Thursday August 6, 7:00 am Eastern Time Company Press Release
Digital Video Systems Ships Its First DVD-ROM Drives
Company Prepared to Meet OEM Demands With Latest 3rd Generation
Technology
LOS GATOS, Calif.--(BUSINESS WIRE)--Aug. 6, 1998--Digital Video Systems, Inc.
(NASDAQ:DVID - news) 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 will have the working samples of its 5.1XPlus drive available in September. 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. 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'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, the risks of competition and the enforceability of the Company's
intellectual property rights, risks relating to the development and market acceptance of other
products of DVS risks relating to the planned expansion 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 10-K dated July 14, 1998.
Contact:
Digital Video Systems, Inc.
John Smuda, 408/874-8226
johns@dvsystems.com
or
Access Communications
Mark Smotroff/Alisa Arnett, 415/904-7070 ext. 270/299
msmotroff@accesspr.com
aarnett@accesspr.com |
