Digex, Incorporated (Nasdaq: DIGX), announced today a reduction of approximately 200 positions or about 20% of its workforce. The initiative will begin immediately and is concentrated in non-service delivery organizations. These efforts are part of an overall plan for Digex to become financially self-sustaining, and to align and focus resources on servicing the company's customer base.

"Digex has three top priorities - customer focus, expanding our value proposition and financial independence. This initiative is one of several actions we're taking to ensure expenses are aligned with revenues," said George Kerns, president and CEO of Digex. "These are difficult decisions and much effort has been made to ensure that these actions will not impact delivery of services to our customers. Digex remains committed to retaining its market leadership and providing the highest quality hosting solutions and services."

Digex expects to complete these actions by the end of the week. Affected employees will receive a severance package relative to their duration of service with the Company.

About Digex
Digex is the leading provider of managed services. Digex customers, from mainstream enterprise corporations to Internet-based businesses, leverage Digex's services to deploy secure, scaleable, high performance e-Enablement, Commerce and Enterprise IT business solutions. Additional information on Digex is available at www.digex.com.

Contacts:
Tania Almond
Digex, Inc.
Phone:240-456-3800
E-Mail: tania.almond@digex.com

Secret F. Wherrett
Digex, Inc.
Phone:240-456-3556
E-Mail: secret.wherrett@digex.com