Samples Available in November Production Starts in December

MOUNTAIN VIEW, Calif., Aug. 30 /PRNewswire/ -- Digital Video Systems, Inc. today announced that its 10X DVD-ROM Drives are scheduled for introduction at the time of the Fall COMDEX this year. The 10X samples will be distributed in November 1999 for customers' evaluation, with the production starting in December 1999.

A 10X DVD-ROM Drive transfers data at 10 times the speed of a 1X DVD-ROM Drive. DVS already completed the design and testing of its 8X models in July 1999. However, the Company decided to directly switch from the 6.2X models to the 10X models, in view of the expected life cycle for its 8X models being too short to be worth the effort of phasing them in and out of the Company's production and product mix.

DVS' Co-Chairman and CEO, Ms Kuo, stated, "DVS introduced the 2X DVD-ROM Drives in July 1998, the 5.2X models in September 1998, and the 6.2X models in February 1999, which was only about half a year ago." Kuo added, "To develop and produce the fastest DVD-ROM Drives in such a high paste, while rapidly ramping up the production and sales of the DVD Intelligent Loaders, it demonstrates the outstanding ability and performance of our DVD team led by Mr. Sunghee Lee."

DVS' 10X DVD-ROM Drives will be compatible with DVD-Video, DVD-ROM, DVD-R and virtually all CD formats including CD-ROM, CD-Audio, CD-R, CD-RW, Video CD, CD-I/FMV, Multi-session Photo CD or Photo CD.

About DVS

Digital Video Systems, Inc. is a technology company specializing in the development and application of DVD (Digital Versatile Disc) and digital-video related technologies. The Company currently develops and markets DVD-ROM drive, DVD Intelligent Loader, including subassemblies and components, VCD (Video Compact Disc) based Video Engine and Ad-Insertion products for the consumer, commercial and computer peripheral markets.

Established in 1992, DVS is publicly traded company headquartered in Mountain View, Calif., with subsidiaries in Hong Kong, Bermuda, South Korea and China. DVS is a trademark of Digital Video Systems, Inc.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the private Securities Litigation Reform Act of 1995 that involve various risks and uncertainties, including, without limitation, statements with respect to DVS' strategy, proposed sales of DVS' products, markets and the development of DVS' products. DVS' actual results may differ materially from those described in those forward-looking statements due to a number of factors, including, but not limited to, risks of competition and the enforceability of DVS' patents and other intellectual property rights, risks relating to the development and market acceptance of DVS' products, and risks related to planned rapid growth of the DVS' business and the conduct of business by DVS in foreign countries, risks relating to the shortage of capital after substantial losses in prior years, which factors and others described in documents that DVS files from time to time with the Securities and Exchange Commission, including the Company's Form 10-KSB filed June 30, 1999 and Form 10QSB filed August 2, 1999. For more information on DVS' products, email to [email protected], call 650-564-9699 or visit: www.dvsystems.com.

SOURCE: Digital Video Systems, Inc.