Dallas, TX – May 5, 2010 – DG FastChannel, Inc. (NASDAQ: DGIT), a leading provider of digital media services to the advertising, entertainment and broadcast industries, today reported record first quarter financial results. Consolidated revenue for the first quarter 2010 increased 31% to $54.2 million compared to $41.4 million in the same period of 2009. First quarter Adjusted EBITDA increased 71% to $24.1 million compared to $14.1 million for the same period of 2009.

“We are very pleased with our strong first quarter 2010 performance,”  said Scott Ginsburg, Chairman and CEO of DG FastChannel.  “Stellar growth in both traditional and online advertising, the continued adoption of the high definition (HD) advertising format, and the advent of a hotly contested year in politics all contributed to our accelerated growth this quarter.”

A review of the Company’s performance demonstrates:

  -First quarter organic revenue growth of 31% from the year-earlier period.

  -First quarter revenue from the delivery of HD advertising content increased 80% to $19.7 million compared to $10.9 million in the same period of 2009.

  -First quarter revenue from the Company’s online media service division, Unicast increased by 53% from the year earlier period.

  -As of March 31, 2010, the Company reported $51.0 million in cash and $97.1 million of debt, or net debt of $46.1 million.

  -Subsequent to quarter end, the Company completed a public equity offering raising net proceeds of approximately $108 million.  With the proceeds from the equity offering all outstanding debt was retired.

  -After giving effect to the application of the equity proceeds, debt retirement, and interest rate swap terminations, the Company’s adjusted cash balance as of March 31, 2010 was approximately $59 million.

  -First quarter 2010 net income was $8.0 million, or $0.32 per diluted share, compared with net income of $1.6 million, or $0.07 per diluted share in the same period of 2009.

  -First quarter 2010 non-GAAP net income was $10.4 million, or $0.41 per diluted share, compared to non-GAAP net income of $4.0 million, or $0.19 per diluted share in the same period of 2009.

Mr. Ginsburg concluded, “DG FastChannel’s first quarter 2010 performance positions the Company well this year for what is shaping up to be a robust advertising environment.  With the completion of the recent equity offering and the move to a ‘net cash’ position in early April, the Company has substantially improved its free cash flow, financial flexibility, and the  opportunity to negotiate a larger and enhanced revolving credit facility.  As  opportunities come along to better serve our customers and add value for our shareholders, we are well prepared.”

First Quarter 2010 Financial Results Webcast

The Company’s first quarter conference call will be broadcast live on the Internet at 9:00 a.m. ET on Wednesday, May 5, 2010.  The webcast is open to the general public and all interested parties may access the live webcast on the Internet at the Company’s Web site at www.dgfastchannel.com.  Please allow 15 minutes to register and download or install any necessary software.

Adjusted EBITDA and non-GAAP net income should be considered in addition to, not as a substitute for, the Company’s operating income and net income, as well as other measures of financial performance reported in accordance with GAAP.

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial measures to the comparable GAAP measures.