Exhibit 99.1

Digital River Exceeds First Quarter Revenue and Earnings Expectations

Raises full year revenue and non-GAAP EPS Guidance

MINNEAPOLIS--(BUSINESS WIRE)--Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, reports its first quarter financial results.

First Quarter Ended March 31, 2008

GAAP Results

First quarter revenue totaled $103.6 million, an increase of 13 percent from $91.6 million during the same period in 2007. These results exceeded management’s first quarter revenue guidance of $98.5 million.

First quarter GAAP net income was $18.3 million or $0.43 per diluted share, including approximately $3 million of stock-based compensation expense, and compared to GAAP net income of $20.7 million or $0.46 per diluted share, in the first quarter of 2007. These results exceeded management’s guidance of $0.40 per diluted share for the first quarter.

Non-GAAP Results

First quarter non-GAAP net income was $21.6 million or $0.50 per diluted share, which compared to non-GAAP net income of $25.0 million, or $0.54 per diluted share in the first quarter of 2007. These results exceeded management’s guidance of $0.48 per diluted share for the first quarter.

Non-GAAP net income is computed by starting with GAAP pre-tax income as reported on the Company’s statement of operations, then adding back amortization of acquisition-related intangibles and stock-based compensation expense, to calculate non-GAAP pre-tax income. This amount is then taxed at 31 percent to arrive at non-GAAP net income. This amount is then divided by fully-diluted GAAP shares outstanding, which includes the impact of the Company’s contingent convertible notes, to derive non-GAAP diluted net income per share. To provide further clarity, a detailed reconciliation on the comparability of the GAAP and non-GAAP data has been provided in table form following the financial statements accompanying this release.

“We are pleased with the results we delivered in the first quarter, which exceeded our expectations. We made great progress signing new agreements with top clients in both the games and consumer electronics markets,” said Joel Ronning, Digital River’s CEO. “We expect these wins and our investments in our core business and new technologies to accelerate revenue growth in the second half of the year.”

2008 Guidance

Forward-looking guidance for the quarter ending June 30, 2008, is as follows:

Second Quarter

• Revenue of $91 million;
• GAAP diluted net income per share of $0.25, including stock-based compensation expense of $3.5 million; and
• Non-GAAP diluted net income per share of $0.33.

Full Year

Forward-looking guidance for the period ending December 31, 2008, is as follows:

• Revenue of $401 million;
• GAAP diluted net income per share of $1.58, including stock-based compensation expense of $13.7 million; and
• Non-GAAP diluted net income per share of $1.89.

Digital River will hold a conference call today at 4:45 p.m. EDT to discuss first quarter financial results. A live webcast of the conference call can be accessed from http://www.digitalriver.com/2008/q1earnings/. Alternatively, a live broadcast of the call may be heard by using conference ID #43161389 and dialing (888) 218-6314 inside the United States or Canada, or by calling (706) 634-9714 from international locations. A webcast replay of the call will be archived on Digital River’s corporate Web site.

About Digital River, Inc.

Digital River, Inc., a leading provider of global e-commerce solutions, builds and manages online businesses for software publishers, consumer technology manufacturers, distributors, online retailers and affiliates. 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, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.

Founded in 1994, Digital River is headquartered in Minneapolis with offices in major U.S. cities as well as Cologne, Germany; London, England; Shannon, Ireland; Luxembourg, Luxembourg; Stockholm, Sweden; Taipei, Taiwan; Tokyo, Japan; and Shanghai, China. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the Company’s anticipated future growth, including future financial performance, as well as statements containing the words “anticipates,” “believes,” “plans,” “will,” or “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 differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others: the Company’s operating history and variability of operating results; competition in the e-commerce market; challenges associated with international expansion; potential consequences surrounding findings of our internal investigation and informal SEC inquiry into our stock option granting practices; any potential civil litigation relating to our stock option granting practices; our ability to successfully manage our business while undertaking significant internal investments; and other risk factors referenced in the Company’s public filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2007. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Digital River’s most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time-to-time.

