Press Release

FOR IMMEDIATE RELEASE

FREE DIGITAL RIVER DOWNLOAD UTILITY GAINS SOFTWARE-UPDATE TOOL

I-stream With Updates Delivers Custom Software
Patches and Fixes, Eases All File Downloads

MINNEAPOLIS, Minn., July 20, 1999 -- Digital River (Nasdaq: DRIV), the worldwide leader in electronic software delivery and download technology, has added new software-update alert capabilities to its free i-stream (SM) download-management utility. The new Updates feature allows PC users to check for the availability of updates to their computer programs, then download any or all of the files from a single, clearly organized list.

Once one or more of the updates is selected, i-stream's functions help facilitate efficient problem-free downloads. Its advanced download-management features include the ability to "pause" partial downloads for resumption later and "heal" incomplete downloads interrupted by dropped Internet connections. The i-stream utility also offers direct online access to an around-the-clock customer service team, so users can get immediate help with download concerns or questions. I-stream also features one-click access to an extensive online help system, designed to make customers feel more comfortable with ordering and downloading software from the Internet. For software vendors, I-stream With Updates can create Web commerce opportunities by alerting customers to relevant upgrades.

"Thanks to i-stream With Updates, PC users no longer need to spend time and effort combing the Web to make sure they have the most current software patches and bug fixes," said Joel Ronning, Digital River's CEO. "I-stream's one-click update alert is another way that Digital River improves software downloads for everyone, and in today's era of frequent security patches and virus outbreaks, it's also a truly useful, reassuring tool."

To support i-stream's Updates feature, Digital River maintains a database of thousands of updates for the industry's most popular software titles. The database includes programs from Digital River's software-partner library -- the largest collection of downloadable titles on the Internet -- and many other popular programs. Each database entry includes a brief file description, so users know what each update does prior to downloading.

I-stream With Updates is currently in the final stages of testing with select Digital River Web-commerce partners, who are making it available to customers who purchase downloadable products.

About Digital River*
Digital River, Inc. (Nasdaq: DRIV), is the largest online source of software and a leading outsource provider of Web-based commerce solutions. The company, based in Minneapolis, provides more than 6,000 software publishers and online retailers with its proprietary technology for Internet delivery of more than 100,000 digital products, including 30,000 software products and applications. For more information, visit Digital River's Web site at http://www.digitalriver.com.

* Except for the historical information contained herein, this press release contains forward-looking statements, including statements containing the words, "believes," "anticipates," "expects" and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: the Company's limited operating history and variability of operating results; market acceptance of electronic software delivery; the Company's ability to maintain relationships with software publishers and online retailers; competition in the electronic commerce market; and other risk factors referenced in the Company's public filings with the Securities and Exchange Commission.


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