Dgtw Investor Fact Sheet

Investor Fact Sheet w w w . d i g i t a l t o w n . co m

DigitalTown, Inc. 1 1 9 7 4 P o rt l a n d A ve n u e B u rn s vi l l e , M N 5 5 3 3 7 Ma i n P h o n e : 9 5 2 - 8 9 0 - 2 3 6 2 Me d i a C a l l s: 6 1 2 - 9 9 1 - 3 5 0 3 i n f o @ d i g i t a l t o w n . co m

Market Information Ticker Symbol – DGTW.OB Estimated Market Cap 115,103,982 as of Aug 15, 2008 Outstanding Shares 27,083,290 as of May 22, 2008 Number of Share Holders of Record 106 as of May 27, 2008 Investor Relations Investor Development Group Robert Adams Ph: (800) 858-7502 [email protected] Transfer Agent Signature Stock Transfer Inc. Tel: (972) 612-4120 Fax: (972) 612-4122 Accounting Firm Carver Moquist & O'Connor, LLC Tel: (952) 854-5700 Fax: (952) 854-1163 Legal Parsons/Burnett/Bjordahl, LLP Tel: (425) 451-8036 Fax: (425) 451-8568

This fact sheet is a summary of a more detailed disclosure that can be found in DIGITALTOWN’s U.S. Securities and Exchange Commission (SEC) filings and press releases. This fact sheet contains forwardlooking statements that involve significant risks and uncertainties, discussed here. Unless otherwise indicated, the information in this fact sheet is given as of the date of the referenced documents, and DIGITALTOWN does not undertake any obligation to update any information in these documents. About DIGITALTOWN DIGITALTOWN INC (“DT”) is a publicly listed company (trading under ‘DGTW.OB’) which aims to build online local communities across the US, based around the largest social organization in every community – the high school. DT owns the domain names for over 27,000 “School Spirit” sites covering 99% of high schools. (eg. Pasadenabulldogs.com, detroityellowjackets.com) Why Invest in DIGITALTOWN, Inc.? DigitalTown intends to be the leading national network of hyper-local social destination services for high schools. Customized services will include content and media tools related to all aspects of high school life with a focus on school spirit and will include sporting events, booster organizations and social clubs, and other events and activities. With 27,000 domains organized under high recognizable names tied to the heart of the communities, DigitalTown may own the largest single block of consistent, connected hyperlocal online communities in the country."Built to integrate the high school community the service primarily targets high school students who will be given a sense of true ownership of the site. Secondary participants include alumni, parents and teachers. Users will have the ability to build advanced profiles (both public and private), upload and download content, and network with other communities. DigitalTown also presents a solid platform for marketing, advertising and retail partners as well as local media partnerships.

The Opportunity Myspace and Facebook have successfully proven that online communities, focused on the young market, generate huge traffic when their product roadmap resonates well with the audience – although they have not yet proven a business model that scales as well as their growth. Both Myspace and Facebook cannot do what DigitalTown does and that is reach down to local communities where people actually belong and live. Likewise YouTube has become a destination for all genres of online video but its massive bandwidth and storage costs cannot be easily recouped in advertising fees. At the same time the online advertising market is expanding from placing ads for large national advertisers to a new and untapped advertising marketplace – local businesses (from regional advertisers down to city and even neighborhood campaigns). DigitalTown intends to leverage both growth markets – online social networking and ‘hyper-local’ advertising models based around a brand which every person in the neighborhood already knows, the rally point for the local community – the high school. There are approximately 16m students in US high school with 4m graduating each year and a fresh crop of 4m joining the ‘community’ each and every year. Every student, staff member and alumni will be offered an email address for their school site and an opportunity to create a lifetime affinity with their school and to keep in touch with friends once they leave. DigitalTown allows members to follow their school while in it or after leaving it. Members can also find friends on existing school sites and find alumnus later, etc. DigitalTown will incorporate content and media tools that can deliver sporting events and news, connect and support booster organizations and social clubs. It will also bring awareness to the full range of activities and events found in high schools throughout the United States. DigitalTown will provide a safe platform for social interaction, self-expression and communication for students and faculty members that is currently scattered across the web. Each hyper-local community will be monetized through commerce opportunities, while facilitating funding for high school programs. Due to launch in 2009, DigitalTown will capture and focus the spirit and pride that binds students together. From athletic teams to academics, booster clubs to bands, from cheerleading to student government, DigitalTown will distill each school’s spirit into an experience that is useful, entertaining and inspirational for students, parents and alumni.

