Digital Domain Media Group Pursues Strategic Alternatives To Maximize Shareholder Value

Digital Domain Media Group, Inc. (NYSE: DDMG) today clarified remarks regarding shareholder value strategies made during its July 18, 2012, investor call. The company is formally announcing its plans to evaluate a broad range of strategic and financial alternatives to support the company’s growth initiatives and its efforts to maximize shareholder value. DDMG will engage in discussions with various parties that have contacted the company on an unsolicited basis. The company will also work with its investment bankers and advisors to pursue strategies, and develop relationships, with segment-specific capital sources and strategic partners that have a desire to support the growth initiatives and maximize the shareholder value contribution of the company’s specific business segments.

The company will evaluate a variety of alternatives including, but not limited to, a strategic minority investment in the company or in a specific business segment, joint ventures and/or business combinations with strategic partners and industry participants, the sale or spin-off of certain of the company’s assets or operating subsidiaries into publicly traded or privately held corporations, the outright sale of certain of the company’s assets or operating subsidiaries, or the outright sale of the company. DDMG also intends to be responsive to proposals received that seek to maximize the value of major operating subsidiaries through spin-offs into, or combinations with, publicly traded companies listed on major foreign exchanges that reflect the company’s previously announced international expansion plans.

“While we see our businesses as driven and inspired by the fabric of our high-level digital visual effects capability, we do not believe that the market value of our company reflects the sum of its parts,” said John Textor, CEO and chairman of DDMG. “We are pleased to formalize a process to pursue our most attractive strategic alternatives in recognition both of unsolicited expressions of interest as well our own belief that a focus on the opportunities and valuations of our individual business segments may provide a more compelling argument for a greater total company valuation and shareholder value. We continue to believe strongly in a business model that focuses on the pursuit of lucrative new business opportunities that are inspired by our award winning visual effects business. However, it does seem clear that a plan to align capital and strategic partnerships directly with areas of interest and expertise will be more effective in supporting the growth and value of our individual businesses.”

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