BlueHornet Releases Enhanced Version of its E-Mail Marketing Suite

BlueHornet's eMS 3.0 transforms e-mail from message delivery vehicle to multi-channel communications tool

MINNEAPOLIS, January 4, 2005-- BlueHornet Networks, Inc., a leading provider of e-mail marketing solutions and subsidiary of Digital River, Inc. (NASDAQ: DRIV), today announced the release of its e-Marketing Suite (eMS) 3.0, a significant upgrade to its advanced e-mail marketing application. The newly enhanced version combines easy-to-use, e-mail marketing tools and technology to help businesses facilitate and standardize sophisticated e-communications with customers and prospects across multiple business channels. With centralized control over global business rules, companies of all sizes can use eMS 3.0 to drive online and offline marketing revenue.

eMS 3.0's advanced functionality addresses the e-marketing needs of businesses of all sizes, including enterprises with corporate divisions, franchises or complex distribution chains. eMS 3.0 builds upon the strength of existing capabilities, including API access, Web analytics integration and deliverability management consulting, to round out a full suite of multi-channel e-marketing services. eMS's new multi-channel features include:

• Smart Lists™ that automate business rules and enable customer-targeted mailings by dynamically segmenting customers across multiple categories and attributes;
• Dynamic content for increasing customer retention and acquisition by tailoring communication and targeted merchandising messages based on customer behaviors and shopper profiles;
  
• Event-triggered messaging , which automatically activates one-to-one communications with prospects and customers based on user actions or pre-determined dates; and
  
• Sub-accounts , which grant partitioned e-communication system access to affiliates, regional branches or franchises while maintaining centralized administrative control.

“Because BlueHornet's product development is driven by client input, eMS 3.0's new features reflect a change in the way companies are using e-mail technology,” said Tim Marusich, Digital River's vice president and general manager of BlueHornet . “Instead of viewing e-mail marketing as a single message delivery vehicle, companies are viewing it as a sophisticated customer relationship tool. It's becoming the tool of choice for optimizing multi-channel marketing initiatives and complex enterprise communications.”

“eMS 3.0 is a significant product upgrade and signals BlueHornet's and Digital River's joint ongoing commitment to delivering sound e-marketing best practices and advanced e-marketing services,” said Joel Ronning, Digital River's CEO. “We intend to leverage eMS 3.0 across our combined organization to offer our clients more efficient ways to manage their online businesses, build relationships with prospects and customers across multiple channels, and ultimately increase their e-commerce site revenues.”

About BlueHornet
BlueHornet, a wholly owned subsidiary of Digital River, Inc., is a leading provider of permission based e-mail marketing solutions. BlueHornet conducts e-mail campaigns for hundreds of direct clients, including Sprint, MBNA, Brinker International, 3M, World Wildlife Fund, GUESS?, House of Blues Entertainment, Inc., Kyocera Wireless and Red Lobster. In addition, BlueHornet supports over 100 resellers, many using private label versions of its e-mail marketing solution. For more information, visit www.bluehornet.com.

About Digital River
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, site merchandising, advanced reporting and analytics, product fulfillment, e-marketing and multi-lingual customer service.

Founded in 1994, Digital River is headquartered in Minneapolis with offices in major U.S. and European cities. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.

Digital River is a registered trademark of Digital River, Inc. BlueHornet is a trademark of BlueHornet Networks, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.