Digital Impact Signs More Than 40 New Clients During Fall Quarter; Digital Impact Delivers Scientific eMarketing Solutions to Expanded Network of Name Brand Clients.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 6, 2000

Digital Impact, Inc., the company that brings science to eMarketing, today reported strong growth in new clients during the fall quarter. Since September 1999, more than 40 name brand businesses selected Digital Impact's eMarketing services, including Dell Computer Corporation, Evite, living.com, Publishers Clearing House, REI, Restoration Hardware and TravelSmith.

This level of adoption by name brand companies reflects Digital Impact's focus on rigorous scientific eMarketing methods and relationship building practices. Digital Impact's sophisticated targeting, tracking and reporting capabilities enable marketers to send personalized messages to their customers and track results at the individual level. Targeting the right message to the right customer at the right time yields results.

"In the rapidly expanding world of online marketing, our rigorous scientific approach provides businesses with tangible results. We help companies utilize email marketing to strengthen brand loyalty and drive e-commerce sales," said William Park, chairman and chief executive officer of Digital Impact. "Digital Impact clients have reported triple-digit returns on investment for their email marketing campaigns. We are experiencing increased demand for our services as marketers realize the potential of using email to strengthen customer relationships."

"Digital Impact helps us leverage email as a relationship building tool with our customers," said Dan Isaacs, customer relationship marketing manager for living.com. "Digital Impact's sound execution of email campaigns and timely tracking and testing mechanisms provide us with amazing results that help drive our bottom line."

"Digital Impact plays a key role in our delivery of html email newsletters to our user base," said John McDonald, director of brand marketing for Evite. "We selected Digital Impact for its premium client services and overall eMarketing expertise based on the company's successful delivery of millions of emails for premier name brand companies. Our customers enjoy the graphically rich content and we look forward to further targeting our eMarketing programs to build valuable relationships with our customer base."

About Digital Impact, Inc.

Digital Impact, Inc. (NASDAQ:DIGI) offers Internet direct marketing, or eMarketing, services to businesses that wish to communicate more effectively online with their customers through email. Digital Impact combines proprietary technologies, rigorous business processes and expertise developed over thousands of email campaigns to provide a comprehensive, outsourced eMarketing solution. The services Digital Impact provides are designed to maximize its clients' return on their marketing investment. Digital Impact is a member of both the TRUSTe Privacy Program and CAUCE, the Coalition Against Unsolicited Commercial Email, and works only with companies which are advocates of strict consumer privacy guidelines. Digital Impact was founded in 1997 and is headquartered in San Mateo, California.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected, including the risk that Digital Impact's suite of eMarketing services will not benefit Digital Impact's clients and their customers as currently expected.

Note to editors: Digital Impact and Merchant Mail are trademarks of Digital Impact, Inc. All other brands or trademarks are the property of their respective owners.