SOURCE: DG

DG

May 05, 2011 07:00 ET

DG Announces $50 Million Stock Repurchase Program

Authorization Follows Completion of $30 Million Program

DALLAS, TX--(Marketwire - May 5, 2011) - DG® (NASDAQ: DGIT), a leading provider of digital media services to the advertising, entertainment and broadcast industries, today announced that its Board of Directors has approved a stock repurchase program authorizing the Company to purchase up to $50 million of its common stock.

The company recently completed a $30 million authorization, repurchasing 1.1 million shares of its common shares at an average price of $26.50 since September 2010.

"We believe using a portion of the Company's free cash flow for a stock buyback is prudent," said Scott K. Ginsburg, Chairman and CEO of DG. "Further, we believe this additional $50 million mandate, coming immediately after exhausting the original $30 million program, demonstrates the Board's confidence in DG's future."

Purchases under the repurchase program may be made in open market or unsolicited negotiated transactions and are expected to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing of purchases and the exact number of shares to be purchased will depend upon market conditions. The repurchase program does not require the Company to acquire a specific number of shares, and the repurchase program may be suspended from time to time or discontinued at any time. The cost of the shares that are repurchased will be funded from available working capital. Any shares repurchased under the program will be returned to the status of authorized but unissued shares of common stock.

Forward-Looking Statements

This release contains forward-looking statements relating to the Company. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Such risks and uncertainties include the Company's ability to integrate recent acquisitions and other risks relating to DG's business which are set forth in the Company's filings with the Securities and Exchange Commission. DG assumes no obligation to publicly update or revise any forward-looking statements.

About DG
DG FastChannel®, Inc.
(now known as DG) provides innovative technology-based solutions to the advertising, broadcast and publishing industries. The Company serves more than 5,000 advertisers and agencies through a media distribution network of more than 28,000 radio, television, print and Web publishing destinations throughout the United States, Canada and Europe. DG utilizes satellite and internet transmission technologies, creative and production resources, digital asset management and syndication services that enable advertisers and agencies to work faster, smarter and more competitively. Through its MIJO, Unicast, SourceEcreative, Treehouse and Springbox operating units, DG extends its benchmark of excellence to a wide roster of services ranging from custom rich media solutions and interactive marketing to direct response marketing and global creative intelligence. For more information, visit www.DGit.com.

Contact Information

  • For more information contact:
    Omar Choucair
    Chief Financial Officer
    DG FastChannel, Inc.
    972/581-2000

    JoAnn Horne
    Market Street Partners
    415/445-3233