Exhibit 99.1
FOR IMMEDIATE RELEASE:
Press Contacts:
Andrew Morrison Sandra O'Keefe
Chief Financial Officer Alexander Ogilvy Public Relations
Digital Goods [email protected]
[email protected] www.alexanderogilvy.com
www.digitalgoods.com 212-880-5200
(978) 461-4175
DIGITAL GOODS ANNOUNCES COMPLETION OF NEW ROUND OF FINANCING
Investors Include Tudor Funds, Apex Venture Partners, Ascent Venture Partners,
Ritchie Capital Management, and SI Venture Partners
MAYNARD, MA - December 22, 2000 - Digital Goods (Nasdaq: DIGS) the leader in
digital content marketing, today announced completion of a $7,000,000 equity
financing led by Ascent Venture Partners, Tudor Funds, Apex Investment Fund, SI
Venture Partners and Ritchie Capital Management, each of which is an existing
investor in Digital Goods. This Series C convertible preferred issue is priced
at $1.91 per common share equivalent and is similar in structure and terms to
the Company's Series B issue. The new funds will be used for general corporate
purposes.
"Given the challenging market environment, completion of this funding is a
strong expression of our existing shareholders' confidence in the strength of
our business model and new strategic direction," noted Digital Goods Chairman
and CEO Scott Griffith. "This event punctuates an unusually active period that
includes the launch of our digital content marketing strategy, a new name-
Digital Goods, a strategic alliance with digital rights management (DRM)
services leader Reciprocal, Inc., and numerous technology partnerships. The
entire Digital Goods team deserves credit for working so hard to bring about
these important changes. This funding will enable Digital Goods to capitalize on
our content partners' rapidly growing need to successfully market, distribute
and sell content online."
About Digital Goods
Softlock.com Inc., now conducting business as Digital Goods (NASDAQ: DIGS) is
the leader in digital content marketing for rights protected content. Our secure
online marketing and distribution system helps publishers deliver content to a
maximum audience while respecting copyrights. Consumers gain instant access to
valuable and relevant content wherever and whenever they are ready to buy.
Digital Goods is revolutionizing the way digital content is marketed, sold, and
distributed online, while enabling content publishers and online affiliates to
share in the commercial benefits of the rapidly growing marketplace for digital
content. The Digital Goods digital content marketing network includes hundreds
of online affiliates and content publishers, including industry leaders such as
Standard & Poor's, Simon & Schuster, Dun & Bradstreet, WetFeet.com, Borders.com,
iVillage.com, About.com, Infospace and The Money Page. Digital Goods is based in
Maynard, MA, USA. For more information, please visit www.digitalgoods.com.
# # #
Digital Goods Statement
SoftLock is a registered trademark of SoftLock.com, Inc. Digital Goods, and
Passalong are trademarks of SoftLock.com, Inc. All other products or company
names are trademarks or registered trademarks of their respective owners. This
news release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements are subject to risks and
uncertainties that could cause actual results to vary materially from those
projected in the forward-looking statements. SoftLock.com, Inc. d/b/a Digital
Goods may experience significant fluctuations in future operating results due to
a number of economic, competitive and other factors, including, among other
things, the size and timing of customer orders, changes in laws, new or
increased competition, delays in new products, production problems, changes in
market demand, market acceptance of new products, seasonality in product
purchases and availability of capital to finance intended expansion of
operations. These factors and others could cause operating results to vary
significantly from those in prior periods, and those projected in
forward-looking statements. Additional information with respect to these and
other factors, which could materially affect the Company and its operations, are
included in the Company's fillings with the Securities and Exchange Commission
and are incorporated herein.
