Digital Island Successfully Completes Review of 2Way Web Services by Deloitte & Touche.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 23, 2001

Service Auditors' Report Provides Assurance That Online Transactions

Are Securely and Reliably Managed and Delivered by Digital Island

Digital Island, Inc., a Cable & Wireless company, (NYSE:CWP)(LSE:CW), today announced its 2Way Web Services(TM) have received the Statement on Auditing Standards No. 70 (SAS 70) Type II Service Auditors' Report from Deloitte & Touche LLP. The SAS 70 Type II report validates Digital Island's standards for physical and logical security systems of Digital Island's 2Way Web Services infrastructure, comprising its data centers, global IP backbone and 35-country content delivery network.

Digital Island is the first Web services provider to receive the SAS 70 Type II report for its entire portfolio of 2Transact(TM), 2Deliver(TM) and 2Manage(TM) services, which cover managed hosting, networking and content delivery service elements.

Many enterprises, especially within the financial services sector, require the SAS 70 Type II report to thoroughly evaluate Digital Island's systems, processes and controls critical to transact business with their online customers and to adhere to regulatory requirements for security and availability. Digital Island's 2Way Web Services support transactions of more than $1 billion a day for some of the world's largest financial institutions, including ABN AMRO, Dresdner Bank Group, E*Trade Group, J.P. Morgan Chase & Co., and UBS Warburg.

"SAS 70 certification is a critical tool for any company that deals with sensitive information, to prove that its security processes are as good as the company claims," said Octavio Marenzi, principal analyst for Celent Communications. "In financial services in particular, security is one of the top 10 CEO concerns. Digital Island is the first company to achieve this level of certification for both its content delivery and hosting network."

"Our financial services customers need to comply with strict regulatory security requirements for their information technology operations," said Paul Evenson, chief information officer, Digital Island. "The assessment of our business controls helps Digital Island confirm that its 2Way Web Services are a key tool for enterprises to increase their security, reliability and performance of their e-business operations. The SAS 70 Type II report provides credible evidence to banks, brokerage firms and insurance companies that the physical and logical security systems in place at Digital Island are operating effectively."

The SAS 70 report assesses the design and effectiveness of Digital Island's systems, processes and controls across its 2Way Web Services infrastructure and data centers. Surpassing the requirements of the Type I report, which defines and documents the existence of controls, the Type II report includes assessment and comprehensive testing of the effectiveness of the controls in operation, with respect to Digital Island's 2Way Web Services infrastructure and data centers. The review also tests and reports on physical and electronic security measures, disaster-recovery planning, network access and monitoring, environmental back-ups and network redundancies, change management, new-client implementation and customer service.

The customer benefits of having the SAS 70 Type II review are as follows:

-- Differentiates Digital Island as the only integrated solution provider for
hosting, network and content delivery services to successfully complete a SAS
70 Type II review.

-- Provides assurance to financial services customers that may be subject to
oversight by regulatory agencies in the countries in which they operate that
Digital Island meets their requirements.

-- Supports Digital Island's assertion that it provides a secure, well-managed
and reliable environment for e-business transactions.

-- Shows customers that Digital Island has the controls and operations in place
to drive e-business revenue through more completed transactions that build
customer loyalty; deliver an excellent customer experience by providing a fast,
guaranteed and secure end-user experience; and reduce operational costs through
outsourcing and improving asset utilization.

-- Minimizes or eliminates the need for customer auditors to directly review
Digital Island operational controls. This helps keep Digital Island's energy
focused on providing excellent services.

SAS 70 is a widely recognized, third-party review standard developed by the American Institute of Certified Public Accountants (AICPA) to allow service providers to report on their control activities and processes to customers and customers' auditors. A formal report including the audit firm's assessment is issued to the service provider at the conclusion of the SAS 70 review.

Digital Island's 2Way Web Services is a portfolio of infrastructure services, including managed hosting, content delivery and networking technologies that enable enterprises to deliver secure transactions, transmit and receive large files, manage assets, track digital rights, and customize the experience globally with guaranteed service level agreements. 2Way Web Services guarantee fast, reliable and secure transactions that allow enterprises to leverage the Internet to increase the profitability of online operations, increase customer value and decrease costs. Digital Island's 2Way Web Services families include 2Transact(TM), 2Deliver(TM) and 2Manage(TM) services.

This news release contains certain forward-looking statements, including, without limitation, statements concerning Cable & Wireless' and Digital Island's operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Actual results could differ materially from the results referred to in the forward-looking statements. These forward-looking statements are based largely on Cable & Wireless' and Digital Island's current expectations and are subject to a number of risks and uncertainties, including, without limitation, changes in external market factors, changes in business or growth strategy or an inability to execute strategy due to changes in such company's industry or the economy generally, the emergence of new or growing competitors, various other competitive factors and other risks and uncertainties indicated from time to time in Cable & Wireless' and Digital Island's filings with the U.S. Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this news release will in fact occur. Additionally, neither Cable & Wireless nor Digital Island makes any commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements.

About Digital Island

Digital Island(R), a Cable & Wireless company, is the industry's first provider of 2Way Web Services that enable enterprises to leverage the Internet to increase the profitability of online operations, increase customer value and decrease costs. Digital Island provides robust managed hosting, content delivery and network infrastructure and applications required to transact, deliver, and manage profitable transactions and interactions. Digital Island leverages a global network of data centers, Cable & Wireless' advanced IP network reaching 70 countries and edge computers in 35 countries to lower transaction costs. Digital Island is headquartered in San Francisco. www.digitalisland.net

About Cable & Wireless

Cable & Wireless is a major global telecommunications business with revenue of over (pound)8 billion (US$11 billion) in the year to 31 March 2001 and customers in 70 countries. Cable & Wireless' focus for future growth is on IP (Internet Protocol) and data services and solutions for business customers. It is developing advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With the capability of its global IP infrastructure and its strength in key markets, Cable & Wireless holds a unique position in terms of global coverage and services to business customers. For more information about Cable & Wireless, go to www.cw.com.

Note to Editors: Digital Island and the Digital Island logo are registered trademarks of Digital Island, Inc., a Cable and Wireless company. 2Way Web Services, 2Transact services, 2Deliver services and 2Manage services are trademarks of Digital Island, Inc., a Cable and Wireless company. All other marks are property of their respective owners.