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SAN FRANCISCO, October 4, 2001 - A study conducted by Giga Information Group, a leading global technology research and advisory firm, measuring return on investment of Internet infrastructure services, found that enterprise companies that use Digital Island's 2Way Web ServicesTM experience substantial benefits including cost savings, reliability, security, performance and flexibility.

The study entitled, "An Analysis of the Total Economic ImpactTM of Digital Island's 2Way Web Services," examines the in-depth benefits over a one-year period for Fortune Global 500 organizations in the financial services, technology and media and entertainment industries. The study determined the total economic impact (TEI) of outsourcing a variety of Internet infrastructure services through a single company.

The cost savings benefits include significant reduction of overall costs of ownership and operation, as well as both cost avoidance and reduction of exposure. In addition, the study found the average Digital Island customer experienced shortened implementation time and efficiency gains, as well as substantial flexibility to quickly scale to meet demand, while maintaining the same high level of performance, reliability, and security.

Following are some key highlights of the results of the study.

- Global 500 companies using Digital Island's integrated hosting and content delivery solution experienced a payback period averaging three months - or four times faster than competing solutions which rely on content delivery without integrated hosting.

- The average Global 500 enterprise in the Digital Island study saved more than $892,000 per year.

- Based on the study, outsourcing with Digital Island has many advantages, including an estimated 28 percent cost reduction in implementation, deployment and maintenance of hosting and content services.

- In addition to the direct cost savings above, the study showed that Global 500 companies interviewed experienced an additional 14 percent cost savings through reduced incremental staffing, and by leveraging existing employees so they can focus on other value-added activities.

- The businesses interviewed by Giga said that Digital Island provides a reliable, secure global network that is comprised of a portfolio of service level agreements, which reduces the potential of unexpected network-related downtime.

"The study by Giga further strengthens Digital Island's position as the only service provider to offer both managed hosting and content delivery that together provide significant ROI and business benefits that reduce costs, improve performance and provide superior customer experiences," said Ruann Ernst, president and CEO. "Digital Island stands apart from other vendors that provide point solutions by delivering an integrated set of Internet infrastructure services that help our customers meet their e-business goals."

In the financial services industry, the overall value created by Digital Island services include guaranteed reliability of delivery of service, efficiency gain from transferring operations to Digital Island, reduced cost of not having to manage multiple vendors and flexibility gains in leveraging deployment of new applications. The entertainment and media industry customer saw the benefits of Digital Island services being driven by revenue.

Digital Island's 2Way Web Services include a portfolio of infrastructure services including managed hosting, content delivery and networking technologies that enable enterprises to deliver secure transactions, transmit and receive large files, manage assets and track digital rights, and customize the experience, globally with guaranteed service level agreements. 2Way Web Services guarantee fast, reliable, secure transactions that enable enterprises to leverage the Internet to increase the profitability of online operations, increase customer value and decrease costs. Digital Island's 2Way Web Services families include 2TransactTM, 2DeliverTM and 2ManageTM services.

Giga's analysis was based on its Total Economic Impact (TEI) tool. TEI captures and records the value of IT using costs, benefits and uncertainty. The TEI methodology focuses on quantifying the value produced by IT investments. It does this by not only considering the costs and potential cost reductions, but by quantifying business benefits - important business outcomes driven by technology, as well as flexibility - having the "option" to move quickly in response to ever-changing market conditions. To add accuracy to the quantification, TEI applies a risk filter, thereby producing a more realistic expectation of value having considered all the risks to the implementation of the investment.

Copies of the study are available and can be downloaded from:

About Giga Information Group

Giga Information Group provides practical objective research, advice and continuous coaching on technology for e-business. Giga's integrated suite of offerings helps clients make strategic decisions about the technologies, people and processes needed to excel in the new digital economy. Emphasizing close interaction between analysts and clients, Giga delivers support with the speed and scope necessary for e-business.

Giga began providing services in April 1996 and now has a global client base encompassing more than 1,300 organizations. Its enterprise clients include companies that use, sell and invest in technology.

Headquartered in Cambridge, Massachusetts, Giga has 15 other offices covering the Americas and Europe. Giga is also represented by distributors in other areas of the world. The Company's Web site can be accessed at

The Company's logo with the name Giga Information Group is a registered trademark of Giga Information Group, Inc.

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.

About Digital Island

Digital Island., a Cable & Wireless company, is the industry's first 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. As a Cable & Wireless company, Digital Island operates data centers in the United States, Asia-Pacific region and Europe and has a global content delivery network that reaches more than 35 countries worldwide. Digital Island also leverages Cable & Wireless' advanced IP network reaching 70 countries.

Digital Island is headquartered in San Francisco.

About Cable & Wireless

Cable & Wireless is a major global telecommunications business with revenue of over #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


Laura Stadler, Media +1 415 738 4774,

Lyndsay Barrett, UK Media +44 (0) 20 7716 5878,

Valerie Gerard, Investor Relations (Cable & Wireless) +1 646 735 4211,

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