Wednesday, July 16, 2008

Stock Alert Update

DigitalPost (OTCBB: DGLP)

News Released Pre-Market Open

 DigitalPost Interactive Announces Q2 2008 Corporate Update

Company Maintains Continued Growth with Strategic New Partnerships and Strong Customer Loyalty

Today’s announcement from DigitalPost reveals some fantastic data and news.  We strongly suggest all members review the press release that is included below.  We maintain that DGLP continues to trade at extremely low prices, and suggest members absorb the information included in this update.

Note:  Green Baron members have been asking us to quantify some of the numbers we foresee coming to DigitalPost based on hard data.  It is always difficult to predict revenue and earnings in the future, but we will try to show you a conservative example based on what we have.  Today’s PR gives us a great deal to get excited about.

Let’s take the Kiddie Kandids partnership as an example.  We estimate that Kiddie Kandids will conduct about 1,000,000 portrait sittings each year with the help of its exclusive deal with Babies R Us.  Once the Kiddie Kandids / DigitalPost partnership goes live (estimated to begin early in Q4 2008), each person involved in every portrait sitting will be offered a free website similar to the one that customers now try at TheFamilyPost.com for two weeks. 

In today’s press release, it was announced that more than 87% of all customers who tried its digital media sharing platform free for two weeks upgraded to a paid subscription during the first half of 2008.  We don’t expect 87% of all people to convert to paid accounts through the Kiddie Kandids partnership, but we would expect at least 20% will.  At an average of $8 per month on 200,000 new accounts, the partnership would see $1,600,000 per month of revenue, or $19.2 million per year.  This number does not include other products sales and orders from these customers. Revenues are expected to essentially be split between the two companies.

In conclusion, we estimate the DigitalPost will be able to see at least $10 million per year of revenue based on the Kiddie Kandids partnership alone.  Since margins are extremely high, we believe DGLP could show at least half this number in earnings.  The bottom line would give DGLP about .10 per share in earnings per year before taxes with the current share structure.  At the current price of .14 per share, we believe DGLP is an absolute steal.

IRVINE, CA,  July 17, 2008 – DigitalPost Interactive (OTCBB: DGLP) (www.dglp.com), a leader in the digital media-sharing and social networking space, announced today that the company continues on a path of positive growth, fueled by strategic new partnerships, more efficient marketing efforts, and strong conversion rates for its subscription-based digital media-sharing platform. In all:

• More than 87% of all consumers who tried its digital media-sharing platform free for 2 weeks upgraded to a paid subscription during the first half of 2008;
• Direct search engine advertising costs required to attain those customers in Q1 and Q2 2008 dropped by more than 20% over the same period the year before;
• Paid subscriptions more than doubled in Q1 and Q2 in 2008 over 2007, for a total of more than 5,500 paid subscriptions sold to date;
• And the company is now embarking on what’s expected to be its largest, strategic partnerships to date with companies such as Kiddie Kandids (Top 5 national portrait studio chain), Mitsubishi (global photo kiosk provider), and Westgate Resorts (world’s 3^rd largest timeshare company)

“We’re now experiencing significant growth in every aspect of our business as we continue to refine and enhance our user-friendly platform,” said Michael Sawtell, CEO, DigitalPost Interactive. “With this kind of consumer response and with our most exciting partnerships set to launch in the next two quarters, we’re well-positioned to accelerate this growth for the remainder of 2008.”

Since launching TheFamilyPost.com in November 2005, DigitalPost Interactive has remained focused on strategic growth by re-branding its award-winning digital media-sharing platform for large companies who can benefit from its customer-retentive, subscription-based services that can drive substantial recurring revenues with little cost or IT effort. Already this year, the company has deployed partnerships with organizations such as www.DogChannel.com, and www.WebsitesForHeroes.com which serves military families around the globe, and has been heralded as “an absolute godsend’ and “the most user-friendly and accessible point of connection on the Web” by the Navy’s “Lifelines” program.

“We’re extremely encouraged by how our platform has been received in the marketplace,” commented Michael Sawtell, CEO, DigitalPost Interactive. “PC Magazine has called our platform one of the top 10 applications to preserve memories on the Internet, and we continue to convert the vast majority of free trials into paid subscriptions. We’ve made it our mission to offer the best digital-media sharing experience on the web, and families are clearly responding. We are looking forward to what we believe will be our largest launches yet as Westgate Resorts and Kiddie Kandids begin offering subscriptions directly to their customers in the portrait and vacation markets later this quarter.”

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 sites TheFamilyPost.com and WebsitesForHeroes.com, please visit www.dglp.com.

Contact DigitalPost Interactive:

Media Relations:

Mike Maloney

Ph: 714-824-3009

mmaloney@digitalpostinteractive.com

or

Investor Relations:

Ph: 949-544-1392