Datalink Reports 2006 Fourth-Quarter and Year End Operating Results.

Full Year 2006 Sales Rise 25 Percent over 2005; Full Year 2006 Net Earnings Increase to $8.5 million or $.76 per Share (Includes a Net Tax Benefit)

MINNEAPOLIS -- Datalink Corporation (Nasdaq:DTLK), a leading independent information storage architect, reported that revenues for the quarter ended December 31, 2006, rose 8 percent to $38.7 million from $35.9 million for the prior-year period. The company reported net earnings of $4.4 million, or $.38 per diluted share, compared to net earnings of $1 million or $.10 per diluted share in the 2005 fourth quarter.

For 2006, the company reported revenues of $146 million, a 25 percent increase over revenues of $117.1 million in 2005. Net earnings for 2006 were $8.5 million, or $.76 per diluted share, compared to a net loss of $2.9 million, or $.28 per diluted share for 2005.

Both 2006 and 2005 contain significant unusual charges. Net income for the fourth quarter and year ended December 31, 2006, includes a tax benefit of $2.2 million or $.19 per diluted share resulting principally from the reversal of the company's income tax valuation allowance. The net loss in the year ended December 31, 2005, included the previously announced non-cash charge of $3.5 million, or $.34 per diluted share, related to subleasing a portion of the company's corporate headquarters facility. Excluding these unusual charges, fourth quarter 2006 net income was $2.2 million or $.19 per diluted share compared to $1 million or $.10 per fully diluted share in the fourth quarter of 2005. Net income for the year ended December 31, 2006, was $6.3 million or $.57 per diluted share compared $587,000 or $.06 per fully diluted share for the year ended December 31, 2005. As a result of reversing the income tax valuation allowance, in future quarters of earnings Datalink will provide an income tax provision.

Charlie Westling, Datalink's president and CEO, commented, "We are pleased to report continued strong performance in 2006. Datalink accomplished the strategic initiatives we set for ourselves at the beginning of the year: to increase productivity, deliver storage solutions and professional services more effectively and strengthen our resources in key geographic locations."

According to Westling, the company's accomplishments included:

* Seven consecutive quarters of profitability and ten consecutive quarters of year-over-year revenue growth.

* Highest level of annual services revenue and services gross profit in the company's history.

* A strong year-over-year improvement in operating margin to 3.8% versus 0.2% in the prior year period.

* Growing success in delivering value added solutions to enterprise class customers, with 26 customers each generating over $1 million of revenue during 2006, compared to 20 customers in 2005.

* A solid backlog of approximately $20 million entering the first quarter of 2007.

Last week Datalink announced the acquisition of Midrange Computer Solutions, Inc. (MCSI), a leading solutions provider. MCSI provides consulting, storage solutions and services to a large base of U.S. customers in financial services, communications, healthcare and manufacturing. With the acquisition of MCSI, Datalink's revenue base increases by approximately one-third and expands the number of enterprise customers served. The acquisition also extends Datalink's market presence throughout the United States, a key strategy for further growth.

Westling continued, "We believe that we can build off of our strong performance in 2006 and continue our profitable growth this year by executing our key initiatives." According to Westling, the company is focused on:

* Successfully integrating MCSI;

* Continuing to increase employee productivity by leveraging investments in field and customer support areas;

* Further penetrating the enterprise customer base;

* Targeting high growth market segments and deploying new technologies; and

* Delivering greater value to customers through solutions and services.

Outlook

Because Datalink is in the very early stages of the integration of MCSI, the company will not be providing first quarter guidance at this time. Datalink believes that the acquisition will add approximately $40 million to revenues in 2007 and will be accretive to net earnings by approximately $.02 to $.04 per share excluding non-recurring charges and the amortization of intangibles. Datalink expects to resume our practice of providing quarterly guidance in the second quarter.

Conference Call and Webcast Today

Datalink will hold a conference call today at 9:30 a.m. Central Time to discuss the fourth quarter and year end results. Those wishing to participate can access the call by dialing [phone] (no later than 9:25 a.m. Central Time). Participants will be asked to identify the Datalink conference call and provide the designated identification number (6246813). A live webcast of the conference call can be heard via Datalink's website at www.datalink.com.

Datalink Corporation is an information storage architect. The company analyzes, designs, implements and supports information storage infrastructures that store, protect and provide continuous access to information. Datalink's specialized capabilities and solutions span storage area networks, network-attached storage, direct-attached storage and IP-based storage, using industry-leading hardware, software and technical services.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. This press release contains forward-looking statements, including our internal projections of anticipated 2007 results, which reflect our views regarding future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties, including those identified below, which could cause actual results to differ materially from historical results or those anticipated. The words "aim, "believe," "expect," "anticipate," "intend," "estimate" and other expressions which indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending upon a variety of factors, including, but not limited to: the level of continuing demand for storage, including the effects of economic conditions; competition and pricing pressures and timing of our installations that may adversely affect our revenues and profits; fixed employment costs that may impact profitability if we suffer revenue shortfalls; revenue recognition policies that may unpredictably defer reporting of our revenues; our ability to hire and retain key technical and sales personnel; our dependence on key suppliers; our ability to adapt to rapid technological change; risks associated with integrating our MCSI acquisition and possible future acquisitions; fluctuations in our quarterly operating results; future changes in applicable accounting rules; and volatility in our stock price. We may not achieve significant future revenues from one of our customers that accounted for approximately 14 percent of our 2006 revenues. Further, our revenues for any particular quarter are not necessarily reflected by our backlog of contracted orders, which also may fluctuate unpredictably. In addition, we cannot assure that we will successfully and profitably integrate MCSI's customers and personnel into our business.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]