DigitalTown Finds Strong Support for Spirit Sites

New Data Shows That Boosters, Alumni and Students Are Logging on to Connect With Their High Schools, Hometowns and Each Other

MINNEAPOLIS, MN -- (MARKET WIRE) -- May 21, 2007 -- DigitalTown, Inc. (OTCBB: DGTW) today released key research findings that show enthusiastic user support for grassroots online communities tied to their schools and associated towns and cities. DigitalTown conducted the research from late last year through April 2007 as it laid the foundation for DigitalTown, its nationwide network of thousands of spirit sites.

DigitalTown owns about 99 percent of the domains formed by combining the name of a town or high school with the name of the school's mascot; it owns 94 percent of the names in the dot com format ( Another approximately 1,500 with exactly the same dot com architecture are outside the DigitalTown network of 27,000 sites. Seventy-seven of those independent sites formed the basis for the survey work. Key findings include:

--  Boosters created a majority of the sites -- usually focused on a
    single sport, football.
--  An alumnus or small group of alumni were the second most-frequent
    creators of sites.  Why?  They are trying to more easily reconnect with
    former classmates, organize class reunions or receive current school and
    community news.
--  4,500 monthly visitors on average used the basic standalone sites,
    even when those sites had limited features.
--  14,521 monthly visitors on average used the sites when they received
    active school support.
--  Up to 800 downloads of highlights of a general football game were
    reported at a site offering that service.
--  1,100 highlights on average were downloaded for the homecoming game
    posted on that site.
--  Up to 9,000 unique monthly visitors were reported at more
    sophisticated alumni-centric domains.
--  From 1,000 to 2,000 unique monthly visitors were reported at more
    basic alumni-centric sites.
--  Estimates of average annual local advertising revenue per site ranged
    from more than $10,000 to $2,000.
"The DigitalTown network of 27,000 spirit sites will offer a rich menu of free features -- from email to Social TV to organizing tools -- that will attract a broader, deeper base of community users," said Richard Pomije, founder and chairman. "The results of our research, when applied to our 27,000 sites, show the potential for DigitalTown to become a leader in its class.

"DigitalTown will make it possible to increase connectivity with and support of your hometown and your high school throughout your life no matter where you are," Pomije said. "From this grassroots level, users will be able to reach out to others with similar interests. Schools in towns and cities throughout the country will receive a sophisticated, fun way to interact with their users and supporters, strengthening those bonds and increasing their ability to generate more financial and volunteer support."

About DigitalTown

DigitalTown, Inc. is based in Burnsville, MN. It is the leading developer of local spirit and community sites for high school alumni, boosters and students. Any statements contained herein related to future events are forward-looking statements and 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 forward-looking statements. DigitalTown undertakes no obligation to update any such statements to reflect actual events.

Contact Information: Contact: Marcia Appel DigitalTown, Inc. (952)890-2362