DVS Majority Shareholders Approved OPLI Investment Agreement; $4.5 Million Debts Converted to Equity

Business Wire, May 24, 1999

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 24, 1999--

Digital Video Systems, Inc. (Nasdaq: DVID) announced that its majority shareholders have approved the Investment Agreement with Oregon Power Lending Institution (OPLI), and that the $4.5 million dollars invested by OPLI to date in the form of loans to DVS, and the $2 million dollars invested by OPLI to date in DVS' Preferred Stock, has now been converted into DVS' Common Stock.

ABOUT DVS

Digital Video Systems, Inc. is a technology company specialized in the development and application of DVD (Digital Versatile Disc) and related technologies. Currently the Company's major products include DVD drives, DVD loaders (the core subassembly of DVD players), and Video Engines (intelligent video players) for the consumer, commercial, and computer OEM markets.

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, call 1-800-446-8823 or visit: www.dvsystems.com.