Datalink Completes Agreement to Sublease Portion of Its Corporate Facility; Cost savings of $950,000 per year; non-cash charge to be taken in Q1 2005

Business Wire, Dec 20, 2004

MINNEAPOLIS -- Datalink Corporation (Nasdaq:DTLK), a leading independent information storage architect has reached agreement to sublease approximately 55% of its corporate headquarters facility located in Chanhassen, Minnesota. The new tenant is expected to occupy approximately 55,000 square feet of office space beginning around March 31, 2005. The sublease agreement concludes in 2012. Datalink expects that the agreement will generate a reduction in annual rent and associated costs of approximately $950,000 beginning in the quarter ended March 31, 2005. Datalink will share the facility with the new tenant and continue to maintain its corporate headquarters in Chanhassen, Minnesota.

Greg Meland, Datalink Chief Executive Officer, commented, "This agreement will result in significant expense reduction. We look forward to generating improved operating results with the cost savings."

Datalink expects to take a one time non-cash charge of approximately $3 million in the quarter ended March 31, 2005. The accrual primarily represents the difference between the company's original lease payment, and the amount it will receive from the sub lessee over the remaining lease term.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. This press release contains forward-looking statements, including the amount and timing of our anticipated future rent reductions and charges related to our sublease. Our estimates are uncertain and our actual expenses for the sublease, and our rental cost savings, may differ over time from our internal projections.

Datalink Corporation is an information storage architect. The company analyzes, designs, implements, and supports information storage infrastructures that store, protect, and provide continuous access to information. Datalink's specialized capabilities and solutions span storage area networks, network-attached storage, direct-attached storage, and IP-based storage, using industry-leading hardware, software, and technical services.