Digital River Expands Global Operations and E-Commerce Capabilities in Europe
Establishes wholly-owned subsidiaries and opens branch offices in Ireland and Luxembourg
MINNEAPOLIS, April 3, 2006 -- Digital River, Inc. (NASDAQ: DRIV), a global leader in e-commerce outsourcing, today announced that it expanded its international operations and e-commerce capabilities in Europe. As part of its expansion efforts, the company established two wholly-owned subsidiaries - Digital River Ireland, Ltd. and Digital River International S.a.r.l. Located in new offices, Digital River Ireland is headquartered in Shannon, Ireland, and Digital River International in Luxembourg, Luxembourg. Digital River also has international offices in Cologne, Germany; London, England; Taipei, Taiwan; and Tokyo, Japan.
“The launch of our European subsidiaries represents an important part of our long-term strategy to extend our global footprint,” said Joel Ronning, Digital River’s CEO. “We intend to leverage our new resources to not only provide expanded support for our growing base of international clients, but also accelerate our growth in European markets. Long-term, we expect that our sales outside of the United States will increase from nearly 40 to more than 60 percent of our business.”
Digital River’s Shannon and Luxembourg offices will manage Digital River’s non-U.S. e-commerce activity and support a combination of client and corporate functions, including sales, client services, human resources, finance, customer service, fraud prevention and IT. In addition, Digital River is increasing its data center capabilities in Dublin, Ireland, to further support its non-U.S. e-commerce transactions. With local resources on the ground in these locations, Digital River intends to provide an expanded operations and e-commerce infrastructure for its European clients and their customers.
To establish its new subsidiaries and open its new offices, the company is working closely with local European agencies. These agencies include the Government of the Grand Duchy of Luxembourg as well as Shannon Development from Shannon, Ireland.
“The Government of the Grand Duchy of Luxembourg and Shannon Development have been very supportive and have provided a favorable business climate for us to grow our international operations,” said Tim McCauley, Digital River’s senior vice president of global operations.
About Digital River, Inc.
Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for more than 40,000 software publishers, manufacturers, distributors and online retailers. 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; Taipei, Taiwan; and Tokyo, Japan. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.
Forward-Looking Statements
In addition to the historical information contained herein, this press release contains forward-looking statements, including statements regarding the company’s plans to expand its e-commerce platform, services and market presence, especially in the European region, and accelerate the company’s growth and sales in European and other markets outside the United States, as well as other statements containing the words, “will,” “ intends,” “ plans,” “expects,” and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: Digital River’s limited operating history and variability of operating results; competition in the electronic commerce market; difficulties in penetrating or expanding into new geographic regions and other risks associated with international operations in general and in Europe in particular; the ability of the company to successfully expand its platform and services and the local market’s acceptance of such offerings; and other risk factors referenced in Digital River’s public filings with the Securities and Exchange Commission.
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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