DVS' DVD-ROM Production Continues to Increase in Excess of 10,000
Units Per Month
DVS Initiates Sales of its DVD Intelligent Loader;
Headquarters Relocated to Mountain View, California
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 12, 1999--Digital Video Systems, Inc. (Nasdaq:DVID)
announced today that its monthly production of DVD-ROM drives increased at an average rate in excess
of 10,000 units per month for the quarter ended Dec. 31, 1998.
The company has been and is continuing to work on expanding its supplier relationships to meet the
increasing demand for various electronic components used in the DVD-ROM drive. DVS is currently
producing its 5.2X DVD-ROM drive for the rapidly growing Personal Computer OEM market.
In a separate event, the company stated that it is nearing completion of arrangements to double its
production capacity of DVD-ROM drives to 200,000 units per month during the first half of the current
calendar year. DVS' current DVD-ROM drive production capacity is 100,000 units per month.
The worldwide DVD-ROM market has been estimated by International Data Corp. to reach more than 35
million units in calendar 1999.
In addition, DVS is pleased to announce that the company began shipping its DVD Intelligent Loader
product during January 1999. The DVD Intelligent Loader is the equivalent of the DVD-ROM drive for either
a DVD Player or DVIX Player. The major difference is that the Intelligent Loader has an imbedded
microprocessor, which contains the Player's navigator software. The DVS DVD Intelligent Loader has
incorporated technology, which makes it simpler for the Player manufacturers and developers to
implement design alterations due to substantial reduction in firmware development efforts. DVS markets
the DVD Intelligent Loader to consumer electronics product OEM's seeking to contract out either a portion
or all of their DVD/DVIX Player manufacturing. DVS estimates that up to 80 percent of all DVD/DVIX
players manufactured will be available for such contracting arrangements. The market for DVD/DVIX
Players is estimated to reach $3.5 billion in 1999. The Intelligent Loader market represents approximately
25 percent of this market.
President and CEO Edward M. Miller Jr. said, "DVS plans to expand capacity to meet the increasing
demand from PC OEM customers for DVD-ROM, and DVD/DVIX Player sub-components such as the
DVD Intelligent Loader." Miller went on to say that worldwide demand is stronger than expected,
particularly in the DVD Player market.
In December, DVS completed the relocation of its headquarters to a new facility in Mountain View,
remaining within California's Silicon Valley. Miller said, "The move during the holiday period was a difficult
but a necessary cost-cutting action that will yield approximately $400,000 in cost savings per year." Miller
added, "Our management team remains intact, and fully committed to achieving our business plan in the
DVD market."
ABOUT DVS
Digital Video Systems, Inc. is a technology company specializing in the development and application of
digital versatile disc and related technologies. The company develops and markets DVD drives, DVD
Intelligent Loaders and DVD players including subassemblies and components, Video on Demand
Network products, and CD based Video Engine products for the consumer products, commercial video
and computer peripherals markets. Also under development is the DVD Video Engine product line.
Established in 1992, DVS is a publicly held company headquartered in Mountain View 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
DVS' business and the conduct of business by DVS in foreign countries, 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 8-K dated Nov. 13, 1998 and Form 10-QSB dated Nov. 16, 1998. For more
information on DVS' products, call 800/446-8823 or visit: www.dvsystems.com.
CONTACT: Access Communications
Mark Smotroff, 800/393-7737, ext. 270
or
Digital Video Systems, Inc.
John Smuda, 650/625-8226 |
