Digital Island Announces Tradepac.com as Customer of Global E-Business Delivery Network to Enable Fast Transactions.

Business Editors/Hi-Tech Writers

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

Asia-Pacific's First Online Auction and Inventory Procurement Site to Use Digital Island's TraceWare for Geographic Tracking of U.S.

and Asian Customers

Digital Island, Inc. (NASDAQ:ISLD), a leading global e-Business Delivery Network, announced today tradepac.com as a customer to ensure fast, guaranteed and secure transactions for U.S. and Asian companies as they source and liquidate excess inventory online.

Using Digital Island's TraceWare(TM), which determines with 96 percent accuracy in what country a request originated, tradepac.com is immediately identifying global trading opportunities by tracking the location of multinational corporations procuring inventory online. In addition to empowering tradepac.com with vital geographic intelligence, Digital Island's network services are enabling tradepac.com to ensure a fast, reliable and secure end-user experience.

"Digital Island has reached a new level of excellence for global players due to the resilience and reach of its intelligent network and ability to meet dramatic spikes in demand and ensure fast and reliable e-Business transactions 24x7," said Douglas Woodring, executive vice president of Strategic Alliances at tradepac.com. "We are excited to be one of the first customers in Hong Kong to use Digital Island's robust, reliable and extremely flexible services, including TraceWare, which is the perfect solution for tradepac.com to intelligently track where its clients are worldwide as they procure online."

"Digital Island's ability to pinpoint an end user's location with a high degree of accuracy while executing fast, reliable and secure transactions are crucial elements of a successful online procurement initiative," said Ruann F. Ernst, chairman and CEO of Digital Island. "The majority of manufacturers with just-in-time supply chains were stockpiling inventory before Y2K and tradepac.com needed to ensure a quick, secure response to the escalating number of trading requests before and after the millennium."

Tradepac.com is Asia-Pacific's first business-to-business inventory liquidation and procurement company operating via the Internet. tradepac.com offers global trading opportunities for buyers and sellers to liquidate and source excess inventory (as a result of cancelled orders, production over runs, bankruptcies, ex-season clearances, etc.) while providing full customer and marketing support. tradepac.com is a centralized electronic exchange for a wide range of first quality consumer products and general merchandise. Clients benefit from the extensive, cost effective networking power of the Internet by generating international contacts that were previously out of reach of their regular distribution networks. www.tradepac.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 22 countries. In addition, Digital Island operates more than 1,200 content distributors across the Internet, which improve the performance and reduce 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.

Important Notice

Digital Island is a registered 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.