Exhibit 99.1

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Contact:
Investors								News Media
Maggie Morris								John Stevens
(617) 369 8577								(617) 867 1451
maggiemorris@digitasinc.com								jstevens@digitasinc.com

DIGITAS REPORTS SECOND QUARTER RESULTS

• Fee revenue grows by 15% from Q2 2005

• Reduces fee revenue and earnings outlook for second half of 2006

Boston, July 18, 2006—Digitas Inc. (Nasdaq: DTAS) today reported results for the second quarter of 2006, in line with management’s previously announced expectations.

Second Quarter Results of Operations

Digitas reported fee revenue for the second quarter of 2006 of $100.5 million, compared with $87.6 million for the second quarter of 2005. Total revenue, including reimbursable pass-through expenses, was $190.9 million for the second quarter of 2006, compared to $134.3 million for the second quarter of 2005. The company reported net income of $13.5 million, or $0.14 per diluted share, for the second quarter of 2006, as compared to net income of $11.9 million, or $0.12 per diluted share, in the prior-year period. Adjusted cash earnings¹ were $17.0 million, or $0.17 per share, for the second quarter of 2006, as compared to adjusted cash earnings of $13.3 million, or $0.14 per share, for the second quarter of 2005. The company’s cash balance, including short-term investments, at June 30, 2006, was $185.4 million, as compared to $217.3 million at December 31, 2005. The company also repurchased 957,830 shares of its common stock at an average price of $12.71 per share in the second quarter of 2006.

David W. Kenny, Chairman and Chief Executive Officer, Digitas Inc., said, “Exiting our second quarter, I remain confident about our prospects. While I am disappointed in our reduced near-term outlook, due to a handful of specific client challenges, our largest and longest-standing client relationships remain strong. In addition, we have a more diverse set of clients with the potential to grow over the long-term. We are committed to executing our growth strategy of building deep client relationships that fully use the capabilities of direct and digital marketing engines.”

Six Months Results of Operations

Digitas reported fee revenue for the six months ended June 30, 2006 of $197.7 million, compared with $167.8 million for the same period of 2005. Total revenue, including reimbursable pass-through expenses, was $366.2 million for the six months ended June 30, 2006 compared to $272.1 million for the same period of 2005. The company reported net income of $28.0 million, or $0.29 per diluted share, for the six months

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ended June 30, 2006, as compared to net income of $22.2 million, or $0.23 per diluted share, in the prior-year period. Adjusted cash earnings¹ were $33.8 million, or $0.34 per share, for the six months ended June 30, 2006, as compared to adjusted cash earnings of $24.5 million, or $0.25 per share, for the same period of 2005.

Guidance

Digitas said it anticipates fee revenue of $93 million-$97 million for the third quarter of 2006. The company also said it expects to achieve earnings per share calculated in accordance with generally accepted accounting principles of $0.07-$0.10 in the third quarter of 2006. In addition, Digitas expects adjusted cash earnings² of $0.10-$0.13 per share for the third quarter of 2006.

For the full year 2006, the company anticipates fee revenue of $380 million-$395 million, earnings per share calculated in accordance with generally accepted accounting principles of $0.41-$0.49, and adjusted cash earnings² per share of $0.54-$0.62.

Brian K. Roberts, Chief Financial Officer, Digitas Inc., said, “We believe the fundamentals of our business remain strong. We continue to grow and diversify the client base in a profitable manner and expect to continue to do so over the short and long term.”

Digitas will discuss its second quarter performance on a conference call this afternoon at 4:30 p.m. (Eastern). The call-in number is (888) 689-4452 (U.S. and Canada) or (706) 679-5891 (international). A live webcast of the conference call will also be available on the investor relations page of the company’s Web site, at http://investor.digitas.com. The financial and statistical information presented during the conference call is available for review at http://investor.digitas.com under the FAQ section. Replays by telephone will be available for seven days following the call. To access the replay by telephone, please call (800) 642-1687 (U.S. and Canada) or (706) 645-9291 and request conference ID 2714190. Replays of the call will be available by webcast for an extended period of time at the company’s Web site, at http://investor.digitas.com.

About Digitas Inc.

The agencies of Digitas Inc. (Nasdaq: DTAS) help blue-chip global brands develop, engage and profit from their customers through digital, direct and indirect relationships. Driving accountable and measurable relationship engines, the agencies are known for combining art (creativity and customer insight) with science (analytics, measurement and strategy) across digital and direct media. Founded in 1980, Digitas Inc. is headquartered in Boston. The Digitas agency has locations in Boston, Chicago, Detroit and New York. The Medical Broadcasting Company is located in Philadelphia. The Modem Media agency has locations in Atlanta, London, Norwalk, and San Francisco.

