Exhibit 99.1

Digital River Announces Completion of Internal Review of Stock Option Grants

  Company to Record $9.4 Million Charge Spread Over Nine Year Period
                           from 1998 to 2006


    MINNEAPOLIS--(BUSINESS WIRE)--Feb. 6, 2007--Digital River, Inc.
(NASDAQ:DRIV), a global leader in e-commerce outsourcing, announced
today the substantial completion of its internal investigation of the
company's historical stock option grant practices. The comprehensive
investigation has been conducted by a Special Committee appointed by
the company's Board of Directors with the assistance of outside legal
counsel and forensic accounting experts.

    As a result of the investigation, the company will record non-cash
stock-based compensation expense and related tax effects in the
aggregate amount of approximately $9.4 million, after tax, spread over
the nine year period from 1998 through 2006. None of the expense
relates to option grants to the current Board of Directors and
executive officers. The investigation revealed no evidence that any
officer or director of the company engaged in any wrongdoing for
personal enrichment. The investigation also found that no director or
member of the committee charged with awarding stock options to
employees knowingly failed to comply with the relevant accounting
principles.

    The Special Committee identified circumstances where documentation
of certain grants was lacking. The Committee also determined that the
company misapplied GAAP by using incorrect measurement dates for
financial accounting and reporting purposes on a number of occasions.
Approximately 99.7 percent of the expense related to grants made prior
to December 31, 2002.

    The impact for the three most recent fiscal years is expected to
be as follows:

    --  For fiscal year 2006, approximately $85,000 of stock-based
        compensation expense, after tax, recorded in the company's
        fourth fiscal quarter;

    --  For fiscal year 2005, a benefit of approximately $2.2 million
        will be recorded. This is the result of approximately $2.5
        million in cumulative tax benefit for the periods from 1998
        through 2005 that will be recorded in 2005, offset by
        stock-based compensation expense of approximately $300,000;
        and

    --  For fiscal year 2004, approximately $817,000 of stock-based
        compensation expense will be recorded.

    The adjustments related to 2005 will be reflected via restatement
in the company's 2006 fourth quarter earnings release scheduled for
February 8, 2007. Disclosure related to the investigation and the
impact on prior fiscal years will be included in the company's annual
report on Form 10-K for the period ended December 31, 2006, which is
expected to be filed on a timely basis on or before March 1, 2007.
Because of the foregoing stock-based compensation charges, the
financial information and opinions of the company's registered
independent public accounting firms contained in previously filed
reports for the years 2005 and prior should no longer be relied upon.

    The company continues to cooperate with the Securities and
Exchange Commission's informal inquiry related to this matter.

    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; potential consequences surrounding findings of our ongoing
internal investigation, investigation by a committee of our
independent directors and informal SEC inquiry into our stock option
granting practices; any potential civil litigation relating to our
stock option granting practices; competition in the electronic
commerce market; 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. All
other company and product names are trademarks, registrations or
copyrights of their respective owners.

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