MINNEAPOLIS, Jan. 29, 2009 - Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, reports its fourth quarter financial results.

Fourth Quarter and Full Year Ended Dec. 31, 2008
GAAP Results
Fourth quarter revenue totaled $95.9 million, compared to $96.9 million during the same period in 2007. For the full year 2008, Digital River reported revenue of $394.2 million, an increase of approximately 13 percent from revenue of $349.3 million reported in 2007.

Fourth quarter GAAP net income was $16.5 million, or $0.41 per diluted share. This compared to GAAP net income of $20.3 million, or $0.46 per diluted share, in the fourth quarter of 2007. For the full year 2008, GAAP net income was $63.6 million, or $1.55 per diluted share. This compared to GAAP net income of $70.8 million, or $1.58 per diluted share, during the same period in 2007.

Non-GAAP Results
Fourth quarter non-GAAP net income was $19.8 million, or $0.48 per diluted share. This compared to non-GAAP net income of $25.3 million, or $0.56 per diluted share, in the fourth quarter of 2007. Non-GAAP net income for the full year 2008 was $78.3 million, or $1.86 per diluted share. This compared to non-GAAP net income of $90.8 million, or $1.98 per diluted share in 2007.

Non-GAAP net income is computed by starting with GAAP pre-tax income as reported on the Company's statement of income, then adding back amortization of acquisition-related intangibles and stock-based compensation expense, to calculate non-GAAP pre-tax income. This amount is then taxed at 27 percent to arrive at non-GAAP net income. This amount is then divided by fully-diluted GAAP shares outstanding, which includes shares underlying the Company's convertible senior notes, to derive non-GAAP diluted net income per share. To provide further clarity, a detailed reconciliation on the comparability of the GAAP and non-GAAP data has been provided in table form following the financial statements accompanying this release.

"Our fourth quarter and full year results were in line with our expectations," said Joel Ronning, Digital River's CEO. "We expect the progress we made developing new markets to carry into 2009, providing growth opportunities outside the software business. While the uncertainty in the economy makes the near term difficult to predict, we remain confident in our strategy, pipeline and value proposition - key elements in driving our long-term growth."

2009 Guidance
Forward-looking guidance for the quarter ending March 31, 2009, is as follows:
First Quarter

Digital River will hold a conference call today at 4:45 p.m. EST to discuss fourth quarter and full year financial results. A live webcast of the conference call can be accessed from http://www.digitalriver.com/2008/q4earnings/. Alternatively, a live broadcast of the call may be heard by using conference ID # 80387739 and dialing (888) 218-6314 inside the United States or Canada, or by calling +1 (706) 634-9714 from international locations. A webcast replay of the call will be archived on Digital River's corporate Web site.

Click here to access the financial tables.

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 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 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 or call 952-253-1234.

Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the Company's anticipated future growth, including future financial performance, as well as statements containing the words "anticipates," "believes," "plans," "will," or "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 those expressed or implied by such forward-looking statements. Such factors include, among others: the Company's operating history and variability of operating results; competition in the e-commerce market; challenges associated with international expansion; the variability of foreign exchange rates; our ability to successfully manage our business while undertaking significant internal investments; our ability to achieve favorable tax rates in our international operations; and other risk factors referenced in the Company's public filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended Dec. 31, 2007. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Digital River's most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time-to-time.

Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.