DVS RECEIVES NASDAQ STAFF LETTER

 
     
  Palo Alto, CA., 04/26/05

Digital Video Systems, Inc., or DVS, (Nasdaq: DVID), announced that it received a letter from Nasdaq dated April 19, 2005, stating that the Company was no longer in compliance with the shareholders’ equity/market value of listed securities/net income requirement as set forth in Marketplace Rule 4310(c)(2) – Qualification Requirements for Domestic and Canadian Securities. The Staff’s letter notified the Company that Nasdaq’s Listing Qualifications Panel (the “Panel”) will consider this matter in determining whether continued listing on The Nasdaq SmallCap Market is appropriate. No date has been set for the Panel to meet to consider this issue.

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 the strategic direction of DVS and DVS Korea, the benefits resulting from a change in management, DVS’s products and its market position and business activities proposed for India. Important factors that may cause actual results to differ include, but are not limited to, the timely availability of components, sufficiency of working capital, the impact of competitive products and services, the company's ability to manage growth and acquisitions of technology or businesses, 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 DVS

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.



For additional information please contact:

Digital Video Systems, Inc.
430 Cambridge Ave., Suite 110,
Palo Alto, CA 94306
Tel: 650.322.8108
Fax:650.322.8109

DVS Contact:
Larissa Licea
Office: 650.322.8108 X106
Cell: 408-712-4165
E-Mail: ir@dvsystems.com

Investor Relations Contact:
Sean Collins, Partner
CCG Investor Relations
(818) 789-0100, ext. 202.
E-Mail:
sean.collins@ccgir.com