“I grew up in Detroit. I went to a place called Detroit Country Day School. They've got a great basketball team. Why can't I sit in front of my television and watch the Country Day basketball game when I know darn well it's being videorecorded at all times? It's there. It's just not easy to navigate to”. Steve Ballmer, CEO, Microsoft Washington Post 4 June 2008

DIGITALTOWN INC is a publicly listed company trading under ‘DGTW.OB’

Company Officers Richard A. Pomije - Chairman of the Board and CEO of Digital Town Dick Pomije, 53, has more then 25 years of experience in the computer technology, networking and communications industries. In addition to founding DigitalTown, he has been involved in developing a variety of entrepreneurships for many years. Dick is a proud alumni (1974) of Burnsville High School, where his father once was assistant superintendent, and is a founding member of the school's Black-and-Gold Foundation. Mike Davis has many years experience in computer technology, networking and hosting websites both large and small. He is DigitalTown: because the founder and president of Sihope, Inc., and chief technology officer of DigitalTown.

school life doesn’t just happen in the Paul Gramstad, a Certified Public Account, is Chief Financial Officer of DigitalTown, Inc. Previously he served as CFO for Innovative Financial Services, as Controller for Gift Certificate Centerhallways. and as Accounting Manager for CONUS

Communications. He is very active in his children’s high school (www.eastviewlightning.com), where he is president of the boys’ lacrosse booster club and former treasurer of the football booster club. www.moundsviewmustangs.com, class of 1979.

Advisory Board DigitalTown is a Brian Seth Hurst - CEO of The Opportunity Management Co. dedicated social Brian Seth Hurst will develop brand strategy for DigitalTown. He is CEO of The Opportunity networking platformManagement Company, a strategic-consultancy and cross-media-production firm that is spurring the next generation created in concert of entertainment. Hurst coined the term "cross platform" in 1998 as managing director of Convergent Media at Pittard Sullivan, where he launched TV Guide with and support of as the pioneering cross-platform brand. In 2006, Hurst launched the Rapid Cross Media Initiative to help broadcast clients USA's 27,000 high integrate new platforms to extend their programming to audiences and communities. The methodology established clear schools. workflow and communications processes for the strategy, planning, budgeting and production of integrated storytelling across multiple-media platforms. The process maximizes assets by allowing best-in-class technology vendors to be efficiently integrated into the production process. Hurst participated on the team that developed the original user experience for TiVo; he currently sits on MobiTV's advisory board. He was instrumental in developing the Prime Time Emmy® for Interactive Television and spearheaded the initiative that extended Primetime Emmy® eligibility to original programming distributed via broadband. Currently, he is Second Vice Chair of the Television Academy Board of Governors and after two terms recently stepped down from the National Board of the PGA, where he also served for two terms as Chairman of the PGA New Media Council ('03-'05). Recipient of a 2006 Interactive TV Today [itvt] Award for Leadership in Interactive Television, he was profiled in the April 2007 issue of Emmy® Magazine as one of the 10 media executives leading the industry's digital drive. Hurst, in November '07, was named to the Hollywood Reporter/PGA Digital 50 for the second year in a row. Hurst has authored articles on emerging entertainment for various magazines and was contributing author to the book "They Say They Want A Revolution: What Marketers Need to Know As Consumers Take Control" (iUniverse 2003). Hurst is co-author with Olivia Newton-John of Simon and Schuster's bestselling children's book "A Pig Tale", currently being developed as an animated series by Flying Bark Productions. www.haverfordfords.com, (Havertown, Pennsylvania) (Class of 1974)

i g i t a l T o w n : b e

DIGITALTOWN INC is a publicly listed company trading under ‘DGTW.OB’

