HONOLULU, Hawaii -- January 20, 1998 -- Digital Island, the first global overnet that provides multinational corporations with a single-hop, scalable applications network, and Cisco Systems, Inc., the worldwide leader in networking for the Internet, today announced a combined effort to offer advanced, end-to-end networking solutions.

Using a Cisco Powered Network, Digital Island has leveraged the Cisco IOS software with the industry's first Internet Application Engine. The Internet applications engine is a combination of Cisco IOS network services and Digital Island-developed, vertical-market modules (i.e., software distribution, publishing, distance learning, telephony). The Internet Applications Engine was built by Digital Island to accelerate the deployment of electronic commerce programs directly into local markets worldwide using the Cisco IOS platform.

"Cisco shares Digital Island's vision that the IP network is the foundation for delivering intelligent business solutions for competing more effectively in the global marketplace," said Ron Higgins, founder and CEO of Digital Island. "By working with Cisco, our customers benefit from Internet services and applications that lead the industry in reliability, performance and innovation on our distributed-star overnet."

The Cisco Powered Network offers Digital Island's multinational customers reliable, secure and high-performance global IP services. The relationship underscores the focus of Digital Island and Cisco on using intelligent broadband IP networking to deliver enhanced connectivity and network-based applications to customers.

"Cisco's high-performance, reliable networking solutions enable Digital Island to offer consistent global networking services," said Don Listwin, senior vice president of Cisco's Service Provider Line of Business. "Digital Island's relationship with Cisco will enable its customers to be confident that their network will deliver a high level of network interoperability and performance, as well as new, advanced and differentiated services."

In the Cisco Powered Network program, Digital Island will provide services based predominantly on Cisco equipment and software. Digital Island's participation in the program - including use of the Cisco Powered Network logo to brand its services and marketing support materials - demonstrates Digital Island's ability to provide innovative services and industry-leading technology solutions.

Digital Island is the first company to use Cisco DistributedDirector and Cisco LocalDirector software technologies together, and views this comprehensive solution as another important tool in staying on the forefront of the Internet industry. With Cisco DistributedDirector and Cisco LocalDirector software, Digital Island's customers realize improved access performance to their applications and guaranteed location of their next available server if one should fail.

Using Cisco DistributedDirector and Cisco LocalDirector software technologies together, Digital Island offers maximized performance level guarantees that are generally unavailable through the public Internet.

About Digital Island

Digital Island is a private network that combines an efficient, global, single-hop architecture with a powerful Internet Applications Engine for the reliable, cost effective deployment of Internet business applications. The network directly connects to the Internet in local global markets, bypassing the congestion and chokepoints of the public Internet. As a premium network, Digital Island's overnet was specifically designed to provide multinational corporations with a competitive advantage in local markets worldwide. The company is headquartered in Honolulu, Hawaii, with sales offices in major cities. Digital Island is located on the Internet at http://www.digisle.net.

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is theworldwide leader in networking for the Internet. News and information areavailable athttp://www.cisco.com.

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Cisco IOS is a trademark, and Cisco, Cisco Systems, and the CiscoSystems logo areregistered trademarks of Cisco Systems, Inc. in the U.S. and certain othercountries. All othertrademarks mentioned in this document are the property of their respectiveowners.