Wolf Haldenstein Adler Freeman and Herz LLP Commences Class Action Suit Against Digital Island, Inc.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--Jan. 24, 2002

Wolf Haldenstein Adler Freeman & Herz LLP has commenced a class action lawsuit in the United States District Court for the District of Delaware on behalf of holders of Digital Island, Inc. ("Digital Island" or the "Company") (NASDQ: ISLD) common stock between May 14, 2001 and August 30, 2001 (the "Class Period"), inclusive, 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 case name and index number are Abrams v. Digital Island, Inc., Civ. 02-057. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.

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.

Plaintiffs seek to recover damages on behalf of all those who received the Offer to Purchase and/or the Proxy Statement. If you received the Offer to Purchase and/or the Proxy Statement, you may wish to join in the action to serve as lead plaintiff. If you received the Offer to Purchase and/or the Proxy Statement, you may, no later than March 25, 2002, request that the Court appoint you as lead plaintiff. 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 plaintiffs." 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 Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas; and offices in Chicago, New Jersey, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at [phone] (Jeffrey G. Smith, Esq., Roberts Abrams, Esq., Michael Miske, George Peters, or Derek Behnke), via e-mail at [e-mail] or visit our website at http://www.whafh.com. Your e-mail should refer to Digital Island.