Advisory Board Continued Mark Turner - Director of Business Development for Media and Entertainment for Microsoft Corp. Mark, who will advise DigitalTown on strategic relations, is Director of Business Development for Microsoft's Media & Entertainment Group and has more than 11 years' experience in developing innovative business and technology solutions for global media companies. Mark specializes in delivery of media to all types of devices and through traditional and new media paths – from the largest screens (Digital Cinema) down through HD (cable, broadcast and satellite TV), via the Web (streaming, download or corporate IP networks) and to mobiles and portable devices. His current responsibilities include building innovative business models with major studio and music label partners which cover the range of Microsoft's diverse media-facing solutions. Mark also works as an industry expert to internal Microsoft business groups that are developing or refining products for the media industry, such as Xbox, Zune, Windows Media Center, PlayReady DRM and MSN. In previous roles Mark has assisted major content owners in facing challenges to delivering their media across the Americas, Europe and Asia. He has worked closely to deliver broadcast and cable distribution with clients such as E! Entertainment, Fox Sports, Sony Pictures Television, Cisco Systems, Warner Bros, Disney Group, MLB, Paramount, DirecTV, Reuters, ABC News, CNN, Turner and Hallmark. Mark, a British national and a frequent speaker at technology and content conferences, holds a BA in Management Studies from the University of Leeds and is a member of the Academy of TV Arts & Sciences (Interactive Media Chapter), Society of Satellite Professionals International and sits on the board of the Interactive TV Alliance. Scott Holmes - Managing Partner of United Future, who will serve as chair of the advisory board and will focus on the DigitalTown online experience, is Managing Partner of United Future, a Los Angeles firm specializing in user-experience design and application development for the Web, mobile and interactive television environments. For the last 15 years Scott has focused on creating brand equity and digital innovation for a plethora of clients: ABC, Microsoft, General Motors, T-Mobile, Avery Dennison, Alpine Electronics, Autodesk, Caesar's Entertainment and many others. United Future is a division of WONGDOODY, a Seattle-based company. Prior to joining United Future, Scott played an important role in developing Zentropy Partners, a McCann Erickson Worldgroup company, into a Top 10 interactive agency (as ranked by Adweek) as well as fostering and developing its broadband, mobile and interactive television divisions. Scott is a member of the Brand Committee for the Academy of Television Arts & Sciences (emmys.tv). Dan Cooper - Vice President, Business & Legal Affairs for Fox Interactive Media, who will advise on ethical and legal matters – in particular, intellectual property matters – currently serves as a Vice President of Business and Legal Affairs for Fox Interactive Media, Inc. ("FIM"), in Beverly Hills. At FIM, he has primary responsibility for advising such FIM properties as MySpace, Photobucket and FoxSports.com on issues related to copyright law and other aspects of intellectual property. Prior to joining FIM, Dan served for five years as the General Counsel of Perfect 10, Inc. While at Perfect 10, in addition to provide overall transactional legal support, he was responsible for coordinating and directing a series of landmark copyright litigation matters against, among others, Google. Before making to joining FIM, Dan practiced in the intellectual property/technology group at the national law firm of Arnold & Porter and, prior to that, practiced entertainment litigation at Mitchell, Silberberg & Knupp in Los Angeles, where he was part of the team that represented the record company plaintiffs in the Napster litigation. Dan holds both a J.D. and an M.A. from Columbia University in New York. Pat Devereux - CEO of Antenna USA LLC, a lifestyle marketing and brand strategy agency, will focus on product development for DigitalTown. He has more than 20 years' experience in strategic brand development and marketing, working with clients such as Apple, Coca-Cola, Jaguar, Volvo, Reuters, BBC, AOL and Hewlett Packard. Prior to founding Antenna, Pat was Managing Director of Exposure USA, a creative interactive agency with more than 60 clients, including Unilever, Diageo, MTV, Triumph, Sony, Mattel, Timberland and Virgin. Before Exposure, in the mid 1990s, Pat served as the Global Director, Creative/VP, for Omnicom Group's Redwood unit in London and California. At Redwood he authored global CRM strategies and international interactive customer communication plans for clients who included Volvo Cars and Land Rover. In parallel with his work at Redwood, Pat also ran his own agency, Brand Ltd., in London, where he did brand strategy work for clients such as Ducati Motorcycles, The UK Department of Education, and Schroders Bank. He also has extensive knowledge of and experience in Japan and Asia. In 1990, he was a founding partner in the Anglo-Japanese research agency, News Information Network, based in Tokyo, Nagoya and London. Pat is a research associate and author for the Economist Intelligence Unit and a U.S. commentator for the BBC.

