Exhibit 99.1




                      DIGITAL LINK AND DIGITAL LINK FOUNDER
                      EXECUTE MERGER AGREEMENT TO CASH OUT
                     PUBLIC SHAREHOLDERS AT $10.30 PER SHARE


SUNNYVALE,  Calif. - Sept. 3, 1999 - Digital Link Corporation (Nasdaq: DLNK) and
DLZ Corp., a corporation  formed by Vinita Gupta,  the founder,  chief executive
officer and holder of  approximately  50% of the  outstanding  shares of Digital
Link, announced that they have executed a definitive merger agreement.

Under the terms of the merger  agreement,  DLZ will  commence a tender offer for
all  outstanding  shares of the Digital  Link common  stock not owned by DLZ for
$10.30 per share in cash.

The tender offer will  commence on  September  10, 1999 and will be scheduled to
expire at 12:00  midnight New York City time on October 15, 1999. The merger and
the tender offer are subject to certain conditions including a minimum condition
in the tender offer that DLZ own an aggregate  of 90% of the  outstanding  stock
following the tender offer.

The merger  agreement  was  negotiated  on behalf of  Digital  Link by a special
committee of the Board of Directors  composed of directors not  affiliated  with
DLZ. The special committee's financial adviser, Dain Rauscher Wessels,  provided
a  fairness  opinion  to  the  special  committee  concerning  the  $10.30  cash
consideration.  DLZ's financial adviser,  Sutter Securities  Incorporated,  also
rendered a fairness  opinion for delivery to the special  committee and board of
directors. MacKenzie Partners, Inc. will be the Information Agent for the Tender
Offer.

Digital   Link   Corporation   is  a  leading   provider  of   high-performance,
cost-effective,   digital  network  access  products  for  both  narrowband  and
broadband  applications.  The company offers access  solutions that increase the
level of intelligence at the demarcation  point where LANs and WANs meet.  These
products are used by Internet service  providers and carriers as  infrastructure
equipment, and by enterprises for connectivity to WAN services.  Digital Link is
headquartered  in  Sunnyvale,  California,  and offers its  products  worldwide.
Additional    information    is   available   at   Digital    Link's    website:
http://www.dl.com.

Contact: Larry Dennedy
         MacKenzie Partners, Inc.
         (212) 929-5239