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To: $Mogul who wrote (291)7/21/1999 10:13:00 AM
From: djane  Read Replies (1) | Respond to of 1214
 
*OT* Digital Island (ISLD) and Compaq Form Alliance to Deploy Global, Highly Available, Scalable e-Business Solutions

Business Wire - July 21, 1999 08:39

SAN FRANCISCO and HOUSTON--(BUSINESS WIRE)--July 21, 1999--

World's Largest Global Supplier of Computer Systems and Global e-Business Network Services
Provider Team for Joint Sales and Marketing

Digital Island, Inc. (NASDAQ:ISLD), a leading provider of network services for globalizing
e-business applications, and Compaq Computer Corp. (NYSE:CPQ), the largest global supplier of
computer systems for Compaq NonStop(R) eBusiness, today announced a partnership to provide
enterprise-class customers with highly available and scalable e-Business systems built around the
innovative solutions of both companies.

Together, the companies plan to deliver reduced cost of ownership, business-critical quality, and faster
time to market worldwide for applications in markets such as financial services, publishing, customer
support, high-tech and software distribution. The new joint sales and marketing relationship will
leverage Compaq's NonStop(R) architecture and Digital Island's Intelligent Network. Compaq will
partner with Digital Island to provide global network services, and application hosting and content
distribution.

"As the Web continues to change the way global companies do business, the need for enterprise-class
Internet solutions has never been greater," said Ruann F. Ernst, president and CEO of Digital Island.
"Together, Digital Island and Compaq provide a platform that delivers a reliable, globally scalable
Internet solution, allowing customers to gain a competitive edge through rapid deployment of their
Internet business strategies."

"Compaq NonStop(R) eBusiness solutions are designed to help companies use the Internet to increase
revenue, improve productivity and enhance customer satisfaction," said Enrico Pesatori, senior vice
president and group general manager, Enterprise Solutions and Services Group at Compaq. "A
successful e-business strategy requires numerous components, including a well-designed, adaptive
network infrastructure, such as the unique global solution offered by Digital Island."

Digital Island Background

Digital Island(R) is a leading provider of network services for globalizing e-Business applications.
Digital Island serves companies that operate in multiple countries and need to securely and consistently
extend business-critical applications for marketing, selling, servicing, or distributing products via the
Internet. Digital Island's service includes global content distribution and hosting, the localization of
end-user online experiences, and a reliable global Intelligent Network, all of which are designed to
deliver the right content, to the right customer, in the right market, at the right time. The Company has
regional data centers in New York, Santa Clara, Honolulu and London, connecting directly into 19
countries with Local Content Managers in nine markets worldwide to provide the ubiquity and reach of
the public Internet with the quality and functionality normally available only in a corporate wide-area
network.

Compaq Background

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer
company in the world and the largest global supplier of computer systems. Compaq develops and
markets hardware, software, solutions, and services, including industry-leading enterprise computing
solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions,
commercial desktop and portable products and consumer PCs. The company is an industry leader in
environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized
Compaq marketing partners. Customer support and information about Compaq and its products are
available at compaq.com.

Important Notice:

Compaq, Registered U.S. Patent and Trademark Office. 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 involve 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 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 including its recent filing
on Form S-1.

CONTACT: Compaq Computer Corporation
SoHanna Park
408-285-9228
sohanna.park@compaq.com
or
Digital Island Public Relations
Irwin Greenstein
415-228-4162
irwin@digitalisland.net
or
Digital Island Investor Relations
Tom Thompson
415-228-4102
tomt@digitalisland.net