Exhibit 99.1

  Digital River Partners with Microsoft to Provide Global E-Commerce
               Operations for Popular Microsoft Products

        Includes upcoming 2007 Microsoft Office system products


    MINNEAPOLIS--(BUSINESS WIRE)--Oct. 26, 2006--Digital River, Inc.
(NASDAQ:DRIV), a global leader in e-commerce outsourcing, today
announced a three-year agreement with Microsoft Corp. to build, host
and manage e-commerce stores to support the direct and indirect online
sale, marketing and delivery of popular downloadable Microsoft
software products, including its personal finance and Microsoft(R)
Office programs. The global arrangement incorporates digital
fulfillment across multiple geographies, including North America,
Asia, Europe and Latin America.

    Digital River and Microsoft began investing in this long-term
project and building out the e-commerce infrastructure to support the
initiative in the spring of this year. Consumers can now start taking
advantage of the first online store to launch. This store features
Microsoft(R) Money, a personal finance software product line. Future
sites expected to launch during the next few months include global
online stores for upcoming 2007 Microsoft Office system products. In
addition, Digital River will continue to provide e-commerce services
and digital delivery of Windows compatible software
products through the Microsoft Windows Marketplace and Digital Locker.

    "We are excited to be working with Microsoft in helping the
company make deeper inroads into e-commerce channels," said Joel
Ronning, Digital River's CEO. "As Microsoft continues to make more of
its software available for online purchase, we are well-positioned and
prepared to create a global shopping experience that caters directly
to the needs and purchase preferences of its customer base."

    For the new sites, Digital River will provide e-commerce
activities, ranging from e-commerce transaction and payment
processing, to e-marketing, digital downloads, fraud prevention
services and multi-lingual customer support. Multiple purchase and
delivery options, which will vary from site-to-site, are set to offer
Microsoft customers even more conveniences when it comes to buying
software online. Select sites will feature 60-day trials and buy-now
downloads, OEM trial conversions and physical product fulfillment.

    "Microsoft is committed to enabling customers to purchase
Microsoft products any time, anywhere. With Digital River's e-commerce
expertise, global infrastructure and network of resellers, we look
forward to expanding the availability of our software via the
Internet," said Joe Peterson, corporate vice president, Market
Expansion Platform Group at Microsoft Corp. "Through the utilization
of the Windows Marketplace and other online channels, we will make it
easier and more convenient than ever before for customers to buy our
products in multiple countries and at multiple locations."

    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, such as statements
containing the words, "will," "plans," "intends," "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; the ability of
the Company to expand its relationship with Microsoft and support the
global online sale and digital delivery of a range of Microsoft
products; the market's acceptance of such offerings; and other risk
factors referenced in the Company's public filings with the Securities
and Exchange Commission.

    Digital River is a registered trademark of Digital River, Inc.
Microsoft is a registered trademark of Microsoft Corporation in the
United States and/or other countries. All other company and product
names are trademarks, registrations or copyrights of their respective
owners.

    CONTACT: Digital River, Inc.
             Media Contact:
             Gerri Dyrek, 952-253-8396
             Director, Public Relations
             publicrelations@digitalriver.com
             or
             Investor Relations Contact:
             Bob Kleiber, 952-540-3024
             Vice President, Investor Relations
             investorrelations@digitalriver.com