8-K

                                   Page 1 of 4
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


         Date of report (Date of earliest event reported): July 22, 2004


                              DIGITAL FUSION, INC.
- --------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


        Delaware                       0-24073                   13-3817344
- --------------------------------------------------------------------------------
(State or Other Jurisdiction)  (Commission File Number)        (IRS Employer
                                                             Identification No.)


                4940-A Corporate Drive, Huntsville, Alabama 35805
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               (Address of Principal Executive Offices) (Zip Code)


Registrant's telephone number, including area code: (256) 837-2620
                                                    ---------------


                                       N/A
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          (Former Name or Former Address, if Changed Since Last Report)





Item 5. Other Events
        ------------

     On July 22, 2004, Digital Fusion, Inc. issued a press release announcing
the redemption of its convertible debt owed to a New York based institutional
private equity fund and the entering of a secured revolving line of credit with
First Commercial Bank in Huntsville, Alabama, an affiliate of Synovus Financial
Corp.

     A copy of the press release is attached hereto as Exhibit 99.7.



                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.



                                        DIGITAL FUSION, INC.
                                        (Registrant)


                                        By: /s/ Roy E. Crippen, III
                                            ------------------------------------
                                            Chief Executive Officer and Director


                                        Date: July 22, 2004
                                              -------------


                                  EXHIBIT INDEX

Exhibit No.   Description
- -----------   -----------

99.7           Press release dated July 22, 2004, issued by Digital Fusion, Inc.

EX-99.7

                                                                    Exhibit 99.7

               Digital Fusion Replaces Convertible Debt With LOC

     HUNTSVILLE, Ala.--(BUSINESS WIRE)--July 22, 2004--Digital Fusion, Inc.
(OTCBB:DIGF), a business and information technology (IT) services provider,
today announced the redemption of its convertible debt owed to a New York based
institutional private equity fund.
     On July 1, 2004, Digital Fusion fully redeemed approximately $560,000 of
secured convertible debt and entered into a secured revolving line of credit
with First Commercial Bank in Huntsville, Alabama, an affiliate of Synovus
Financial Corp (NYSE:SNV). The First Commercial Bank line of credit has an
interest rate of prime plus one percent and is secured by Digital Fusion's
receivables and certain guarantees. The redeemed secured convertible debt had an
interest rate of ten percent and certain conversion rights on registered Digital
Fusion common stock at an average price substantially below the current trading
range.
     "The current low interest rate environment made it the right time for us to
finance the company through a significantly more cost effective vehicle," said
Roy Crippen, chief executive officer. "We are pleased to have cut our interest
rate in half and remove the overhang associated with possible stock
conversions."
     "Having this line of credit in place for working capital purposes will be a
key element in fueling our growth plans," said Gary Ryan, president. "The
favorable terms allow us to borrow when needed without the concern of
significant shareholder dilution."

     About Digital Fusion

     Digital Fusion is a business and information technology consulting company
helping its customers make the most of technology to access business
information, enhance the performance of their human resources and meet their
business needs.
     Digital Fusion provides a range of services in business process and
application strategy and development, including Application Development and Data
Management, Systems Integration and IT Support. Based in the eastern U.S.,
Digital Fusion has offices in Washington D.C., Philadelphia, Orlando,
Huntsville, and New Jersey. For additional information about Digital Fusion
visit http://www.digitalfusion.com.

     Forward Looking Statements. All statements other than statements of
historical fact included in this release are forward-looking statements. When
used in this release, words such as "anticipate," "believe," "estimate,"
"expect," "intend" and similar expressions, as they relate to the Company or its
management, as well as assumptions made by and information currently available
to the Company's management, identify forward-looking statements. Actual results
could differ materially from those contemplated by the forward-looking
statements as a result of certain factors including, but not limited to: the
effect of business and economic conditions; the impact of competitive products
and pricing; and capacity and supply constraints or difficulties. Such
statements reflect the current views of the Company with respect to future
events and are subject to these and other risks, uncertainties and assumptions
relating to the operations, results of operations, growth strategy and liquidity
of the Company.

     CONTACT: Digital Fusion, Inc., Huntsville
              Roy E. Crippen, 256-837-2620
              rcrippen@digitalfusion.com