Stull, Stull & Brody Announces Class Action Against Digital Island, Inc.

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Jan. 31, 2002

Notice is hereby given that a class action lawsuit was filed on January 31, 2002, in the United States District Court for the District of Delaware, on behalf of holders of Digital Island, Inc. ("Digital Island") (NASDAQ:ISLD) common stock between May 14, 2001 and August 30, 2001, inclusive (the "Class Period"), against corporate defendants Digital Island, Cable & Wireless P.L.C., Dali Acquisition Corp., and individual defendants Ruan F. Ernst, CEO of Digital Island and the members of the Digital Island board of directors during the Class Period.

The complaint alleges that defendants violated Sections 14(a), 14(e), 14(d)(7) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14d-10 promulgated thereunder, by failing to disclose material information to those Digital Island shareholders who had received an Offer to Purchase from defendant Cable & Wireless in May and June 2001, and to those Digital Island shareholders who received a proxy statement in connection with the merger between Digital Island and Cable & Wireless (the "Proxy Statement"), which was consummated on August 30, 2001. In particular, defendants failed to disclose important contracts between Digital Island and Bloomberg, LLP, and Digital Island and Major League Baseball's Internet media. Those contracts were not disclosed either in the Offer to Purchase or the Proxy Statement. Defendants also violated the all-holders provision of the Williams Act by giving additional consideration to directors and officers of Digital Island, who were also shareholders, in excess of that given to other Digital Island shareholders as an inducement to support Cable & Wireless' Offer to Purchase.

Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 25 years and has obtained court approval of substantial settlements on numerous occasions.

If you received the Offer to Purchase and/or the Proxy Statement, you may, no later than March 25, 2002, request the Court appoint you as lead plaintiff in this action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Aaron Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at [e-mail], or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.