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Strategies & Market Trends : Cable and Wireless (CWP)

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To: David Michaud who wrote (125)12/22/2001 4:11:08 PM
From: CIMA  Read Replies (1) of 162
 
Friday December 21, 9:25 pm Eastern Time
Press Release
SOURCE: Digital Island

Federal Court Finds Digital Island First Inventor of Internet Content Delivery Network Technology
Jury Invalidates Core Aspects of Akamai Content Delivery Patent

BOSTON--(BUSINESS WIRE)--Dec. 21, 2001--A U.S. District Court jury today found that Digital Island, a Cable & Wireless company (NYSE:CWP - news), is the first inventor of Internet content delivery network (CDN) technology. By this finding, the jury invalidated key claims of Akamai's U.S. Patent 6,108,703 -- the basis for their FreeFlow content delivery product. The same jury found that Digital Island's Footprint® system does not infringe Akamai's client-side-testing patent (U.S. Patent 6,003,030) acquired in its purchase of InterVu, Inc.

``This is very good news for us,'' said Digital Island CEO and President, Ruann F. Ernst. ``Not only did the jury decide that critical aspects of the Akamai patent are invalid, but they found them invalid because Digital Island had invented them first.''

The jury also found that certain legacy aspects of Digital Island's Footprint® Version 1.0 caching service infringe on minor aspects of Akamai's '703 patent. ``Our customers will not be affected by the jury's verdict,'' said Ernst. ``Digital Island will continue business as usual delivering high quality 2Way Web Services(TM), including our 2Deliver(TM) content-delivery services. Our customers have come to depend on our fast, secure, guaranteed and global service offerings and those services will continue without interruption.''

The jury also found that Akamai does not infringe on Digital Island's content delivery network Truename(TM) patent, which covers ways to ensure that only the freshest information is served to Web sites and ways to optimize content storage by avoiding duplication of information.

This month's trial is one aspect of what is expected to be a multi-year effort to protect Digital Island's intellectual property and defend its status as the first inventor of CDN technology. Digital Island expects to appeal any adverse decisions affecting its intellectual property to the Federal Circuit Court of Appeals. In addition, Digital Island is seeking redress on several patent validity issues before the U.S. Patent and Trademark Office (PTO). The jury's finding of Akamai's invalidity bolsters Digital Island's position before the PTO as it seeks additional patent protection as the inventor of Content-Delivery Technology.

``As the first inventor of content delivery network technology, we will continue to vigorously defend our achievements and intellectual property on all fronts,'' said Ernst.

U.S. District Court Judge Rya W. Zobel is expected to schedule further hearings in January.

About Digital Island

Digital Island (R), a Cable & Wireless company, is the industry's leading 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.

Important Notice: Digital Island, the Digital Island logo and Footprint 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.

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.

--------------------------------------------------------------------------------
Contact:

Digital Island
Laura Stadler, 415/738-4774, (US Media)
lstadler@digitalisland.net
Lyndsay Barrett, +44 (0) 20 7716 5878 (UK Media)
lbarrett@digitalisland.net
or
Cable & Wireless
Chris Tyler, +44 20 7315 4460 (Investor Relations)
chris.tyler@cw.com
Valerie Gerard, 646/735-4211, (US Investor Relations)
valerie.gerard@cw.com
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