DigitalThink Announces Record Revenues for Fourth Quarter of Fiscal 2001

April 25, 2001

SAN FRANCISCO — DigitalThink, Inc. (Nasdaq:DTHK),

the leading provider of business-to-business e-learning solutions to Fortune

1000 companies, today announced record revenues for its fourth quarter and the

fiscal year ended March 31, 2001.

Revenues for the fourth quarter of fiscal 2001 were $12.8 million

compared with $4.3 million for the same period last year, an increase

of 198% and an increase of $2.1 million or 19% over the quarter ended

December 31, 2000. Reported net loss for the fourth quarter was $9.9

million or a net loss of $.28 per share compared to a net loss of $7.2

million in the quarter ended March 31, 2000. Excluding non-cash

charges totaling $5.0 million for amortization of goodwill,

amortization of warrant expense associated with performance warrants

issued to Electronic Data Systems Corporation and amortization of

stock-based compensation, the net loss for the quarter ended March 31,

2001 was $4.9 million or $.14 per share.

Revenues for the fiscal year ended March 31, 2001 were $38.7

million, up $27.8 million from the same period last year, representing

annualized growth of over 250%. Reported net loss for the 12 months

ended March 31, 2001 was $52.2 million, or a loss of $1.51 per share.

Excluding non-cash charges totaling $29.3 million for write-off of

in-process research and development, amortization of goodwill,

amortization of warrant expense associated with performance warrants

issues to Electronic Data Systems Corporation and amortization of

stock-based compensation, the net loss for the fiscal year ended March

31, 2001 was $22.9 million, or $.66 per share. As of March 31, 2001,

DigitalThink ended the fiscal year with cash balances of $68 million.

“Fiscal 2001 was a record year for DigitalThink,” said Pete

Goettner, chairman and CEO of DigitalThink. “DigitalThink is

demonstrating that e-learning is an indispensable tool for global

businesses focused on reducing costs, maximizing revenue

opportunities, accelerating time-to-market for new products and

services, and communicating with geographically dispersed customer

bases. As we begin fiscal 2002, the business climate is clearly

toughening. However, we believe that customers will continue to choose

DigitalThink e-learning solutions for the near-term value it brings to

their businesses.”

In addition to the record revenues in the fourth quarter recent

highlights at DigitalThink include:

  • DigitalThink added 22 new customers, including Honeywell, Marsh

    & McLennan, Palm, Revlon and Texas Utilities. DigitalThink also

    expanded relationships with several key customers including Aspect

    Communications, Charles Schwab, Cisco Systems, General Electric,

    Hewlett Packard, Intuit and PeopleSoft.

  • EDS, one of DigitalThink’s global strategic alliance partners,

    closed its first large e-learning initiative based on the DigitalThink

    platform. DigitalThink and EDS will work in partnership to develop

    mission critical e-learning solutions for Avaya’s employees and


  • DigitalThink and KPMG, another global strategic partner, have

    signed an agreement with a major governmental agency in the United

    Kingdom to move critical personnel training programs online.

  • DigitalThink launched the Enterprise Gateway, E-Learning’s

    first open protocol for integration with third party enterprise

    software applications. Based on industry standards XML, SOAP and SSL

    technologies, the Enterprise Gateway allows DigitalThink’s platform to

    securely communicate and exchange data with CRM, ERP, LMS and

    e-commerce enterprise applications. In conjunction with this rollout,

    DigitalThink announced a range of new partners committed to

    interoperability with the company via the Enterprise Gateway,

    including Boniva Software, Click2Learn, Docent, ISOPIA, Oracle,

    Teamscape, and THINQ.

  • John Olmstead has joined DigitalThink to head up its sales

    organization in the role of vice president for sales. John has a long

    and impressive track record at UUNet and Compuserve Network Services

    (now WorldCom), most recently as a vice president of global sales.

  • DigitalThink is also pleased to announce it has agreed to

    purchase the outstanding shares of TCT Technical Training Pvt. Ltd.,

    of Kolkata (formerly Calcutta), India. TCT currently has more than 60

    employees with extensive experience in e-learning web design and

    production. The transaction must be approved by the Indian government

    and is expected to close by the second quarter of fiscal 2002.

About DigitalThink

DigitalThink, Inc. (Nasdaq:DTHK)

is the leading provider of e-learning business solutions to Global 2000 companies.

