Digital Island Successfully Completes Review of 2Way Web Services by Deloitte & Touche

Business Wire, Oct 23, 2001

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 23, 2001

Service Auditors' Report Provides Assurance That Online Transactions

Are Securely and Reliably Managed and Delivered by Digital Island

Digital Island, Inc., a Cable & Wireless company, (NYSE:CWP)(LSE:CW), today announced its 2Way Web Services(TM) have received the Statement on Auditing Standards No. 70 (SAS 70) Type II Service Auditors' Report from Deloitte & Touche LLP. The SAS 70 Type II report validates Digital Island's standards for physical and logical security systems of Digital Island's 2Way Web Services infrastructure, comprising its data centers, global IP backbone and 35-country content delivery network.

Digital Island is the first Web services provider to receive the SAS 70 Type II report for its entire portfolio of 2Transact(TM), 2Deliver(TM) and 2Manage(TM) services, which cover managed hosting, networking and content delivery service elements.

Many enterprises, especially within the financial services sector, require the SAS 70 Type II report to thoroughly evaluate Digital Island's systems, processes and controls critical to transact business with their online customers and to adhere to regulatory requirements for security and availability. Digital Island's 2Way Web Services support transactions of more than $1 billion a day for some of the world's largest financial institutions, including ABN AMRO, Dresdner Bank Group, E*Trade Group, J.P. Morgan Chase & Co., and UBS Warburg.

"SAS 70 certification is a critical tool for any company that deals with sensitive information, to prove that its security processes are as good as the company claims," said Octavio Marenzi, principal analyst for Celent Communications. "In financial services in particular, security is one of the top 10 CEO concerns. Digital Island is the first company to achieve this level of certification for both its content delivery and hosting network."

"Our financial services customers need to comply with strict regulatory security requirements for their information technology operations," said Paul Evenson, chief information officer, Digital Island. "The assessment of our business controls helps Digital Island confirm that its 2Way Web Services are a key tool for enterprises to increase their security, reliability and performance of their e-business operations. The SAS 70 Type II report provides credible evidence to banks, brokerage firms and insurance companies that the physical and logical security systems in place at Digital Island are operating effectively."

The SAS 70 report assesses the design and effectiveness of Digital Island's systems, processes and controls across its 2Way Web Services infrastructure and data centers. Surpassing the requirements of the Type I report, which defines and documents the existence of controls, the Type II report includes assessment and comprehensive testing of the effectiveness of the controls in operation, with respect to Digital Island's 2Way Web Services infrastructure and data centers. The review also tests and reports on physical and electronic security measures, disaster-recovery planning, network access and monitoring, environmental back-ups and network redundancies, change management, new-client implementation and customer service.

The customer benefits of having the SAS 70 Type II review are as follows:

-- Differentiates Digital Island as the only integrated solution provider for
hosting, network and content delivery services to successfully complete a SAS
70 Type II review.

-- Provides assurance to financial services customers that may be subject to
oversight by regulatory agencies in the countries in which they operate that
Digital Island meets their requirements.

-- Supports Digital Island's assertion that it provides a secure, well-managed
and reliable environment for e-business transactions.

-- Shows customers that Digital Island has the controls and operations in place
to drive e-business revenue through more completed transactions that build
customer loyalty; deliver an excellent customer experience by providing a fast,
guaranteed and secure end-user experience; and reduce operational costs through
outsourcing and improving asset utilization.

-- Minimizes or eliminates the need for customer auditors to directly review
Digital Island operational controls. This helps keep Digital Island's energy
focused on providing excellent services.

SAS 70 is a widely recognized, third-party review standard developed by the American Institute of Certified Public Accountants (AICPA) to allow service providers to report on their control activities and processes to customers and customers' auditors. A formal report including the audit firm's assessment is issued to the service provider at the conclusion of the SAS 70 review.

Digital Island's 2Way Web Services is 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, track digital rights, and customize the experience globally with guaranteed service level agreements. 2Way Web Services guarantee fast, reliable and secure transactions that allow 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 2Transact(TM), 2Deliver(TM) and 2Manage(TM) services.