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Meet Digital River
At Digital River, we have a saying — “complexity is our friend.” With more than a decade in business and a base of more
than 40,000 clients, we have become experts in handling the complexities — all the behind-the-scene details — in running
a global online business. Each day, we focus our efforts on helping our clients aggressively pursue online shoppers, mar-
ket their products and win sales. At the same time, we take the risk out of opening and managing online stores that cater
to customers, cultures and tax laws worldwide. Our ability to deliver an end-to-end global e-commerce solution continues
to increase our recognition as a market leader.
2005 – A Year of Expansion
In 2005, Digital River expanded its business on many different fronts. During the year, we:
•Opened new offices in Taiwan and Japan. At the end of 2005, international markets accounted for 39 percent of
our sales, up from 31 percent in 2004;
•Launched and significantly expanded the Digital River oneNetwork™ marketplace. Today, Digital River operates at
the center of this global online marketplace as a trusted third-party — delivering digital products to more than
50,000 retailers and affiliates for resale, and managing transactions, downloads and payments;
•Grew the annual revenue generated through our Digital River marketForce™ strategic marketing services nearly
ten-fold compared to 2004. When we closed 2005, many key clients were using our core marketForce programs,
which include search-engine advertising and optimization, e-mail and managed affiliate marketing, digital rights
management and site optimization;
•Completed two acquisitions and an investment that will move us into new high-tech manufacturing and consumer
electronics markets, as well as extend the technologies behind our marketForce and enterprise license
management services; and
•Won new business with industry leaders, such as Adobe Systems Incorporated; Boston Acoustics, Inc.; CA Inc.;
Canon, Europa, N.V.; Microsoft Corp.; and SEGA of America, Inc.
LETTER TO THE SHAREHOLDERS
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