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Datalink Buys Storage Consultant

MINNEAPOLIS -- Datalink Corporation (Nasdaq:DTLK), a leading independent information storage architect, today announced that it has acquired privately held Midrange Computer Solutions, Inc. (MSCI). Based near Chicago, MCSI is a storage solutions provider with 14 offices across the United States. The acquisition strengthens Datalinks presence in existing markets and expands its reach into a number of key new markets.

“This is an exciting opportunity,” said Charlie Westling, Datalink president and CEO. “The acquisition of MCSI increases our revenue base by approximately one-third and expands the number of enterprise customers we serve. It also extends our market presence throughout the United States, which is one of our key strategies for further growth.”

A leading solutions provider, MCSI provides consulting, storage solutions and services to a large base of U.S. customers in financial services, communications, healthcare and manufacturing. Profitable since its inception, MCSI’s 2006 revenues were approximately $47 million.

Datalink’s purchase price of MCSI is $14 million, consisting of $5 million in cash and $9 million in Datalink common stock. Datalink will record a one-time charge associated with the acquisition in the first quarter of 2007 of approximately $700,000, or $.04 per fully diluted share. Based on its preliminary analysis, the company expects the acquisition to be accretive to 2007 earnings by approximately $.02 to $.04 per fully diluted share, excluding one-time integration charges and amortization of intangibles.

Westling said, “Like Datalink, MCSI management and employees have built a solid track record of delivering high-quality solutions and services and have established a respected and loyal customer base. The completion of this acquisition is great news for our customers, employees, partners and shareholders. We will increase the size of our talented sales and professional services teams, gain entry into new markets, and expand our presence in the Northeast, Midwest, South, and southern California. We look forward to serving this new base of customers.”

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