DIGITAL RIVER ANNOUNCES ACQUISITION OF ORBIT COMMERCE
Further extends e-commerce outsourcing model to small to mid-sized enterprise market

MINNEAPOLIS, MN, October 1, 2001 - Digital River, Inc. (NASDAQ: DRIV), a leading global e-commerce outsource provider, today announced that it has acquired substantially all of the assets and related liabilities of Orbit Commerce, Inc. The acquisition, which is expected to be mildly accretive in the fourth quarter of 2001 and in 2002, supports Digital River's recently announced acquisition strategy, reinforces the company's e-commerce leadership position and further extends its market potential in the small to mid-sized enterprise (SME) market.

"This acquisition offer us strong market and partnership opportunities as well as new channels for growing our business," said Joel Ronning, Digital River's CEO. "We have spent the last five years demonstrating our e-commerce outsourcing expertise, successfully working with small and large companies alike. Through this acquisition, we plan to further leverage that expertise by expanding our market among small to mid-sized enterprises and generating new business opportunities."

As part of its agreement with Orbit, Digital River intends to maintain the strategic channel partnerships that Orbit has established with Gateway Inc., VeriSign, Inc., Cincinnati Bell and other large enterprises. Orbit enabled these partners to establish e-commerce and content management solutions for their SME customers by delivering its integrated suite of e-commerce applications via Web-enabled templates. Once solutions for the sites were established, the channel partners managed on-going customer relationships.

Digital River plans to leverage its e-commerce system and Orbit's channel partnership model to support a growing base of SME sites and its E-Business Services Division sales. Prior to the acquisition, Orbit's channel partners generated a base of approximately 3,500 sites. During the next year, Digital River plans to transition these sites to its e-commerce platform, substantially increasing the number of sites it hosts.

"Digital River is committed to providing Orbit's clients and partners superior service through our world-class e-commerce infrastructure," said Ronning. "Our system is designed to scale to meet high volume requirements and has grown substantially year-over-year. Our acquisition of Orbit marks the eighth acquisition we have made in two and a half years. We have demonstrated expertise in integrating clients and cultures, consolidating operations and increasing efficiencies to make acquisitions accretive to our bottom line."

Under the terms of the agreement, Digital River acquired certain assets and liabilities associated with Orbit's business in exchange for $964,000 and approximately 728,000 shares of Digital River common stock, subject to certain escrow and sale restrictions, and certain resale registration rights. The agreement includes an opportunity for an earnout based upon net revenue contributions from the acquired Orbit assets over the next year. Digital River plans to maintain an office in Chicago, Illinois, and retain a staff of approximately 15 former Orbit employees who will provide client services, project management and technical support.

"As the Internet sector consolidates and outsourcers continue to grow through acquisition, companies are going to find single providers like Digital River offering broader markets more robust e-commerce suites," said Paul Reilly, Orbit's CEO. "We are happy to join forces with Digital River. Orbit's partners and clients can rely on Digital River's deep e-commerce skill set and world-class infrastructure."

About Digital River
Founded in 1994, Digital River is a leading global e-commerce outsource provider, offering more than 10,000 companies complete e-commerce systems and services. The company's world-class infrastructure and professional services are proven to grow businesses quickly and profitably while reducing risk. Digital River's commerce services include e-commerce strategy, site development and hosting, order and transaction management, system integration, product fulfillment and returns, e-marketing and customer service. Digital River's clients include Symantec, Major League Baseball, Fujitsu, 3M, Autodesk, MicroWarehouse, ScanSoft and Xircom. 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. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

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 differ materially 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; competition in the electronic commerce market; and other risk factors referenced in the company's public filings with the Securities and Exchange Commission.