DigitalThink is at work training employees, making sales channels more effective

and assuring customer loyalty at smart companies such as Sun Microsystems, EDS,

Deutsche Bank, GE Capital, KPMG Consulting, The Gallup Organization, Charles

Schwab & Company, Cisco Systems and Circuit City. For comprehensive information,

visit the DigitalThink Web site at

"Safe Harbor” Statement Under the Private Securities Litigation Reform

Act 1995:

The statements contained in this release that are not purely

historical are forward-looking statements within the meaning of

Section 21E of the Securities Exchange Act of 1934, including

statements regarding DigitalThink’s expectations, beliefs, hopes,

intentions or strategies regarding the future. Forward-looking

statements include statements regarding future sales, beliefs about

the applicability of DigitalThink’s solutions, sales to existing

customers, growth of future enrollments, successful integration of the

newly acquired Indian operations and the growth of the e-learning

market. All forward-looking statements included in this release are

based upon information available to DigitalThink as of the date

hereof, and DigitalThink assumes no obligation to update any such

forward-looking statement. Actual results could differ materially from

DigitalThink’s current expectations. Factors that could cause or

contribute to such differences include, but are not limited to, our

limited operating history, expected fluctuation of our quarterly

revenues, our ability to recognize revenues in accordance with our

expectations, successful hiring and retention of qualified staff, the

continued success of our alliance program, and other factors and risks

discussed in DigitalThink’s filings with the Securities and Exchange

Commission on June 26, 2000 and any other reports filed from time to

time pursuant to the Securities and Exchange Act of 1934.

   DigitalThink Inc.

   Statements of Operations

   (in thousands, except per share data)


                        Quarter Ended           Year to Date

                           March 31,               March 31,

                        2001        2000        2001       2000

                      --------    --------    --------   --------


 Delivered Learning

  fees                 $  6,801    $  1,938    $ 17,978    $  4,994

 Learning Solution

  services                6,048       2,389      20,680       5,821

                       --------    --------    --------    --------

   Total revenues        12,849       4,327      38,658      10,815

Costs and expenses:

 Cost of Delivered

  Learning fees           1,646         954       5,510       2,409

 Cost of Learning

  Solution services       3,018       1,517      11,212       3,337

 Content research

  and development         1,085       1,307       6,092       4,082

 Technology research

  and development         3,436       1,322      11,791       3,687

 Selling and marketing    6,863       4,378      23,105      11,596

 General and

  administrative          1,816         823       6,046       2,342

 Depreciation               935         390       3,190         915

 Write-off of

  in-process research

  and development            --          --       7,118          --

 Amortization of

  goodwill                1,201          --       3,603          --

 Amortization of

  warrants                2,751          --      13,131          --


  compensation            1,044       1,567       5,431       3,663

                       --------    --------    --------    --------

   Total costs and

   expenses              23,795      12,258      96,229      32,031

                       --------    --------    --------    --------

Loss from operations    (10,946)     (7,931)    (57,571)    (21,216)

Interest and other

 income                   1,045         706       5,344       1,055

                       --------    --------    --------    --------

Net loss               $ (9,901)   $ (7,225)   $(52,227)   $(20,161)

                       ========    ========    ========    ========

Pro forma basic &

 diluted net loss per

 common share (1)      $  (0.28)   $  (0.24)   $  (1.51)   $  (0.79)

                       ========    ========    ========    ========

Shares used in pro

 forma basic and

 diluted net

 loss per

 common share            34,885      29,857      34,524      25,412

Supplemental data :

Adjusted loss

 applicable to

 common shareholders

 excluding in process

 research and


 amortization of


 amortization of

 warrants and


 compensation          $ (4,905)   $ (5,658)   $(22,944)   $(16,498)

Adjusted pro forma

 basic & diluted net

 loss per share (1)     $ (0.14)   $  (0.19)   $  (0.66)   $  (0.65)

Shares used in pro

 forma basic and

 diluted net

 loss per

 common share(1)         34,885      29,857      34,524      25,412

    (1) Pro forma results exclude accretion related to preferred stock

in 2000 and assumes the conversion of preferred stock into an

equivalent number of shares of common stock at time of issuance.

                           DigitalThink Inc.

                             Balance Sheet

                            (in thousands)


                                     March 31,       March 31,

                                       2001             2000


Current assets:

 Cash & equivalents &

  marketable securities              $ 67,872         $ 98,498

 Accounts receivable                    9,027            5,322

 Other                                  4,118              792

                                     --------         --------

   Total current assets                81,017          104,612

                                     --------         --------

Property & equipment, net              15,061            5,564

Goodwill and other

 intangible assets                     15,611               --

                                     --------         --------

   Total assets                      $111,689         $110,176

                                     ========         ========



Current liabilities:

 Deferred revenue                    $ 11,548         $  7,035

 Other                                 10,997            5,261

                                     --------         --------

   Total liabilities                   22,545           12,296

                                     --------         --------

Long-term liabilities                      17               --

Total stockholders'

 equity                                89,127           97,880

                                     --------         --------

   Total liabilities and

   stockholders' equity              $111,689         $110,176

                                     ========         ========

Contact Information:


Mike Pope, 415/625-4316 (Investor/Finance)


NRW for DigitalThink

Faith Brewitt, 650/827-7098 (Press)