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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001157523-04-009779.txt : 20041025
<SEC-HEADER>0001157523-04-009779.hdr.sgml : 20041025
<ACCEPTANCE-DATETIME>20041025195831
ACCESSION NUMBER:		0001157523-04-009779
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041021
FILED AS OF DATE:		20041025
DATE AS OF CHANGE:		20041025

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIGITAL FUSION INC/NJ/
		CENTRAL INDEX KEY:			0001057257
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
		IRS NUMBER:				133817344
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		4940-A CORPORATE DRIVE
		CITY:			HUNTSVILLE
		STATE:			AL
		ZIP:			35805
		BUSINESS PHONE:		2568372620

	MAIL ADDRESS:	
		STREET 1:		4940-A CORPORATE DRIVE
		CITY:			HUNTSVILLE
		STATE:			AL
		ZIP:			35805

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	IBS INTERACTIVE INC
		DATE OF NAME CHANGE:	19980306

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Madison Run Holdings, LLC
		CENTRAL INDEX KEY:			0001290093
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24073
		FILM NUMBER:		041095096

	BUSINESS ADDRESS:	
		STREET 1:		1331 H STREET NW
		STREET 2:		12TH FLOOR
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20005
		BUSINESS PHONE:		202-236-5571

	MAIL ADDRESS:	
		STREET 1:		1331 H STREET NW
		STREET 2:		12TH FLOOR
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20005

	FORMER NAME:	
		FORMER CONFORMED NAME:	Madison Run Holding, LLC
		DATE OF NAME CHANGE:	20040512
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>a4749998_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-10-21</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001057257</issuerCik>
        <issuerName>DIGITAL FUSION INC/NJ/</issuerName>
        <issuerTradingSymbol>DIGF</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001290093</rptOwnerCik>
            <rptOwnerName>Madison Run Holdings, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1331 H STREET NW</rptOwnerStreet1>
            <rptOwnerStreet2>12TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>WASHINGTON</rptOwnerCity>
            <rptOwnerState>DC</rptOwnerState>
            <rptOwnerZipCode>20005</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-10-21</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1650000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>1</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2258108</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note 1</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrant</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.25</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-10-21</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-10-21</value>
            </exerciseDate>
            <expirationDate>
                <value>2009-10-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>50000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeHolding>
            <securityTitle>
                <value>Warrant</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.89</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2004-05-11</value>
            </exerciseDate>
            <expirationDate>
                <value>2009-05-11</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>304054</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>516893</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note 1</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Warrant</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.89</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2004-05-11</value>
            </exerciseDate>
            <expirationDate>
                <value>2009-05-11</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>304054</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>516893</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note 1</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The Reporting Person is the general manager and member of Madison Run, LLC, a limited liability company. Madison Run, LLC
directly owns the shares of common stock and warrants to purchase 516,893 shares of common stock of the Issuer, reported as
indirectly beneficially owned by the Reporting Person on this Form 4. The Reporting Person directly owns the warrants to
purchase 50,000 shares of common stock of the Issuer (the &quot;Warrant&quot;) reported on this Form 4. The Reporting Person disclaims
beneficial ownership of the reported securities, other than the Warrant, except to the extent of its pecuniary interest
therein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Madison Run Holdings, LLC, /s/ G. Stewart Hall, Manager</signatureName>
        <signatureDate>2004-10-25</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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