FarStone Wins e-Commerce Award for Best Product Launch

Digital River announces the winners of its 2004 ICE Awards for Internet commerce excellence

MINNEAPOLIS, May 6 — 2004 — Digital River, Inc. (NASDAQ: DRIV), a global leader in e-commerce outsourcing , has announced the winners of its 2004 ICE Awards for Internet Commerce Excellence. The winning companies were honored last night at a ceremony held in conjunction with Digital River’s Network Summit conference in Newport Beach, California. Digital River presented awards in five categories to client companies putting e-commerce best practices to work n creative new ways to drive revenue and efficiencies through their online stores. The winners included: Canon Inc. and Symantec Corp. for Best International E-Commerce Strategy; Tenebril Inc. for Best Network Marketing Campaign; FarStone Technology, Inc. for Best Product Launch; Jasc Software, Inc and ScanSoft, Inc. for Best Promotional Performance; and FinePrint Software, LLC for Best Use of Technology on a Remote Control Platform.

“We are pleased to honor our 2004 ICE Awards winners,” said Joel Ronning, Digital River’s CEO. “Our clients continue to set e-commerce standards of excellence in the way they manage and build their e-commerce operations. They are using e-commerce best practices to take advantage of global expansion opportunities, growing their online businesses through direct and retail channels and attracting international customers with highly localized services. They are e-marketing masters at generating traffic, merchandising products, delivering a superior online experience and cultivating long-term customer relationships. Proof of their success can be found in the new markets and revenue streams they continue to open for their businesses.”

Each of Digital River’s award winners submitted entries, which summarized the e-commerce best-practice campaigns they implemented and the results they generated by marketing and selling products in their online stores:

Best International E-Commerce

Strategy Canon — “By working with Digital River, we were able to cost effectively build and launch an online store that generates incremental revenue from the sale of refurbished and end-of-life merchandise,” said Bernard Winterhalter, manager of European Web sales at Canon Europe. “Digital River’s e-commerce expertise, customer service know-how and solid infrastructure have earned us high marks from our customers while driving more Euros to our bottom line.” Canon is a world leader in imaging products and solutions for the digital home and office.

Symantec — “By leveraging Digital River’s global e-commerce platform, we have been successful in creating a tailored online shopping experience for our global network of customers,” said Terry Sullivan, vice president of Symantec’s Global Online Sales. “Our partnership with Digital River helps us meet the online purchasing preferences of our customers by enabling them to use the currency and language that they are most comfortable with to purchase Symantec solutions.” Symantec is the global leader in information security.

Best Network Marketing Campaign

Tenebril — “We knew our StickyNote product was innovative and unique, and our biggest challenge would be establishing name recognition,” said Lisa Gilbreath, Tenebril’s director of e-marketing. “We solved that challenge when we listed our product in Digital River’s Try-Before-You-Buy (TBYB) network. Since that time, we have gained marketing and distribution access to portals and content publishing sites as well as the opportunity to establish third-party relationships. As a result, we have significantly increased exposure for our product. Our reach per million users has increased 100 percent and our online sales have jumped 56 percent.” Tenebril is a growing software company specializing in comprehensive Internet privacy, and data backup and recovery products.

Best Product Launch

FarStone Technology — “ With the help of Digital River’s e-marketing specialists, we created an online promotional campaign to launch four of our products simultaneously,” said Dave Moser, FarStone’s marketing and e-commerce manager. “We used best practice e-marketing tactics to support e-mail blasts, search engine advertising and discount offers in Digital River’s online retail channel. The end results far exceeded our expectations. Our sales for the first month of the campaign were 218 percent higher than the same quarter the previous year, 139 percent higher than the previous month and 30 higher than our all-time record! In just five months, we generated more sales than we did during the previous 13 months.” FarStone Technology is a software company specializing in security and CD/DVD solutions.

Best Promotional Performance

Jasc Software — “Our goal was clear — we wanted to increase direct sales. With the help of Digital River’s e-commerce experts, we re-architected our approach to e-commerce and developed an online promotional strategy that leverages the best of Digital River’s e-marketing tool set,” said Dixon Gould, Jasc’s director of technical services. “We far surpassed our initial revenue expectations and experienced significant growth in average order value and our demand close ratio.” Jasc Software, Inc. is recognized as a global leader of digital photography and imaging software, providing the Paint Shop family of products that includes Paint Shop Pro and Paint Shop Photo Album.

ScanSoft — “We are always looking for new and improved ways to increase online revenue while reducing costs,” said Ed McGuiggan, ScanSoft’s director of programs marketing. “Last fall, we implemented Digital River’s new search engine optimization program to further expand our customer acquisition capabilities. As a result of this program, we were able to increase our online conversion rate on our e-commerce site from 1.8 percent to 2.3 percent, while dropping advertising costs as a percent of revenue.” ScanSoft is a market-leading supplier of speech and imaging solutions.

Best Use of Technology on a Remote Control Platform

FinePrint Software — “By using Digital River’s DigiBuy platform, we have been able to significantly grow our business,” said Jonathan Weiner of FinePrint Software. “Because we have only two people in our company, we rely on DigiBuy for all of our order and credit card processing, reliable electronic software delivery and superior customer service. The DigiBuy service has become increasingly sophisticated and allows us to not only alter our pricing and delivery options in real-time, but also focus on creating great products for our customers, which is the key to our success. The DigiBuy platform is a major component of our business strategy and is very much a part of our team.” FinePrint Software is the publisher of pdfFactory Pro.

About Digital River

Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for more than 35,000 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.

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.

About FarStone

Founded in 1993, FarStone Technology develops data backup, hard disk imaging, and CD emulation software. FarStone is an ISO 9001 certified software publisher holding multiple technology patents. Headquartered in Irvine, CA, the company licenses its software to corporations, small businesses, educational institutions and consumers worldwide. FarStone’s technology partners include Intel, NEC, Phoenix Technologies and Toshiba.