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To: John Rieman who wrote (35533)8/27/1998 1:41:00 PM
From: DiViT   of 50808
 
DIGITAL VIDEO SYSTEMS DEBUTS DVD -ROM DRIVES

09/01/98
CD Computing News
Copyright 1998 Information Access Company. All rights reserved.


Digital Video Systems, Inc. (NASDAQ:DVID), Los Gatos, Calif., is shipping its first DVD -ROM drives to global OEM partners.

These new drives were designed and are being manufactured by DVS Korea, which the company recently acquired from Hyundai Electronics Company, LTD. DVS is currently selling its DVD 2X drives and has the working samples of its 5.1XPlus drive available now. According to Dataquest, more than 12 million DVD -ROM drives are expected to be sold as they become the defacto drive standard for all new personal computers coming out in 1999.

"DVS is readily meeting the demands of OEMs looking for drive mechanisms," said Edward Miller, CEO of Digital Video Systems, Inc. "We are now offering state-of-the-art technologies such as high speed DVD -ROM/CD-ROM drives thanks to our recently acquired, ISO-9002-certified facilities in Korea. As the market for DVD heats up, DVS is a solid option for those OEMs looking for the latest DVD technology."

DVS' third generation DVD -ROM drive has the ability to read a multitude of digital media including DVD Video, DVD -ROM, DVD -RAM, CD-ROM, CD-R/RW, CD-AUDIO, and CDi. It is compatible with popular MPEG 2 hardware and software decoding solutions. The DVS drive can read 17-gigabyte DVD -ROM media (dual sided, dual layer; for up to six hours of MPEG 2 video).

About DVS' Manufacturing Facilities

DVS drives are made in its state-of-the-art, ISO-9002 certified (International Standards Organization) manufacturing facility. This level of certification indicates that DVS' products are assembled to stringent, world-wide quality standards. This is intended to provide additional confidence to OEMs considering new resources for CD-ROM or DVD -ROM drive out-sourcing, such as DVS, that returns will be minimized and customer satisfaction maximized.

DVS owns and operates its manufacturing through a strategic business arrangement known in the industry as "contract manufacturing." This has several advantages for DVS, most significantly the ability to minimize its fixed costs and maximize its variable costs without sacrificing management and quality controls. DVS' team of employees work with and manage the additional contract workers, allowing for seamless operations, from molding of DVD -ROM drive housings to metal parts and DVD trays.

For more information on ordering DVS' DVD -ROM drives, contact Dan Stromska at 408/874-8204. For additional information on DVS, contact John Smuda at 408/874-8226.

About DVS

Digital Video Systems is a DVD technology based company that develops and markets DVD -ROM drives, DVD players including subassemblies and components, Video on Demand Network products, CD based Video Engine products, and MPEG encoding and authoring products, for the consumer products, commercial video and computer peripherals markets, also under development are the DVD Intelligent Loader and the DVD Video Engine.

Established in 1992, DVS is a publicly held company based in Los Gatos, with a branch office in Taipei and subsidiaries in Hong Kong, South Korea and Panyu Municipality, Guangdong Province, China. DVS recently acquired the DVD -ROM manufacturing capabilities and technology from Hyundai Electronics Industries Company, Ltd. DVS recently formed two wholly owned subsidiaries, DVS-Korea and DVS-Bermuda, to manage the new DVD -ROM manufacturing, technology and European sales.
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