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ContentGuard and Digital Goods Implement Transition Plan to Aid Content Providers

Press release from the issuing company

Bethesda, MD and Maynard, MA - May 30, 2001 - ContentGuard, Inc. and Digital Goods (NASDAQ: DIGS) have signed an exclusive agreement under which Digital Goods will refer its eBook content providers to ContentGuard for continued service. Ranjit Singh, ContentGuard President and COO said, "Our consultants and engineers are working around the clock in order to ensure that Digital Goods' content providers could resume selling their eBooks to consumers with minimal disruption." Based on its RightsEdge DRM technology platform, a ContentGuard-hosted storefront solution has been designed and implemented to support the preparation, online sales and secure distribution of eBooks for content providers. This new "eContentSeller.com" storefront is integrated with ContentGuard's established and proven rights and financial clearing services. "ContentGuard is committed to accelerating the availability of eBook content and enabling the distribution points necessary to stimulate the emerging digital content market," said Michael Miron, ContentGuard CEO. "In understanding the urgent needs of Digital Goods' content providers, our tow companies, through an extraordinary team effort, are helping to protect their upfront investment in technology and business processes while providing them with the opportunity to expand their eBook-selling initiatives. "Numerous industry players are interested in building on the value Digital Goods has created over the years, but in recent weeks, minimizing disruption to our content providers, their publications and their customers, has been one of our most time-critical goals," remarked Jonathan Schull, Digital Goods President and CEO. "ContentGuard clearly shared our commitment to a speedy transition and quality service. Our stakeholders and customers should be well served by this alliance." ContentGuard has already signed a substantial number of former Digital Goods content providers to utilize ContentGuard's new eContentSeller.com storefront solution and existing RightsEdge DRM solutions. ContentGuard expects to have customers up-and-running in a matter of days. Negotiations with additional Digital Goods customers are underway. ContentGuard will demonstrate its new eContentSeller.com storefront solution and hold workshops exclusively for Digital Goods' content providers at the BookExpo America conference in Chicago, Illinois, which is taking place from May 30 through June 3, 2001. Visit ContentGuard at BookExpo - Booth #5257. Publishers can obtain additional information and assistance by calling ContentGuard at 800-870-0705.

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