Exhibit 99.3
                                  ------------



Avalon Digital Marketing Systems Announces Successful Emergence from Chapter 11
Bankruptcy January 11, 2005

SALT LAKE CITY, January 11, 2005 /PRNewswire/ -- Avalon Digital Marketing
Systems, Inc. (AVDS.PK) today announced it has emerged from Chapter 11
Bankruptcy, and received a concurrent capital infusion of approximately $1.3
million. The United States Bankruptcy Court for the District of Utah, Central
Division, entered an order on November 3, 2004 confirming Avalon's First Amended
Plan of Reorganization Pursuant to Chapter 11 of the United States Bankruptcy
Code (the "Plan"). The Plan became effective on November 18, 2004, with the
closing of the financing and related confirmation matters effective December 9,
2004.

"This is an exciting day for the `new' Avalon Digital," said Tyler Thompson, who
will serve as CEO for the reorganized company. "We appreciate the loyalty of our
customers, the dedication of our employees and the support from our creditors
and new investors during this process. We have labored diligently over the past
year in our efforts to position Avalon for future success. We are pleased to
have been able to continue our business and develop new products and services
while operating under Chapter 11, and we look forward to growing the company and
creating value for our stakeholders."

About Avalon Digital Marketing Systems, Inc.

Avalon Digital Marketing Systems, headquartered in Provo, Utah, is a leading
provider of email marketing management software and strategic digital marketing
services. Avalon combines a proprietary technology platform with best-in-class
agency services to deliver premier digital marketing results to its clients. The
proprietary Point Blank(TM) email marketing software combines campaign, list,
and asset management features with robust email delivery, tracking, and
reporting to allow companies to design, execute, and analyze email marketing
communications. Utilizing a web-based application service provider (ASP) model,
Point Blank provides a cost-effective, simple-to-use solution and is easily
implemented for large enterprises or large distributed network organizations.
Avalon's services include a wide range of digital media creation, brand
development, and collateral design, as well as data acquisition and other media
services. Avalon has been a pioneer of email marketing technology since 1999.
For more information, visit www.avaloninc.com.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. The statements reflect
management's current expectations. However, actual results could differ
materially as a result of unknown risks and uncertainties, including but not
limited to, risks and other factors set forth in Avalon's most recent annual
report and other filings with the Securities and Exchange Commission. Avalon
assumes no obligation to update the forward-looking information contained in
this press release.


Contact Information:
Avalon Digital Marketing Systems, Inc.
Matt Greene Tel: 801-225-7073
mgreene@avaloninc.com