Digital River launches new online subscription service with acquisition of Infocon America.

Digital River Inc. (NASDAQ; DRIV), which describes itself as "a global leader in e-commerce outsourcing," recently acquired Infocon America Corp., a leading provider of web solutions for publishers of newsletters, journals, magazines, research reports, directories, and buyers guides.

The acquisition ushers Digital River into the e-subscription service. This subscription management solution facilitates the online sale and renewal of electronic and print subscriptionbased content and products. It also automates access, delivery and fulfillment of electronic subscriptions.

Joel Ronning Digital River's CEO, said, "As the marketplace for software and digital products grows more competitive everyday, publishers are looking for more efficient and cost-effective channels for managing and expanding their businesses.

"With demostrated expertise in building global e-commerce operations, merchandising sites and managing huge volumes of data, Digital River can help publishers develop long-term growth strategies and create a rich environment to drive sales."

Digital River's new E-Subscriptions service will be supported in part by its current ecommerce infrastructure, which now serves nearly 34,000 clients. As it expands its offerings, it plans to augment its e-commerce platform with the technology it has acquired from Infocon.

Digital River acquired Infocon in late March for $1,032,000 in cash and notes. The agreement also provides Infocon with the opportunity for an additional earn-out based on Digital River's achieving certain revenue metrics related to the business during the twelve months following the closing of the acquisition.

As part of its agreement with Infocon, Digital River acquired client contracts with Drug & Market Development Publications, BioProcess International, Lippincott Williams & Wilkins, Mealey Publications, and California Business Journals. "Digital River expects the acquisition to be mildly accretive," Ronning said.

Infocon president and CEO Mark Hartsell told NLINL, "I will remain with Digital River as the vice president, E-Subscriptions, and the rest of our staff remains, as well.

"This was an absolute tremendous fit," Hartsell continued, "for both Infocon America and Digital River, who already services publishers, but Digital River needed a stronger subscription-based web solution and chose Infocon America as the leader in web solutions for publishers as an acquisition."

Digital River, founded in 1994, is headquartered in Minneapolis with offices throughout the U.S. and Europe. www.digitalriver.com

www.INFOCONAMERICA.com