Supporting Digitas' strategic growth plan, this acquisition advanced Modem Media's long-term objective to provide integrated customer marketing solutions.

Modem Media is an interactive marketing strategy and services firm. Founded in 1987, it is recognized for the innovation and effectiveness of its work in digital channels. Modem Media clients (among which are AOL, Delta Air Lines, General Motors, IBM, Kraft, Michelin, Hewlett Packard and Sprint) represent a variety of industries that add to the Digitas network list.

"The combination of Digitas and Modem Media brings together two innovators, who share a passion for helping clients win," said David Kenny, the Chairman and CEO, Digitas Inc. "As complementary pioneers, who have been leaders in defining the interactive and database marketing, together we offer an even stronger value proposition to our clients. By helping our clients lead and win, we will do the same for our shareholders and employees."

This acquisition has a number of benefits:

•  It created an industry leader in the field of interactive and database marketing, where Digitas Inc. and Modem Media were complementary pioneers. They have helped define the database and interactive marketing. Together, the companies provide an even stronger value proposition to clients, shareholders and employees.
• Together, the two companies are able to better serve the clients. The acquisition also provided the added share of marketing budgets at key shared accounts, including AOL, Delta and General Motors.
• Due to this acquisition, a great brand was added to Digitas that affords a two-agency model to address some conflicts between clients in selective industries.
• A critical mass was driven in the strategic markets of London and San Francisco, where both companies have important relationships and a potential for the further growth.
• Afforded operating synergies among some functions that guarantee a company-wide support.

In conjunction with the transaction, the Board of Directors of Digitas Inc.(NASDAQ: dtas) has increased its Stock Repurchase Program from twenty million dollars to seventy million dollars. Under the program, Digitas was authorized to acquire shares of its Common Stock in the open market or in private transactions.

Digitas (NASDAQ: dtas) is among the world's fifteen largest marketing services organizations. Marketing engines that drive the customer acquisition, cross-sell, loyalty, affinity and care operations for the world-leading marketers are designed, built and run by Digitas (NASDAQ: dtas). The client list of the company embraces such clients, as American Express, AOL, AT&T, Delta Air Lines and General Motors. Digitas (NASDAQ: dtas) employs more than one thousand and two hundred professionals across offices in Boston, Chicago, London, New York and San Francisco.

Founded in 1987, Modem Media builds a value for global businesses, including Allianz, AOL, Delta Air Lines, General Motors, Heineken USA, Home Depot, IBM, Kraft, Michelin, Philips Electronics, PricewaterhouseCoopers and Sprint. Modem Media is headquartered in Norwalk, Connecticut and has additional offices in San Francisco and London.