Digital River Informed By Symantec That It Will Not Extend E-commerce Contract Beyond June 30, 2010 Expiration

* Reuters is not responsible for the content in this press release.

Mon Oct 12, 2009 7:00am EDT

Expects Third Quarter Revenue and Earnings Per Share At Or Slightly Above Top
End of Guidance Range
MINNEAPOLIS--(Business Wire)--
Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce
solutions, announced today that Symantec Corporation (NASDAQ: SYMC) has notified
Digital River that Symantec will not extend its existing e-commerce agreement.
The agreement, under which Digital River provides a variety of
e-commerce-related services to Symantec, expires on June 30, 2010. 

Symantec informed Digital River on Friday, October 9th that it expects to move
all of the online traffic currently outsourced to Digital River to an internally
developed Symantec e-commerce system before the current contract expires.
Symantec has not yet informed Digital River regarding the timing of its
migration plans or the nature of the support it will require from Digital River
during the transition period. 

"We are surprised and deeply disappointed that Symantec has chosen to move to an
internally developed system, but we remain very confident in the future of our
business," said Joel Ronning, Digital River's CEO. "While Symantec is still our
largest customer, the proportion of Symantec revenues relative to our other
customers has declined significantly over the past few years as our non-Symantec
business has grown at an increasing rate. Our company is financially strong, our
new business pipeline remains healthy, and sales activity in the software,
consumer electronics and business-to-business sectors continues to grow. As more
businesses move to online sales and distribution, Digital River is well
positioned for future growth and we are confident in our ability to unlock
potential in key markets." 

In 2008, sales of products for Symantec accounted for 24.3% of Digital River
revenue and sales derived from proprietary Digital River services sold to
Symantec consumers accounted for 9.4% of Digital River revenue. For Digital
River`s quarter ended June 30, 2009, sales of Symantec products accounted for
22.5% of revenue and related services revenues accounted for 7.5% of revenue. 

Digital River also announced that it expects financial results for the third
quarter ending September 30, 2009, will be at or slightly above the top end of
the guidance it provided on July 29, 2009. At that time, the Company said it
expected third quarter revenue of $96.5 - $98.5 million, GAAP diluted net income
per share of $0.26 - $0.29 and non-GAAP diluted net income per share of $0.38 -
$0.41, both assuming a 27 percent tax rate. The Company also said it expects
sequential revenue from its non-Symantec business to have grown at approximately
8% during the third quarter, compared to approximately 2% sequential growth
during the second quarter 2009. The Company expects to provide additional
information in its third quarter earnings announcement which will be released
after market close on November 3, 2009. 

Digital River will hold a conference call today at 8:30 a.m. Eastern to discuss
this announcement. A live webcast of this conference call can be accessed at
http://www.digitalriver.com/2009/investorrelations/. Alternatively, a live
broadcast of the call may be heard by dialing 1-888-373-5705 inside the United
States or Canada, or by calling 1-719-457-3840 from international locations, and
using the conference ID # 245630. A webcast replay of the call will be archived
on Digital River`s corporate Web site. 

About Digital River, Inc.

Digital River, Inc., a leading provider of global e-commerce solutions, builds
and manages online businesses for software and game publishers, consumer
electronics 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
across the U.S., Asia, Europe and South America. For more details about Digital
River, visit the corporate Web site at www.digitalriver.com or call +1
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 transition of business to Symantec`s in-house e-commerce system; 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 and Form 10-K/A
for the year ended Dec. 31, 2008. 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.

The forward-looking statements reflect Digital River`s expectations as of
October 12, 2009. Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management's analysis only as of the
date hereof. The Company undertakes no obligation to update these
forward-looking statements to reflect events or circumstances that may arise
after the date hereof.

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

Digital River, Inc.
Investor Relations:
Ed Merritt, +1 952-540-3362
Vice President, Investor Relations
emerritt@digitalriver.com
or
Media Relations:
Gerri Dyrek, +1 952-253-1234, ext. 38396
Senior Director, Public Relations
gdyrek@digitalriver.com



Copyright Business Wire 2009

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