April 8, 2003, 12:00 AM

Digital River Launches E-Commerce Operations for Creative Bedding Technologies

Kurt Peters

Senior Executive Editor

Opens online store to offer multiple purchase options for customers of Fossfill sleep products

MINNEAPOLIS, April 8, 2003 --Digital River®, Inc. (NASDAQ: DRIV), a global leader in e-commerce outsourcing, today announced that it signed an agreement with Creative Bedding Technologies, the exclusive manufacturer and distributor of Fossfill® sleep products. Based on the agreement, Digital River built and launched an e-commerce site to support the online sales and marketing of Fossfill products. In addition to hosting the site, located at www.fossfill.com, Digital River is providing order management, fraud prevention, e-marketing and customer service. Creative Bedding Technologies` new online store offers its customers a convenient 24X7 channel for making purchases.

"We selected Digital River as our e-commerce partner because of its expertise and solid track record in growing online businesses," said Scott Van Pelt, Creative Bedding Technologies` president. "We were looking for a seasoned service provider who could take over the management of our in-house e-commerce operation as well as help us build an online presence and grow a profitable sales channel. Digital River fit the bill. Since we started working with Digital River four months ago, our online sales have nearly doubled month-over-month."

Creative Bedding Technologies` new site features its full line of Fossfill pillows, comforters and blankets, which are known for their softness, allergy sensitivity, durability and comfort. In addition to selling its Fossfill products to online consumers, Creative Bedding Technologies sells them commercially to hotels, resorts, hospitals, schools, and military bases through traditional offline channels.

"We are pleased to be able to offer Creative Bedding Technologies the benefit of our world-class e-commerce platform and proven e-marketing services," said Jay Kerutis, Digital River`s president of Software and Digital Commerce Services. "Working with nearly 34,000 companies, we`ve learned how to minimize the risk involved in building an e-commerce operation and we`ve mastered the in`s and out`s of growing a profitable online business. Our value proposition is simple. We can offer small and large companies alike a fast, reliable and cost-effective means of launching an e-commerce business - and we can accomplish this for 50 - 70 percent of the cost of building an in-house operation while growing revenues through e-marketing. The bottom line is that more and more companies, such as Creative Bedding Technologies, are discovering that outsourcing makes strong economic sense."

About Creative Bedding Technologies, Inc.

Illinois-based Creative Bedding Technologies, Inc. is a leading manufacturer and supplier of foam mattresses and positioners as well as the exclusive manufacturer and North American distributor of Fossfill®, a versatile natural synthetic fiber used in sleep products. The company markets and sells its Fossfill® Collection of pillows, comforters and blankets to the institutional healthcare industry, hotels, resorts, schools, military bases and online consumers.

About Digital River, Inc.

Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages profitable online businesses for nearly 34,000 companies worldwide. Its comprehensive e-commerce solution and world-class infrastructure are designed to help companies of all sizes quickly maximize online revenues as well as cut the costs and reduce the risks associated with running an e-commerce operation. Digital River`s international e-commerce services include site development and hosting, order management, fraud prevention, site merchandising, reporting and analytics, product fulfillment, e-marketing and multi-lingual customer service. Digital River`s clients include Symantec, Motorola, 3M, Major League Baseball Advanced Media, H&R; Block, Novell, Autodesk, ACT! and Staples.com.

Founded in 1994, Digital River is headquartered in Minneapolis with offices throughout the United States and in Europe. 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 company and product names are trademarks, registrations or copyrights of their respective owners.

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