Palo Alto, CA.,
Digital Video Systems, Inc., received a letter on April 1, 2005, (the "Letter") from The Nasdaq Stock Market
Listing Qualifications Department (“Nasdaq staff”) indicating that the Company has complied with all terms of the
Nasdaq Listing Qualifications Panel (“the Panel”) decision dated January 6, 2005.
Those terms included the Company evidencing a closing bid price of at least $1.00 per share on or before
February 23, 2005 and for a minimum of ten consecutive trading days thereafter.
The Letter further stated that the Company has resolved the concerns and additional deficiencies raised by the Nasdaq
staff in a letter dated March 14, 2005. Those concerns and deficiencies related to compliance with the Nasdaq’s
shareholder approval requirements, shareholders’ equity/market value/net income requirements, as well as board of
directors and audit committee requirements.
The Letter also noted that the Panel has determined to condition the Company’s continued listing on The Nasdaq SmallCap
Market on meeting minimum shareholders’ equity requirements. The condition states that the financial statements
contained in each of the Company’s periodic reports for periods ending on or before March 31, 2006 must evidence
shareholders’ equity of at least $2,500,000; and that if, during this monitor period, the Company should fail to
meet the shareholders’ equity requirement, or otherwise fail to satisfy any other requirement for continued listing,
the Panel will promptly consider the reasons for such failure and thereafter render a determination with respect to
the Company’s continued listing on The Nasdaq Stock Market, which could result in the delisting of the Company’s
securities from The Nasdaq Stock Market.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
Any statements made in this release that
are not historical facts contain forward-looking information that involves risks and uncertainties. These forward-looking
statements include, but are not limited to, statements regarding DVS's continued ability to meetThe Nasdaq SmallCap Market
listing requirements. Other important factors that may cause actual results to differ include, but are not limited to,
financial performance of the Company and the success of future financing efforts, ability to resolve litigation involving
the former Chief Executive Officer, the effect of economic and business conditions, and other risks detailed from time to
time in the Company's filings with the Securities and Exchange Commission. Digital Video Systems, Inc. assumes no
obligation to update these forward-looking statements, and does not intend to do so.
About Digital Video Systems, Inc. Established in 1992, DVS is a publicly held company specializing in the
development and application of digital video technologies enabling the convergence of data, digital audio,
digital video and high-end graphics. DVS is headquartered in Palo Alto, California, with subsidiaries and
manufacturing facilities in South Korea and China and a subsidiary in India. Additional information may be
obtained at www.dvsystems.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
For additional information please contact:
Video Systems, Inc.
430 Cambridge Ave., Suite 110,
Palo Alto, CA 94306
Office: 650.322.8108 X106
Investor Relations Contact:
Sean Collins, Partner
CCG Investor Relations
(818) 789-0100, ext. 202.