Digital Island Announces President Leo Spiegel Departs to Pursue Venture Capital Career.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 12, 2001

Digital Island, Inc. (Nasdaq:ISLD), the leading provider of managed Internet infrastructure services, announced today the departure of its president, Leo Spiegel, who is joining the San Diego, Calif., based venture capital firm Mission Ventures.

Digital Island's senior management team, led by Chief Executive Officer and Chairman Ruann F. Ernst, recently added Charles Picasso as chief operating officer, with responsibility for day-to-day operations. Ernst will assume the title of president.

Although Spiegel is relinquishing his management role and membership on the company's board of directors, he will remain involved with Digital Island as the new chairman of its Strategic Advisory Board, a group of industry and technology leaders who provide counsel on strategic and technology direction. For the past year Spiegel focused on working with key customers and partners, as well as on corporate development.

Spiegel's role in corporate development is being assumed by Vice President Chris Albinson, who is being promoted to chief strategy officer reporting directly to Ernst. Albinson led Digital Island's merger with Sandpiper Networks and acquisitions of Live On Line and SoftAware, as well as its strategic alliances with Compaq, Intel, and Microsoft and with Sun and Inktomi.

"I'm sad to leave this wonderful company and its great people," said Spiegel, "but this is a point in my life when it's important to spend time closer to my family in San Diego. Also, as Digital Island matures, it's less in need of the start-up counsel that I can now share with some much earlier-stage companies. I remain confident in both the strategy and management team of Digital Island and look forward to working together in my new capacity as the chairman of the strategic advisory board."

"We will miss Leo's tremendous drive and enthusiasm," said Ernst. "I've personally enjoyed our close working relationship over the past year. In that time, we have added depth to the management team and throughout the entire organization. Digital Island continues to improve its penetration of target markets like financial services, media and entertainment, and hi-tech as well as execute on its overall growth plan."

Digital Island(R) is the leading provider of managed Internet infrastructure for enterprises that need to give their customers a great Web experience in order to drive e-Business transactions. The company integrates managed hosting, content delivery and network services to bypass Internet congestion and guarantee fast and relevant interactions. Digital Island is headquartered in San Francisco, and its global e-Business delivery network reaches 33 countries. www.digitalisland.net.

Note to Editors: Digital Island is a registered trademark of Digital Island, Inc.

This press release contains information about the plans, objectives and expectations of the management of the Company that may constitute forward-looking statements. Important factors which could cause actual results to differ materially from those in the forward-looking statements, include but are not limited to: the operational difficulty of developing, deploying and delivering the Company's complex range of products and services; the potential lack of market acceptance of such products and services; competition from presently existing and new competitors; the risks associated with international operations and expansion; delays in raising or the unavailability of additional capital to fund operating losses and capital investment, the possibility of decreased growth in demand for Internet services in general and other factors detailed in the Company's periodic filings with the Securities and Exchange Commission. The Company assumes no duty to update information contained in this press release.