EX-99.1

EX-99.1

Press Release Source: Digicorp, Inc.

Digicorp Sub-Licenses Video Library to Focus on Online Media
and Advertising

Monday January 14th, 2008

Enters into Letter of Intent with China Youth Net to Create
Media Portal

MARINA DEL REY, Calif., Jan. 14th, 2008 (BUSINESS WIRE) --
Digicorp, Inc. (OTC BB: DGCO - News) announced today that
its subsidiary Rebel Crew Films has licensed the DVD
distribution rights to its Spanish language film library to
Westlake Entertainment, Inc. ("Westlake"), an independent
entertainment distribution company in operation for 14
years. The licensing agreement is part of an initiative to
focus Digicorp's efforts on commercialization of its patent
pending ViraCast advertising technology and associated
business opportunities in the US and internationally.

Effective immediately, Westlake will take over sales,
production and all physical distribution of the 157 title
library, while Digicorp will continue to manage digital
distribution and advertising rights. Westlake will
distribute existing inventory for a fee and will distribute
new product on a revenue share basis.

"The Rebel Crew library is an ideal match for our
capabilities," commented Luke Stefanko, Westlake's
President. Larry Cohen, Westlake partner, added, "We intend
to introduce these titles to a broader range of North
America's top retailers and provide access to a much wider
audience." As a result of this agreement, Rebel Crew Films
expects to eliminate most of its distribution overhead
within the first quarter of 2008 while maintaining a revenue
stream from library sales.

Digicorp today also announced execution of a letter of
intent (LOI) with China Youth Net (CYN) and China based
Internet company WKC to build, launch and operate a large
scale advertising supported Internet media portal in China.
The LOI provides for the new venture to retain the exclusive
rights to serve international content via a peer-to-peer
portal to China's student population of more than 70 million
young people, ranging from eighth grade through university.
Under the auspices of CYN, the new portal will comply with
recent regulations instituted by the Chinese government that
restrict online video sites. Under this new policy,
websites that provide video programming or allow users to
upload video must obtain government permits, and applicants
must be either state-owned or state-controlled companies.

The LOI calls for the three parties to have equal ownership
of the new venture and for the venture to have its own
dedicated management team. The LOI requires that Digicorp
contribute the exclusive China rights to its ViraCast
technology and that CYN assist fully in the protection of
the venture's intellectual property rights. CYN has also
agreed to market the portal to its 70 million members via
its 52 websites and student database of email addresses and
mobile phone numbers. WKC will primarily be responsible for
operations in China.

The LOI contemplates the raising of certain financing for
the new venture. At this stage, no funding has been
committed and there can be no assurances that funding will
be secured. In addition, should the parties fail to execute
a definitive agreement within one year, the LOI will
terminate unless extended by the parties.

About Digicorp, Inc.

Digicorp is a technology company whose business is to
develop and deploy highly scalable and cost effective
advertising software throughout the digital media
experience. ViraCast, a Digicorp registered trademark, is
patent pending, enterprise software capable of sourcing a
variety of global ad networks to dynamically insert and
track contextual, geo-targeted, interactive advertising in
downloadable media.

About Westlake Entertainment

Westlake Entertainment is a fully integrated, independent
entertainment distribution company primarily engaged in
licensing and distributing feature films and television
programs.

About China Youth Net

China Youth Net is a Chinese government agency which
regulates and manages the Internet for China's student
population of more than 70 million young people, ranging
from eighth grade through university.

About WKC

WKC is a China based company that is currently engaged in
various Internet businesses throughout mainland China,
including Junnet Omnimedia Inc., the foremost distributor of
online prepaid cards in China and a leading marketer of
digital products such as software, music titles, and games.

Forward-Looking Statements

This press release contains certain forward-looking
statements. These forward-looking statements can generally
be identified as such because the context of the statement
will include words such as Digicorp "expects," "should,"
"believes," "anticipates" or words of similar import.
Stockholders, potential investors and other readers are
cautioned that these forward-looking statements are
predictions based only on current information and
expectations that are inherently subject to risks and
uncertainties that could cause future events or results to
differ materially from those set forth or implied by the
forward-looking statements. Certain of those risks and
uncertainties are discussed in the Digicorp filings with the
Securities and Exchange Commission, including Digicorp
annual report on Form 10-KSB and quarterly reports on Form
10-QSB. These forward-looking statements are only made as of
the date of this press release and Digicorp does not
undertake any obligation to publicly update such forward-
looking statements to reflect subsequent events or
circumstances.

Contact:
Sophia Kim
Digicorp, Inc.
(310) 728-1457
info@DGCOinc.com
www.dgcoinc.com

Source: Digicorp, Inc.