Digital Island Announces AudioSoft As TraceWare Customer for Worldwide Digital Copyright Management.

Business Editors &High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 25, 2000

AudioSoft Uses Digital Island's Applications Services Software to

Track International Music Rights and Royalties on the Internet

Digital Island, Inc. (Nasdaq:ISLD), a leading global e-Business Delivery Network, announced today that AudioSoft is using TraceWare(TM) as part of its worldwide digital copyright management services for the music industry.

The challenge AudioSoft faces is that ownership and royalty schedules for a single musical composition can vary between countries. Digital Island's TraceWare, which determines with 96 percent accuracy in what country a request originated, helps AudioSoft identify where customers listen or download songs off the Internet to ensure the correct rights owners receive the appropriate royalty payments.

&uot;For copyright compliance, AudioSoft requires automated, rapid and verifiable identification of consumers' locations to record where they listened or downloaded music on the Internet,&uot; said Gary Ludlow, vice president and general manager at AudioSoft Americas. &uot;Digital Island's TraceWare helps us ensure that artists and owners of music rights worldwide receive the proper compensation for their creative work.&uot;

&uot;TraceWare helps companies in the rapidly changing music industry to handle global digital rights management and protect the privacy of consumers,&uot; said Ruann F. Ernst, chairman and CEO of Digital Island. &uot;Digital Island's geographically intelligent network services give AudioSoft the capabilities required to build confidence and brand loyalty with leading record companies and music distributors worldwide.&uot;

AudioSoft is the worldwide leader in global copyright management for music on the Internet, helping to assure accurate royalty redistribution to music copyright holders. The Company's copyright and data reporting system captures, organizes and delivers information about music usage on the Internet. A trusted third-party information source, AudioSoft provides accurate, real-time feedback and customized reports for labels, copyright collection societies, online music retailers and audio webcasters to automate the management of copyrights generated on the Internet and provide market feedback and analysis. The Company's data gathering architecture is designed to be compatible with all popular digital music file formats and major industry platforms. Founded in 1996, with corporate headquarters in San Francisco, California and European headquarters in Geneva, Switzerland. AudioSoft is a respected international authority on digital music rights. www.audiosoft.com.

Digital Island(R) is a leading global e-Business Delivery Network. The company's suite of application services for interactive e-Business allows customers and partners to readily integrate content delivery, hosting and intelligent networking to give the ultimate consumer a superior experience. Strategically located Data Centers in the United States, Europe and Asia are directly connected to leading access service providers in 23 countries. In addition, Digital Island operates a network of more than 1,200 content distributors across the Internet, which improves the performance and reduces the cost of hosting high-volume Web applications in target markets. This network is expected to grow to 5,000 content distributors in 350 locations worldwide by the year 2003. Digital Island is headquartered in San Francisco. www.digitalisland.net.

Note to Editors: Digital Island is a registered trademark of Digital Island, Inc. TraceWare is a trademark of Digital Island, Inc. All other trademarks are properties of their respective owners.

This release may contain forward-looking statements that involve 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 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 including its recent filing on Form S-1.