The forward-looking statements regarding second quarter and full year 2008 reflect Digital River’s expectations as of May 1, 2008. Results may be materially affected by many factors, such as changes in global economic conditions and consumer spending, fluctuations in foreign currency rates, the rate of growth of online commerce and the Internet, progress with key partners and other factors. The guidance assumes, among other things, that there are no changes to stock-based compensation expense and anticipated tax rates. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.

Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.

Digital River, Inc.
First Quarter Results
(Unaudited, in thousands)
Subject to reclassification
Condensed Consolidated Balance Sheets	As of
	March 31,			December 31,
	2008			2007
Assets
Current assets
Cash and cash equivalents	$	305,800		$	381,788
Short-term investments		289,612			315,636
Accounts receivable, net		63,127			64,914
Deferred income taxes		2,809			7,899
Prepaid expenses and other		5,976			4,577
Total current assets		667,324			774,814
Property and equipment, net		31,583			31,102
Goodwill		280,460			261,885
Intangible assets, net		39,951			32,382
Deferred income taxes		15,606			15,606
Other assets		6,661			11,955
Total assets	$	1,041,585		$	1,127,744
Liabilities and stockholders' equity
Current liabilities
Convertible senior notes	$	195,000		$	-
Accounts payable		191,329			180,386
Accrued payroll		13,564			12,704
Deferred revenue		11,980			10,384
Accrued acquisition liabilities		46			399
Other accrued liabilities		39,773			41,229
Total current liabilities		451,692			245,102
Non-current liabilities
Convertible senior notes		-			195,000
Other liabilities		11,736			11,362
Total non-current liabilities		11,736			206,362
Total liabilities		463,428			451,464
Stockholders' equity
Common stock		430			425
Treasury stock		(59	)		(20	)
Additional paid-in capital		536,193			576,529
Retained earnings		143,695			125,187
Less treasury stock		(149,580	)		(56,774	)
Accumulated other comprehensive income		47,478			30,933
Stockholders' equity		578,157			676,280
Total liabilities and stockholders' equity	$	1,041,585		$	1,127,744

Digital River, Inc.
First Quarter Results
(Unaudited, in thousands, except per share amounts)
Subject to reclassification
Condensed Consolidated Statement of Income
	Three months ended March 31,
	2008			2007
Revenue	$	103,634		$	91,631
Costs and expenses:
Direct cost of services		4,175			2,563
Network and infrastructure		10,188			7,495
Sales and marketing		39,730			34,189
Product research and development		12,670			8,652
General and administrative		10,244			10,113
Depreciation and amortization		3,834			2,858
Amortization of acquisition-related intangibles		2,176			2,746
Total costs and expenses		83,017			68,616
Income from operations		20,617			23,015
Interest income		6,246			7,882
Other expense, net		(749	)		(889	)
Income before income tax expense		26,114			30,008
Income tax expense		7,831			9,302
Net income	$	18,283		$	20,706
Net income per share - basic	$	0.47		$	0.51
Net income per share - diluted	$	0.43		$	0.46
Shares used in per share calculation - basic		38,528			40,492
Shares used in per share calculation - diluted		43,506			46,348
Calculation of GAAP Diluted Net Income Per Share
	Three months ended March 31,
	2008			2007
GAAP net income	$	18,283		$	20,706
Add back debt interest expense and issuance cost amortization, net of tax benefit		434			435
Adjusted net income for GAAP EPS calculation	$	18,717		$	21,141
Net income per share - diluted	$	0.43		$	0.46
Shares used in per share calculation - diluted		43,506			46,348

