Canon expands into European Markets with help from Digital River

MINNEAPOLIS -- Aug. 1, 2005 -- Digital River, Inc. (NASDAQ:DRIV - News), a global leader in e-commerce outsourcing, today announced it has extended its agreement with Canon, Europa, N.V., a leader in photographic and imaging technology. To help Canon expand its online sales into the German market, Digital River built and launched a localized outlet store on eBay. The new e-commerce site, which can be accessed from http://stores.ebay.de/Canon-Outlet-Deutschland, offers Canon's German consumers great prices on refurbished cameras, camcorders, lenses, projectors and binoculars.

Digital River launched Canon's first outlet store on eBay in 2004 for the U.K. market. Today, Digital River is Canon's official Canon branded web reseller.

"We are pleased to be recognized as the official Internet reseller under the Canon brand," said Joel Ronning, Digital River's CEO. "We can offer Canon an international e-commerce solution that exposes its brand into one of the most highly trafficked marketplaces in the world. We can offer Canon's customers a seamless online buying experience as well as 24X7 access to some of the industry's leading cameras and imaging products."

Visitors to the new online store will encounter a fully localized online shopping experience. Product details and site content are displayed in German. Transactions are processed in the Euro.

In addition to processing orders, managing fraud prevention screening and handling customer service on the site, Digital River provided the back end integration to Canon's physical fulfillment partner, Ingram Micro Europe, a division of Ingram Micro Inc.

"We selected Digital River as our e-commerce partner because of the company's capabilities to serve the entire European market and its expertise in marketing and growing online businesses," said Bernard Winterhalter, Canon's manager of European web sales. "Our eBay stores continue to receive favorable feedback ratings from consumers that have shopped on the sites. We plan to open more online stores and expand into other European markets in the future."

About Digital River, Inc.

Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for more than 40,000 software publishers, manufacturers, distributors and online retailers. 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 prevention, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.