Digi-Data Launches Telefonica's Terabox Service

Announcement marks service provider's entrance into cloud computing

BROOMFIELD, Colorado, January 5 - Digi-Data Corporation, a leader in online storage technologies, announced
today the launch of the terabox service for Telefonica, the world's fourth
largest telecommunications provider. With over 260 million customers
worldwide, terabox marks Telefonica's entrance into the cloud computing
market.

Terabox, based on Digi-Data's V4 online storage technology, is available
to new and existing Telefonica ADSL customers in Spain. The service enables
customers to store, share, back up, organize and remotely access valuable
digital files, including documents and multimedia, from anywhere there is an
Internet connection.

"The industry is at a critical juncture where more content is being
created by consumers than enterprise," said Dennis Cindrich, Digi-Data's
chief executive officer. "We are very excited about the launch of terabox, a
product that enhances and simplifies the digital lifestyle of Telefonica
customers."

Terabox features a backup application compatible with both Windows and
Apple operating systems in addition to a new multimedia tool called Albums.
Albums allow terabox users to easily manage, organize and share multimedia
files. The all-in-one media player streams and buffers audio and video files
stored in terabox, making them available anywhere there is an Internet
connection. Finally, the recently enhanced share feature allows terabox users
to easily share large digital files with friends and family.

"With an extensive list of competitive features, terabox allows our
customers to safely store their 'digital life,' both personal and
professional," states Nev Haynes, new business marketing manager for terabox.
"As an innovative service, terabox creates great expectations among our
customers and with all team members involved in the development and
commercialization of the solution. We believe terabox will establish
Telefonica not only as guardians of important digital assets, but strengthen
the company's position in the Broadband Added Value Services segment."

"As our preferred partner for this project, Digi-Data adds a global
vision and experience in virtual storage. This, in addition to the experience
and position of Telefonica in this demanding business, create a solid
partnership that will bring benefits for both companies in the years to
come," states Manuel Juan Simon de la Horra, product development manager for
terabox.

For more information on Digi-Data backup and sharing technologies,
including the launch of mobile applications and small and medium business
solutions, please visit www.digidata.com or contact pr@digidata.com. For more
information on terabox, please visit www.telefonica.es/terabox.

About Digi-Data

Digi-Data specializes in the long-term retention and protection of
high-value digital assets. Customers store, share, back up and remotely
access digital files and folders with Digi-Data Internet storage solutions.
Founded in 1962, the company supports a growing list of partners who leverage
Digi-Data's cloud storage solutions in order to deploy branded,
differentiated services. As the only Internet storage solutions provider that
caters to both small/medium business and OEM partners, Digi-Data is
addressing the shift from enterprise to consumer-created content. Digi-Data
is a privately held corporation. For more information, visit
www.digidata.com.

Digi-Data Corporation, pr at digidata.com