Digital River, Inc.
First Quarter Results
(Unaudited, in thousands)
Subject to reclassification
Condensed Consolidated Statements of Cash Flows
	Three months ended March 31,
	2008			2007
Operating Activities:
Net income	$	18,283		$	20,706
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of acquisition-related intangibles		2,176			2,746
Change in accounts receivable allowance, net of acquisitions		411			119
Depreciation and amortization		3,834			2,858
Stock-based compensation expense		3,031			3,476
Excess tax benefits from stock-based compensation		(412	)		(8,496	)
Deferred and other income taxes		5,345			4,500
Change in operating assets and liabilities (net of acquisitions):
Accounts receivable		4,374			10,055
Prepaid and other assets		3,732			985
Accounts payable		4,798			9,981
Deferred revenue		1,248			(197	)
Income tax payable		(7,357	)		4,760
Other accrued liabilities		5,190			(72	)
Net cash provided by operating activities		44,653			51,421
Investing Activities:
Purchases of investments		(94,714	)		(79,341	)
Sales of investments		122,050			52,075
Cash paid for acquisitions, net of cash received		(16,481	)		(4,344	)
Purchases of equipment and capitalized software		(4,192	)		(3,445	)
Net cash (used in)/provided by investing activities		6,663			(35,055	)
Financing Activities:
Exercise of stock options		1,985			5,639
Repurchase of common stock		(137,858	)		-
Repurchase of restricted stock to satisfy tax withholding obligation		(355	)		(224	)
Excess tax benefits from stock-based compensation		412			8,496
Net cash (used in)/ provided by financing activities		(135,816	)		13,911
Effect of exchange rate changes on cash		8,512			1,658
Net (decrease)/ increase in cash and cash equivalents		(75,988	)		31,935
Cash and cash equivalents, beginning of period		381,788			390,243
Cash and cash equivalents, end of period	$	305,800		$	422,178
Cash paid for interest on Convertible Senior Notes	$	1,219		$	1,219

Digital River, Inc.
GAAP to non-GAAP Reconciliations
(Unaudited, in thousands, except per share amounts)
Calculation of non-GAAP Diluted Net Income Per Share
	Three months ended										Twelve months ended
	March 31,			June 30,		September 30,			December 31,		December 31,
	2007			2007		2007			2007		2007
GAAP pre-tax income	$	30,008		$	21,005	$	22,174		$	29,888	$	103,075
Add back: amortization of acquisition-related intangibles		2,746			1,607		1,611			1,622		7,586
Add back: stock-based compensation expense		3,476			3,649		3,411			3,206		13,742
Non-GAAP pre-tax income		36,230			26,261		27,196			34,716		124,403
Income tax expense @ 31%		11,231			8,141		8,431			10,762		38,565
Non-GAAP net income	$	24,999		$	18,120	$	18,765		$	23,954	$	85,838
Non-GAAP net income per share - diluted	$	0.54		$	0.39	$	0.41		$	0.53	$	1.87
Shares used in per share calculation - diluted		46,348			46,637		45,386			45,401		45,914
	Three months ended
	March 31,
	2008
GAAP pre-tax income	$	26,114
Add back: amortization of acquisition-related intangibles		2,176
Add back: stock-based compensation expense		3,031
Non-GAAP pre-tax income		31,321
Income tax expense @ 31%		9,710
Non-GAAP net income	$	21,611
Non-GAAP net income per share - diluted	$	0.50
Shares used in per share calculation - diluted		43,506
Breakdown of stock-based compensation expense
	Three months ended
	March 31,
	2008
Direct cost of services	$	192
Network and infrastructure		32
Sales and marketing		1,102
Product research and development		262
General and administrative		1,443
Total	$	3,031
Non-GAAP Guidance Reconciliation
	Q2 - 2008					FY - 2008
	Guidance					Guidance
Expected GAAP net income per share - diluted	$	0.25				$	1.58
Add back amortization of acquisition-related costs		0.06					0.20
Add back stock-based compensation expense		0.08					0.33
Tax variability		(0.05	)				(0.19	)
Deduct impact of contingent convertible notes		(0.01	)				(0.03	)
Expected non-GAAP diluted net income per share	$	0.33				$	1.89

CONTACT:
Digital River, Inc.
Investor Relations Contact:
Ed Merritt, 952-540-3362
Vice President, Investor Relations
emerritt@digitalriver.com
or
Media Relations Contact:
Gerri Dyrek, 952-253-8396
Director, Public Relations
gdyrek@digitalriver.com