Digital Video Systems Takes Ownership Of Manufacturing Facilities In
China; Buyout Gives Silicon Valley-based Company Additional Control,
Profit Centers
PANYU, China--(BUSINESS WIRE)--Jan. 20, 1998--In a move that delivers greater control of its own growth and
capabilities, Los Gatos, Calif.-based Digital Video Systems, Inc. (DVS) (NASDAQ:DVID) has acquired 100%-percent
economic control of it's manufacturing arm -- an additional 49-percent -- in Panyu Municipality, Guangdong Province, China.
Effective immediately, the acquisition gives DVS sole ownership which will enable the company to put in place its own
management. The team will include Charlie Peng, Manager of Operations. DVS founder Dr. Edmund Sun will serve as
President of the Panyu plant while U.S. President and COO Tom Parkinson will double as CEO of the facility. "Having total
control of our manufacturing is essential for us to ensure the sort of quality control necessary for developing and manufacturing
world-class products as well as increasing the manufacturing product capacity to 50,000 Video CD players or DVD players a
month," said DVS' Tom Parkinson. "More than ever, we're encouraged about DVS' capacity to offer cost effective digital
video solutions for the global professional, consumer and OEM marketplaces." As DVS' business in China and other world
markets continues to grow, this development fits in perfectly with the company's vision of being a major supplier of home
entertainment equipment for the consumer and professional electronics industries. DVS currently produces Video CD players,
power amplifiers and speakers sold under Tenonics and other OEM brands throughout China.
About DVS
Digital Video Systems develops and markets DVD players, Video CD players, including subassemblies and components,
DVD products, Video on Demand network products, kiosk products, digital ad insertion products, and MPEG encoding and
authoring products for entertainment, business and educational uses. Established in 1992, DVS is a publicly held company
based in Los Gatos, Calif., with branch offices in Suwanee (Metro-Atlanta), Georgia; Taipei; Tokyo; Hong Kong; and Panyu
Municipality, Guangdong Province, China. In the United States, Digital Video Systems, Inc. recently acquired Synchrome
Technology, Inc. which develops innovative and leading edge products for the multimedia PC market. For more information
on DVS, contact Digital Video Systems, 160 Knowles Drive, Los Gatos, Calif., 95030 or call 408/874-8200. 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's
strategy, proposed sales of DVS's products, markets, and the development of DVS's products. DVS's 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 patents and other intellectual property rights, risks relating to the development
and market acceptance of products of DVS, and risks relating to the planned rapid growth of the business of DVS 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 its Current Report on Form 8-K dated Jan. 7, 1997.
Note to Editors: DVS is a trademark of Digital Video Systems, Inc. All other trademarks are the property of their respective
owners.
CONTACT: Digital Video Systems, Los Gatos
Diana Nelson, 408/874-8206
diana@dvsystems.com
or
Access Communications
Mark Smotroff, 415/904-7070 ext. 270
msmotroff@accesspr.com
Anne Magor, 415/904-7070, ext. 288
amagor@accesspr.com
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