 19, 2004, Gerrit Schumann and two other selling shareholder managers have decided to leave the company to pursue business interests outside of the outsourced e-commerce industry.

These managers will remain on board at element 5 to transition their duties during the next sixty days. Mr. Schumann also has resigned from Digital River's Board of Directors.

"We are proud of the development of element 5 over the past years, but this is the right time to move on," said Schumann on behalf of the element 5 executives. "We are very confident in the capable team and leadership that are in place now."

Digital River has appointed Don Peterson, the company's current vice president of client management, to lead this European initiative. Mr. Peterson's experience encompasses more than 20 years of industry experience, including executive positions with large market leaders, such as IBM and Accenture.

He also has successfully founded and developed two private firms, and led their integration into acquiring companies. To assist Mr. Peterson in meeting future growth objectives, several key element 5 managers have been promoted to senior positions.