VSI Enterprises and All Systems Team Up for North Kansas City Hospital Project

Business Wire, July 26, 2000

Business Editors

NORCROSS, Ga--(BUSINESS WIRE)--July 26, 2000

VSI Enterprises, Inc. (OTCBB:VSIN) announced today that it has been selected by All Systems Audio-Visual, Inc., an integration company based in Kansas City, to provide a control system solution for the North Kansas City Hospital. The system is currently being installed.

VSI will provide its Omega(TM) software-based control system for use in the hospital's Digital Operating Theatre project. The control system will be used to manipulate cameras, projection screens and other audio/visual equipment in the hospital's Auditorium Conference Room. The room, used primarily for teaching large audiences, will be connected via cameras to an adjacent studio, as well as an operating room located in the hospital.

"For the North Kansas City Hospital project, we needed a reliable, flexible and easy to use control system," states Bob McConchie, President of All Systems. "The reliability of Omega(TM) and the practicality of the on-screen controls provided us with the perfect solution. By teaming with VSI, we can make extremely powerful presentation and communication rooms easy enough for anyone to use." McConchie adds, "VSI writes great software. We plan to use Omega(TM) in more projects this year, and are also looking forward to using VSI's Voyager."

Voyager is the code name for VSI's next generation control system scheduled for release in the 4th quarter of 2000. Voyager is based on multi-stack, CycleFree(TM), kernel technology licensed from VSI's strategic partner, ACIS, Inc.

The hospital project marks the third agreement between All Systems and VSI. Earlier in the year, VSI provided videoconferencing control systems for a major telecommunications company through two deals with All Systems. The projects connected six office locations in Kansas City and Atlanta.

Rick Egan, CEO of VSI Enterprises comments, "We are very excited about VSI's ongoing partnership with All Systems. The recent efforts with North Kansas City Hospital and previous contracts have helped strengthen our relationship. As a systems integrator, All Systems provides their clients with a high level of sales, engineering and service support. Supplying control systems to such audio/visual integrators is a key aspect of VSI's new direction. Our successful partnership with All Systems validates our strategy."

All Systems Audio-Visual, Inc. provides solutions to a number of clients in the healthcare, educational, religious, corporate, and industrial/commercial fields. Consultants specialize in a variety of high-tech, low voltage systems such as security, fire-alarm, life-safety, intercom, nurse-call, telecommunications, network multimedia management, and audio-visual. All Systems designs simple methods of controlling complex applications through the use of cutting edge technology. This innovative approach to integrated systems defines their overall corporate philosophy.

VSI Enterprises, Inc. develops, manufactures, markets and supports software based audio/visual control systems and videoconferencing products that operate on PC platforms. VSI's customers include Fortune 1000 corporations, governmental agencies, health care providers and educational institutions. For more information, access the VSI Enterprises, Inc. home page as follows: www.vsin.com. CycleFree(TM)is a trademark of ACIS, Inc. Omega(TM)is a trademark of VSI Enterprises, Inc.

Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future sales and business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition, our ability to complete the development and launch of "Voyager," and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including our Annual Report on Form 10-K and our quarterly reports on Form 10-Q.