Digital Island Announces UBS Warburg as Customer of Integrated Hosting, Content Delivery and Professional Services Package.

Business Editors/High Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--June 12, 2000

Digital Island Helps Global Investment Bank Distribute

Timely Information Worldwide

Digital Island, Inc. (Nasdaq:ISLD), a leading Global e-Business Delivery Network, announced today that UBS Warburg has become a customer of its full suite of services including Footprint(TM) Content Delivery, hosting and professional services.

Digital Island's Footprint will become a key component of UBS Warburg's Investment Banking Online (IBOL) portal, which provides a single point of access to UBS Warburg's market-leading content, including research, analytics and online trading in over 60 countries via a single point of access.

"Digital Island has global reach combined with a high level of technical expertise, scalability and customer care, which helps UBS Warburg to provide a superior online experience for our clients around the world," said Joanne Rohde, managing director, information technology, at UBS Warburg. "Digital Island is an important partner in the development of our ongoing programs to provide secure, timely content to our clients via the web and real-time voice and video."

"UBS Warburg is a beneficiary of our vision for providing integrated services and technologies that help corporations focus on their core competencies without missing a beat in the adoption of new Internet opportunities," said Ruann F. Ernst, chairman and CEO of Digital Island. "Our Footprint Content Delivery Service will help UBS Warburg push static and streaming content to the edge of the network in order to provide a world-class online experience for the firm's clients."

In connection with the transaction, a UBS AG affiliate invested $15 million in Digital Island.

UBS Warburg is a business group of UBS AG (NYSE:UBS), a leading global financial services firms. UBS Warburg is a broad-based investment bank serving corporate, institutional and private clients worldwide. In the United States, UBS Warburg's securities activities are conducted through UBS Warburg LLC, a U.S.-registered broker-dealer. UBS Warburg is a truly global organization, offering market-leading advice, research, transaction execution and distribution across all regions and time zones. UBS Warburg is known for its franchise among major corporate, institutional, sovereign and onshore private clients worldwide. Headquartered in London, UBS Warburg employs more than 25,000 people around the world. UBS Warburg is located on the Internet at www.ubswarburg.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 24 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 more than 6,000 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 are subject to 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 possibility that 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.