Chairman/CEO of Dense-Pac Microsystems Has Announced His Decision to Resign.

GARDEN GROVE, Calif.--(BUSINESS WIRE)--Aug. 4, 1998--Chairman and Chief Executive Officer Uri Levy of Dense-Pac Microsystems Inc. (Nasdaq:DPAC) takes this opportunity to announce to shareholders that he has submitted his decision to resign from Dense-Pac this morning to the Board of Directors and that decision is final.

Levy stated Dense-Pac has accomplished tremendous technology improvements in three-dimensional stacking in the last 18 months and has positioned itself to be a leader in automated three-dimensional packaging for commercial applications. The company, if allowed to proceed on its current path, is positioned for success. All elements are in place to work independently.

During the last 18 months, Dense-Pac has made terrific strides developing a new panel stacking process (which Levy co-invented), achieved ISO 9001 certification in under six months, expanded the company's product line, instituted a new business strategy, rebuilt a much needed foundation with data tools to better market Dense-Pac's products, and introduced several new commercial OEM products to new OEM customers.

Levy cited his desire to expand exposure of product mix in emerging markets, such as the Internet and other state-of-the-art technologies. As stated in his letter to shareholders, there is a need to diversify beyond memory-related products into broader technological bases in order to succeed in high-tech in the upcoming millennium.

It is somewhat a new and unfamiliar direction for Dense-Pac. Levy feels there is a difference of opinion with the original members of the Board of Directors as to the diversification strategy of Dense-Pac, which has propelled his decision to resign to pursue his own plans for diversification into emerging markets and not force his strategy on potentially unwelcomed recipients.

Levy will offer to the company his services to help initiate a search for a new CEO and brief the candidate selected. During this transition period, Levy will begin to pursue other opportunities as time permits and not on company expense. Levy wishes good luck to the company and its employees in its future endeavors and feels that his decision is of benefit to both parties.

Dense-Pac Microsystems is a technology company that specializes in the design of proprietary and patented three-dimensional high-density memory products, Internet commerce solutions, printer media devices, custom memory subsystems, and development software for OEM manufacturers of laser printers and electronic forms. The company's Web site is at www.dense-pac.com. CommercePac, a division of Dense-Pac provides Internet commerce solution for businesses and retail operations. Their Web site is at www.commercepac.com.

The above statements are forward looking statements and projections (including statements concerning plans and objectives of management for future operations and statements concerning earnings expectations) are based on management's belief as well as assumptions made by, and information available to management. Although management believes that its expectations are based on reasonable assumptions, there can be no assurances that the company's financial goals will be realized. Numerous factors may effect the company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the company. Some of these factors include, without limitation, demand and acceptance of new and existing products, technological and product obsolescence, availability of semiconductor devices at reasonable prices, competitive factors and the availability of capital to finance growth. These and other risks are discussed in greater detail in the company's filings with the Securities and Exchange Commission.

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