DG Systems completes merger with FastChannel Network

June 16, 2006

DG Systems, a provider of digital media distribution services to the advertising and broadcast industries, has completed its merger, valued at approximately $37.5 million, with privately-held FastChannel Network.

Since executing the merger agreement in December 2005, operating expenses at the combined company, which is now called DG FastChannel, have been reduced by $2 million a year, principally through staff reductions. DG FastChannel generated revenue of $83.3 million in 2005.

The combined company's digital delivery network reaches nearly 100 percent of all television stations, television and cable networks, cable systems and radio stations in the U.S. and Canada. Offering multiple redundant digital pathways featuring both satellite and Internet delivery, DG FastChannel is capable of handling HD spots to virtually every relevant media outlet.

The new network provides integrated digital advertising services to thousands of advertisers, agencies, newspaper publishers and television and radio broadcasters. These services include:

· advertising distribution capabilities for television, radio, and print;

· online business intelligence offerings and searchable database of television advertisements;

· digital asset management tools for archiving and collaboration; and

· media intelligence offerings, including broadcast verification.

For more information, visit www.dgsystems.com, www.fastchannel.com and


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