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Prospectus Supplement No. 1 Dated October 20, 2000
(To Prospectus Dated August 10, 2000)
Filed Pursuant to
Rule 424(b) (3) and (c)
Commission File No. 333-41540
1,012,642 Shares
[LOGO]
Digital Island, Inc.
Common Stock
This Prospectus Supplement No. 1 (the "Prospectus Supplement")
supplements our Prospectus dated August 10, 2000 (the "Prospectus") relating to
the sale by certain of our current stockholders, or by pledgees, donees,
transferees, assignees or other successors in interest that receive such shares
as a gift, partnership distribution or other non-sale related transfer (the
"Selling Stockholders"), of up to 1,012,642 shares of our common stock that were
issued in connection with our acquisition of Live On Line, Inc. and our license
agreement with SRI International.
Any statement contained in the Prospectus shall be deemed to be
modified or superseded to the extent that information in this Prospectus
Supplement modifies or supersedes such statement. Any statement that is modified
or superseded shall not be deemed to constitute a part of the Prospectus except
as modified or superseded by this Prospectus Supplement.
This Prospectus Supplement should be read in conjunction with, and may
not be delivered or utilized without, the Prospectus. This Prospectus Supplement
is qualified by reference to the Prospectus except to the extent that
information herein contained supersedes the information contained in the
Prospectus. Capitalized terms used in this Prospectus Supplement and not
otherwise defined herein have the meanings specified in the Prospectus.
SELLING STOCKHOLDERS
The table captioned "Selling Stockholders" commencing on page 4 of the
Prospectus is hereby amended to reflect the addition of Footnote (1). Footnote
(1) below sets forth the transferees of one of our stockholders who were not
specifically identified in the Prospectus as Selling Stockholders. The
Prospectus is hereby amended to include these transferees, identified in
Footnote (1), as Selling Stockholders.
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Prospectus Supplement No. 1 Dated October 20, 2000
(To Prospectus Dated August 10, 2000)
<TABLE>
<CAPTION>
Number of Shares of Percent of Outstanding Number of Shares of
Common Stock Shares Beneficially Common Stock
Name of Selling Stockholder Beneficially Owned Owned Registered for Sale
---------------------------------- ------------------- ---------------------- -------------------
<S> <C> <C> <C>
Veronis, Suhler & Associates, Inc.
(1)................................ 19,416 * 19,416
Roger Krakoff 1,671 * 1,671
Joel Novak 3,340 * 3,340
Kathleen Thomas 626 * 626
</TABLE>
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* Less than one percent.
(1) In October 2000, 5,637 shares of our common stock held by Veronis, Suhler &
Associates, Inc. were transferred and distributed to Roger Krakoff, Joel
Novak and Kathleen Thomas in the amounts set forth in the table above.
2
