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Digital Envoy Announces Strategic Alliance with Digital Island to Deliver Personalized, Accurate, Geo-Targeted Web Content to Internet Users Worldwide


ATLANTA, August 2, 2000 - Internet surfers worldwide will soon be able to receive more accurate, personalized and relevant web content, while maintaining their anonymity, as a result of the partnership of Digital Envoy, Inc., a leading Internet infrastructure company and Digital Island, Inc. (NASDAQ: ISLD), a leading Global e-Business Delivery Network.

Digital Envoy's patent-pending, country, regional, city-level and connection speed NetAcuityTM technology will be combined with Digital Island's TraceWareTM, creating an extremely accurate, real-time web content delivery solution offering the highest available level of detail about the geographical location and connection speed of Internet users.

This new combined technology will better enable online businesses to effectively serve appropriate web content and enhance their customers' online experience. Digital Envoy will sell the combined technology as a stand-alone product under its NetAcuity product line, beginning in August 2000. Digital Island will sell the combined technology as an integrated value-add service, called TraceWare 3.0, along with its hosting, content delivery and network services beginning fourth quarter of 2000.

Digital Envoy's NetAcuity technology allows Internet businesses to create and deliver locally relevant content to their users, without invading user privacy. For example, with NetAcuity, streaming media companies can deliver or restrict content and advertisements to specific geographic regions or metro-areas.

"We think Digital Envoy's NetAcuity technology is exciting because of its ability to allow us to deliver locally-relevant sports-related and other streaming content, while also restricting the delivery of content where it is not permissible due to contractual agreements or local laws," said Nancy Pingitore, VP of Business Development of Incanta, a leading company in the broadband music and video services industry.

"Our ability to integrate Digital Island's TraceWare technology into NetAcuity will enable Digital Envoy to provide our customers with the most advanced geographic intelligence solution on the market," said Sanjay Parekh, CEO of Digital Envoy, Inc. "We are looking forward to providing Digital Island with NetAcuity's enhanced local and regional geographic capabilities and collaborating on new technologies that will provide next generation dynamic tailoring and customization of content on the Internet."

"The combination of NetAcuity and TraceWare will create a formidable presence in the geo-targeting marketplace," said Rob Friedman, Chief Business Envoy of Digital Envoy. "Through this partnership, Digital Envoy's NetAcuity technology really will be making web sites smart."

"Digital Island's partnership with Digital Envoy extends the value of our service offerings by enhancing the geographic intelligence pioneered by TraceWare," said Tim Wilson, vice president of marketing for Digital Island. "As a result, Digital Island and Digital Envoy are delivering much more accurate, intelligent, and personalized content through this strategic alliance."

About Digital Envoy

Digital Envoy is a global Internet infrastructure company focused on providing geo-targeting, connection speed tailoring and personalization solutions to Web content providers toallow their users more customized and relevant experiences, while maintaining user privacy. Digital Envoy is headquartered in Atlanta, Georgia and has an office in San Francisco, California.

About Digital Island

Digital Island® is a leading Global e-Business Delivery Network using hosting, content delivery, networking and application services to help companies improve their customers' online experience by making Web applications run faster and more reliably and scale globally, resulting in more successful e-Business transactions. Digital Island is headquartered in San Francisco with a presence in 25 countries.

Digital Envoy, NetAcuity and "we make web sites smart" are trademarks of Digital Envoy, Inc. All other trademarks are properties of their respective owners.

This release may contain forward-looking statements that are subject to risks and uncertainties. Important factors which could cause actual results to differ materially from those in the forward-looking statements, include but are not limited to: the company's short operating history which makes it difficult to predict its future results of operations; the company's history of operating losses and expected future losses which could impede its ability to address the risks and difficulties encountered by companies in new and rapidly evolving markets; the company's future operating results could fluctuate which may cause volatility or a decline in the price of the company's stock; the possibility that the company may not be able to price its services above the overall cost of bandwidth causing its financial results to suffer; and other factors detailed in the Company's filings with the Securities and Exchange Commission.