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The company’s adjusted cash earnings calculation excludes from its GAAP earnings amortization of intangible assets, stock-based compensation, restructuring expenses (income), and cumulative effects of accounting changes if any, and employs the company’s actual tax provision. The company believes its adjusted cash earnings calculations are meaningful and helpful to investors as they exclude any noncash charges which the company believes are not necessarily indicative of the performance of the company’s underlying business. Management believes the presentation of earnings excluding these charges provides useful information to investors as measures of operating performance basic to the company’s ongoing operations and comparable from period to period. Management uses adjusted cash earnings to evaluate its ongoing operations and for internal planning and forecasting purposes. The following table reconciles adjusted cash earnings to GAAP earnings:

3 Months Ended

6 Months Ended

(in thousands, except per share data)

6/30/06

6/30/05

6/30/06

6/30/05

GAAP earnings(loss)

13,502

11,886

28,039

22,243

Amortization of intangible assets

1,111

700

2,061

1,400

Stock-based compensation

2,374

725

4,179

808

Net restructuring expenses (income)

—

Cumulative Effect of Accounting Change

—

(470

)

—

Total of adjustments

3,485

1,425

5,780

2,208

Adjusted cash earnings

16,987

13,311

33,819

24,451

Weighted average shares outstanding used in adjusted cash earnings per share calculation

98,466

97,801

98,404

97,465

Adjusted cash earnings per share

0.17

0.14

0.34

0.25

²	The company’s projected adjusted cash earnings per share are calculated and presented for the same reasons as described in the preceding note. The following table reconciles projected adjusted cash earnings per share to projected GAAP earnings per share.

3 Months Ended
9/30/06

12 Months Ended
12/31/06

Low End

High End

Low End

High End

GAAP earnings

0.07

0.10

0.41

0.49

Amortization of intangible assets

0.01

0.04

Stock-based compensation

0.02

0.09

Total of adjustments

0.03

0.13

Adjusted cash earnings

0.10

0.13

0.54

0.62

Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements under the caption “Guidance” regarding management’s expectations with respect to future revenues, earnings per share and adjusted cash earnings per share, statements by the company’s Chief Executive Officer and Chief Financial Officer and statements regarding the company’s future business prospects, profitability, diversity of clients and growth rates. These and all other forward-looking statements in this press release are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected or implied in such forward-looking statements. Such factors include, without limitation, overall economic and business conditions, the demand for the company’s services (including the willingness and ability of the company’s clients to maintain or expand their spending), competitive factors in the company’s markets, the company’s ability to meet client expectations for our services, and the company’s ability to effectively manage its growth and client relationships, including the company’s ability to expand its client roster and reduce revenue concentration among its two largest client accounts, and the company’s ability to forecast future results of operations, among other factors. A further list and description of some of the risks and uncertainties potentially impacting the company’s business and future performance can be found in the company’s filings with the Securities Exchange Commission. Guidance offered by Digitas senior management today represents a point-in-time estimate made early in the third quarter and is based upon numerous assumptions that while believed to be reasonable may not prove to be accurate. The company expressly disclaims any current intention or obligation to update this forecast or any other forward-looking statement contained in this press release.

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DIGITAS INC.

STATEMENT OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
Revenue:
Fee revenue	$	100,539	$	87,566	$	197,705	$	167,845
Pass-through revenue		90,333		46,772		168,532		104,273

Total revenue		190,872		134,338		366,237		272,118

Operating expenses:
Professional services costs		56,801		49,439		112,434		95,705
Pass-through expenses		90,333		46,772		168,532		104,273
Selling, general and administrative expenses		28,549		25,487		54,914		49,075
Restructuring expenses (income)		—		—		10		—
Stock-based compensation		2,374		725		4,179		808
Amortization of intangible assets		1,111		700		2,061		1,400

Total operating expenses		179,168		123,123		342,130		251,261

Income from operations		11,704		11,215		24,107		20,857

Other income (expense)		2,016		915		4,194		1,961

Income before provision for income taxes		13,720		12,130		28,301		22,818
Provision for income taxes		218		244		732		575

Net income before cumulative effect of accounting change		13,502		11,886		27,569		22,243

Cumulative effect of accounting change		—		—		470		—

Net income	$	13,502	$	11,886	$	28,039	$	22,243

Net income per share before cumulative effect of accounting change:
Basic	$	0.15	$	0.13	$	0.31	$	0.25
Diluted	$	0.14	$	0.12	$	0.28	$	0.23

Net income per share:
Basic	$	0.15	$	0.13	$	0.31	$	0.25
Diluted	$	0.14	$	0.12	$	0.29	$	0.23

Weighted-average common shares outstanding:
Basic		90,659		89,433		90,022		88,870
Diluted		98,466		97,801		98,404		97,465

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DIGITAS INC.

CONDENSED BALANCE SHEET

(dollars in thousands)


	June 30, 2006		December 31, 2005
	(unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	136,629	$	180,297
Short-term investments		48,765		37,023
Accounts receivable, net		60,517		54,195
Accounts receivable, unbilled		61,555		26,971
Prepaid expenses and other current assets		4,871		9,343

Total current assets		312,337		307,829
Fixed assets, net		43,051		43,816
Goodwill, net		227,797		211,877
Other intangible assets, net		44,256		31,317
Other assets		6,351		5,795

Total assets	$	633,792	$	600,634

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	61,988	$	45,761
Current portion of long-term debt		69		87
Billings in excess of cost and estimated earnings on uncompleted contracts		61,854		64,506
Accrued expenses		10,185		9,408
Accrued compensation		23,084		28,725
Accrued restructuring		4,477		5,134

Total current liabilities		161,657		153,621
Long-term debt, less current portion		109		139
Accrued restructuring, long-term		10,533		12,797
Deferred Rent		22,576		21,544
Other long-term liabilities		5,131		5,545

Total liabilities		200,006		193,646

Total shareholders’ equity		433,786		406,988

Total liabilities and shareholders’ equity	$	633,792	$	600,634

DIGITAS INC 8-K