DIGITALTOWN INC is a publicly listed company trading under ‘DGTW.OB’

Advisory Board Continued Shawn Gold is founding partner of Social Approach, a digital-media advisory group focused on Social Discovery platforms and technologies. He formerly was Chief Marketing Officer, including heading content, for MySpace, where he spearheaded the development and implementation of marketing initiatives and campaigns for MySpace's more than 110 million users worldwide. Shawn also oversaw the growth and expansion of popular MySpace franchises, including music, film, comedy and MySpace Celebrity, as well as creating the social network's "Impact Awards" and "Our Planet" programs to recognize and reward social responsibility. Gold has more than 15 years of experience in digital marketing and content strategy, including serving as publisher of WeblogsInc, the largest publisher of professional blogs on the Web (now an AOL company). In 2000 he became President and Chief Strategy Officer of Intermix (formerly eUniverse), where his team made it the most popular online entertainment network on the Web and brought it to profitability. He also headed marketing and communications for WHN, an ecommerce company that provided marketing services to the 2002 Olympics, ABC, NBC, Comedy Central, MTV and Fox.

Board of Directors Jeff Mills, 47, joined DigitalTown’s board in 2003. For the last 17 years, Jeff has worked for Xerox Corporation in various operations and sales positions. In addition, he also has served as director for one private company and as president, owner and operator of various business ventures. Jeff’s high school alma mater is in Denver, Iowa, (www.denvercyclones.com), class of 1979.

Pierce McNally rejoined the DigitalTown board in 2007 after serving a previous term earlier in the decade; he chairs the board’s committee and represents DigitalTown on the company’s advisory board. Pierce is a senior attorney with Gray Plant Mooty, Minneapolis, and was an officer and director of his family owned business, Midwest Communications, until it was sold to CBS. An experienced investment and merchant banker, he currently serves as director of several NASDAQ-listed and privately held companies throughout the United States and as a director of Rainy River Resources, Inc., a Minneapolis-based private investment company. Long active in the Twin Cities civic and arts communities, he and his wife have lived in the Minneapolis area since 1978. He is a 1971 graduate of Stanford University and a 1978 graduate of the University of Wisconsin Law School. Pierce spent his high school years at Phillips-Exeter Academy (www.phillipsexeterlions.com), class of 1967, and he still is an active supporting alumnus there.

Gary Hall, who joined the DigitalTown board in 2007, holds a distinguished career covering ten years’ of achievement as an Internet strategist, entrepreneur, business developer and knowledgeable resource in the social media sector. His intuitive understanding of the social media as well as his vast network in the Web 2.0 sphere have established Gary as one of the industry's foremost Internet professionals. As President of Pringo, a social network platform technology, for the last two years he oversaw the company's commercialization after years of research and development. Gary was instrumental in positioning Pringo as a leader in enterprise-level software. He now serves as an executive consultant to Pringo. His deep knowledge of social media has been recognized by frequent media coverage, including Digital Hollywood, Sport Marketing 2.0 and the LA Business Journal, among others, and by regular participation at conferences, including Adotas, Forrester, Richard Scoble, Tom Taulli and MarketingProfs. Before joining Pringo, Gary was instrumental in growing Reunion.com from its inception into a Top Ten interface and simultaneously creating critical partnerships and a dynamic user base (currently 36 million). He led the company's online marketing efforts and overall strategic development. Gary is still an active owner in Reunion.com. Gary, who hails from Rowland Heights, California, graduated in 1982 from John A. Rowland High School (www.rowlandraiders.net).