Internet News startup Digg of San Francisco, have good reason to smile today with the press announcement of a further round of funding totalling $28.7 million.

Digg, which is privately held, was founded by Kevin Rose in 2004, received the additional round of funding today from Highland Capital along with three of its other existing investors: Greylock Partners, Omidyar Network and SVB Capital. This now brings the total capital invested in Digg to $40 million.

The money potentially ends some speculation of a $200-$300 million Microsoft or Google buyout and should now allow Digg to broaden its marketing profile and expand its news-rating web service to international markets.

According to Digg CEO Jay Adelson, the company still remains unprofitable, but has already tripled its 2007 revenues. No doubt investors are confident that a Digg branding push, particularly into international markets, will generate significant rewards down the road.