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Alex Meruelo Responds To Recent Announcements By Digital Generation, Inc.

LOS ANGELES, July 16, 2013 /PRNewswire/ -- Alex Meruelo and Meruelo Investment Partners LLC today issued the following statement regarding Digital Generation, Inc. (Nasdaq: DGIT) ("DG," "Company"):

Alex Meruelo, Meruelo Investment Partners LLC together with related entities ("Meruelo") are the largest stockholders of DG with beneficial ownership exceeding 14%. Recently, the DG board of directors (the "Board") announced certain corporate governance changes along with the date of the Company's 2013 annual stockholder meeting. With a strong commitment to DG, and an unwavering focus on maximizing value for all stockholders, Meruelo strongly urges the Board to take further actions to improve the performance of the Company through changes to the composition of the Board, and to implement further corporate governance changes.

Pushed by our previous actions, two independent directors were added at the 2012 annual stockholders meeting.  And, as a result of our continued pressure, the Board now proposes to institute an independent chair, and a delayed process to declassify the Board over a two year period following the 2013 annual meeting. 

However, Meruelo does not believe that these steps are enough to address the urgent problems which significantly disadvantage DG's performance.

As Meruelo has shared in numerous discussions with the Board and management in the last several months, Meruelo believes that the composition of the Board continues to be a primary cause of DG's underperformance.  Certain members of the Board were responsible for approving excessive compensation for DG's executive chair, and adopting a poorly run (and ultimately failed) strategic review process that disrupted DG's business and operations. 

The Board continues to represent a reputational hazard for the Company, continues to take actions that undermine the operational and strategic plans that management seeks to implement, and has failed to address the significant short position in this stock.

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