DVS Announces New DVD Loaders and Booming Demand for Its Products; $15 Million Orders Received For Delivery Through September; 50% Backed by Payment Guarantees
06/23/1999 Business Wire
(Copyright (c) 1999, Business Wire)
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 23, 1999--Digital Video Systems, Inc. (Nasdaq:DVIDC) announced that the Company's new loader products, model DSL-600A and DSL-600J, have been approved by 20 customers including major DVD player OEM's in China and Taiwan.
The DSL-600A supports the ATAPI interface and the DSL-600J supports the I(2)S interface. These new generation loaders are capable of reading DVD discs and a variety of CD discs such as Video-CD, Super VCD, CD-R, CD-RW & CD-Audio discs. These loaders also offer long-life and durability because data are read from the disc with a laser, without physical contact with the disc.
DVS also announced that purchase orders received to date for delivery through September 1999 have reached US$15 million. Furthermore, 50% of these orders are supported by payment guarantees such as irrevocable letters of credit.
In addition to the DVD-ROM drive business, DVS expects that the loader products will be a major business area for the Company. Supported by the funding from OPLI since late 1998, DVS has been developing the loader products in cooperation with strategic partners in the MPEG decoder chipset market. As a result of active marketing and field engineering with potential DVD player OEM customers beginning in March 1999, the DVS loader product sales have dramatically increased in the second quarter of 1999.
DVS' CEO Mali Kuo said, "This exciting development in engineering, marketing, and sales is the result of strategic planning, hard work, and cooperation between DVS' U.S. headquarters and its Korea operations. I am very pleased to see the Company working as one integrated team to achieve this accomplishment."
ABOUT DVS
Digital Video Systems, Inc. is a technology company specializing in the development and application of Digital Versatile Disc (DVD) and related technologies. The Company develops and markets DVD-ROM drives, DVD Intelligent Loaders, 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 traded company headquartered in Mountain View, Calif., with a branch office in Taiwan and 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, 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-QSBA dated January 18, 1999 and Form 10-QSB dated February 23, 1999. For more information on DVS' products, email to info@dvsystems.com, call 650/564-9699 or visit: www.dvsystems.com.
Contact: CONTACT: Digital Video Systems, Inc., Mountain View Investor Relations, 650/564-9699 info@dvsystems.com
08:01 EDT JUNE 23, 1999
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