November 24, 2008 06:30 ET

DigitalPost Interactive Reports Q3 2008 Financial Results

Company Surpasses 10,000 Subscription Sales, Increasing Previous Total by 100% Within Weeks of Kiddie Kandids Launch

IRVINE, CA--(Marketwire - November 24, 2008) - DigitalPost Interactive (OTCBB: DGLP) (www.dglp.com), a leader in the digital media-sharing space, reported its financial results for the third quarter 2008.

"The company has taken a positive turn toward profitability as we begin rolling out new B2B partnerships while simultaneously streamlining our operations," said Michael Sawtell, CEO, DigitalPost Interactive. "We reduced both our net loss and operating expenses by over 40% over last quarter and with our Kiddie Kandids partnership now having been launched in the fourth quarter and adding thousands of new subscriptions a month, we expect to see positive growth to our subscription revenues beginning in the fourth quarter and well into 2009. With our efforts in reducing our operating expenses combined with our expected subscription revenue growth, we see ourselves moving in a positive financial direction."

Third Quarter Financial and Recent Highlights:

--  Launched Kiddie Kandids Partnership -- We recently partnered with
    Kiddie Kandids, the largest, national children's portrait studio chain (187
    Studios in the USA) to develop a digital media-sharing service called
    www.OurFamilyLife.com for the numerous customers around the country they
    serve every year. The service provides a unique customer experience, giving
    families the ability to share their personal digital media alongside
    professional portraits in a customizable destination site online. This
    service launched on October 1st, 2008, and has helped DigitalPost increase
    its entire subscription base by 5,300 in just 6 weeks for a record amount
    of 10,000 total to date.
    
--  Stable Revenues -- Revenues for the three months ended Sept 30, 2008
    were $142,700, consistent with the previous quarter revenues of $144,200.
    Year over year, Q3 revenues grew from $36,300 in 2007, to $142,700, a rise
    of more than 293%. "In the midst of these challenging economic times, we
    are satisfied to show stable revenues for the third quarter, knowing that
    the launch with Kiddie Kandids is expected to yield positive growth to our
    fourth quarter subscriber revenue," said Sawtell.
    
--  Reduced Losses -- Total net loss per quarter reduced to $883,800
    during the three months ended September 30, 2008, from $1,473,700 during
    the three months ended June 30, 2008, a reduction of more than 40%.
    
--  Improved cash used in operations -- Cash used by operating activities
    decreased to $1,152,200 for the nine months ended September 30, 2008, as
    compared to $1,270,100 during the same period last year showing an
    improvement of 9%. "With our recent streamlining of operations in the
    fourth quarter combined with the expected growth in subscribers from our
    recent launch with Kiddie Kandids, we expect cash flow to improve in the
    coming months," said Sawtell.
    
--  Financing -- During the third quarter 2008, we closed on over $430,000
    in private debt and equity financing, of which $100,000 was invested by the
    Chief Executive and Chief Financial Officers. "We are confident in our
    business model, with Kiddie Kandids being an example of a successful B2B
    implementation," said Sawtell.
    
--  Interactive Family Tree and Photo Editor Deployed -- We launched
    several new features to our digital media-sharing platform, including a
    built-in photo editor called Qwik-Edit(SM), and we developed a new family
    tree, Qwik-Tree(SM) that was beta launched in October 2008. We anticipate
    the launch of our Version 5.0 of our Digital Media Sharing Platform
    sometime in the fourth quarter of 2008.
    

About DigitalPost Interactive

DigitalPost Interactive is a SaaS (Software as a Service) and application provider that delivers B2B and B2C digital media-sharing solutions that are both easy to offer and easy to use. The company's visually-stunning, user-friendly Web 2.0 technology gives consumers a single, engaging place online for permanently storing and sharing a lifetime of digital media and memories, connecting with family and friends, and keeping organized in today's digital world.

Completely scaleable and re-brandable, DigitalPost Interactive's technology gives companies in the photo, travel, entertainment, sports, and other vertical markets a fast and efficient way to offer dynamic Web 2.0 products and services. This technology can create exciting new revenue streams for all companies looking to monetize this emerging new Internet opportunity. For more information about DigitalPost Interactive or its consumer site www.TheFamilyPost.com, please visit www.dglp.com.

Any forward-looking statement in this press release is made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors, technological developments, regulatory matters and increased competition. The company disclaims any obligation to update any such factors or to publicly announce results of any revisions to the forward-looking statements contained herein to reflect future events or developments.