Digitiliti, Inc. Announces Upward Movement of Third Quarter Forecast Guides

Digitiliti, Inc. (the “Company”) (Pink Sheets: DIGI) announced today that it moved its forecast guides for the third quarter of 2008 upwards.

In a recent letter to Shareholders, Larry Ingwersen, newly appointed President and CEO, stated that one of his immediate goals is improved external communications from the Company. With that intent, he spoke of the Company’s May 2008 billings. He said, “Today, I am happy to announce that from April to May, the Company set its own record for single month’s growth in reoccurring revenues. We are extremely proud of the sales and operations team who are the key reasons for this growth.”

“The May monthly reoccurring revenues (“MRR”) crossed over the $260,000 mark, requiring us to move our forecast guides for the third quarter upwards. After reviewing our progress with sales prospects and existing customers, our executive team expects the Company’s MRR for the remainder of the 2nd quarter and the 3rd quarter to continue growing at a relatively fast pace. New customer installations should continue to grow at $7,000 to $9,000 per month. Revenue from existing customer installations should continue to grow at a rate of 3% per month across the entire customer base. Combining these vectors, the Company expects to grow to an MRR of $320K for its September 2008 billings. The most significant variable in this forecast is the deployment rate utilized by some larger customers who are in the process of rolling out multiple new installations.”

About Digitiliti: Digitiliti, based in St. Paul, Minnesota, is a pioneer and technology leader in the on-line data storage solutions business. Digitiliti’s fast growth results from its focus on providing SMB/SME companies with enterprise class features and services that are easy to use. All Digitiliti services include comprehensive off-site data protection, on-demand user scalability, rapid file restoration and disaster recovery.

Forward Looking Statements:

This release contains forward-looking statements. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the possibility that some or all of the pending matters and transactions considered by the Company may not proceed as contemplated. These statements are made based upon current expectations that are subject to risk and uncertainty. The Company does not undertake to update forward-looking statements in this new release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found at http://www.pinksheets.com .