DG Systems - ConfirMedia Partner to Offer Unequaled Media Asset Management Services for TV, Radio and Cable Advertisers.

DALLAS & SAN DIEGO -- DG Systems, Inc. (Nasdaq: DGIT):

--Bundled Product Offering Provides Enhanced Airplay Monitoring and Invoice Reconciliation Tools and Services

--DG Systems to Invest in Verance

DG Systems, Inc. (Nasdaq: DGIT) today entered into an exclusive agreement with the Verance Corporation and its subsidiary, ConfirMedia(TM), to enable third party airplay verification and advertising campaign reconciliation services across all major U.S. television, cable and radio networks and local television and radio stations. The agreement between the two companies allows DG to offer a new range of streamlined and additive services to its current clients, and also provides a unique opportunity to further expand its customer base.

Utilizing each company's proprietary network and data management systems, this innovative bundled service offering streamlines the workflow -- scheduling, watermarking, distribution, tracking and airplay verification -- between advertisers and media outlets. Once DG receives a commercial, a unique watermark is embedded, the spot is handled and distributed through the DG network, and the ConfirMedia(TM) technology detects airplay. On a real-time basis, national advertisers, agencies and media outlets can access data online to help effect changes - prior to airing and in-flight. Post broadcast, advertisers and agencies will be able to evaluate their media campaigns and buying strategies. Third-party detection and verification services also will be available, allowing media schedules to be reconciled to actual airplay.

Scott K. Ginsburg, Chairman and Chief Executive Officer of DG Systems commented, "The $90 billion radio, TV and cable advertising industries need media asset management tools to improve the way advertising is scheduled, broadcast, verified and ultimately paid for. By employing the DG network to handle and distribute advertising content and ConfirMedia technology to electronically detect airplay and mediate and reconcile advertising campaigns simultaneously, a one-of-a-kind solution will exist for national, regional and local advertisers as well as all electronic mediums. We will facilitate a change in the way the advertising industry does business and, as a result, each of our companies will benefit from an improved business model."

Steve Saslow, Chief Executive Officer of Verance, parent company of ConfirMedia(TM), added, "We are excited to join DG Systems, the leader in commercial distribution, to provide a workflow solution that combines two best in class advertising services into one. This compelling alliance provides a powerful reason for broadcasters, advertising agencies and advertisers to take advantage of our industry knowledge, technology and network to achieve media and financial transparency for all advertisements, promotions and programming."

"Using data from agencies, broadcasters, cable operators and verification interactively, we solve industry accountability issues and pave the way for agency media people to focus on more of the high-value analytical work that is necessary in our fragmented media environment. The integrated service will expand ConfirMedia(TM)'s value to advertisers and broadcasters alike," Mr. Saslow explained. "What this means is that broadcasters will have precise control of their inventory; the need for makegoods will be drastically reduced; invoices will be meticulously matched; and media bills paid faster."

DG Systems also announced that it is making a $5 million strategic equity investment in Verance in a private placement of convertible preferred stock. As part of the transaction, Verance Corporation will issue a warrant to DG Systems, Inc. to allow it to increase its equity stake in the future.

Mr. Ginsburg added, "A large number of agencies as well as leading national brands have recently adopted or are about to adopt watermarking standards as they acknowledge the efficiencies and accountability benefits of these technologies. It is our belief that the Verance Corporation and its ConfirMedia(TM) products are well positioned to emerge as industry standards. To reach this goal, DG Systems will offer other media distribution companies sub-licenses to distribute commercials using the ConfirMedia watermarking technology. After all, serving advertisers' needs is our primary responsibility, and using DG as the clearinghouse for quality assurance is what our media partners can now rely upon as we give birth to this new technology."

ConfirMedia(TM) provides media information and campaign reconciliation services that replace time-consuming, after-the-fact, error-prone and costly processes in support of affidavit reconciliation for the broadcasting and advertising industries. ConfirMedia(TM) employs sophisticated and proprietary technologies to automate the accurate monitoring of airplay of advertising and other broadcast content and delivers rapid, highly accurate, low cost verification of media contract fulfillment. Media outlets that subscribe to ConfirMedia services will be able to eliminate a large overhead burden and simultaneously accelerate receivables collections. Agency subscribers are also able to eliminate costly overhead while improving the performance of their marketing and advertising campaigns.

"Customers will benefit from a web-based tool that automates the process of verifying commercial airplay data and reconciles invoices between broadcasters and advertisers", according to Mr. Saslow. "Not only will advertisers and agencies know whether their broadcast schedules were achieved as planned, they also can be apprised of this daily, within 24 hours of scheduled airtime."

"It is of significance to note that DG's technologically advanced DG Spot Box is the centerpiece of our integrated service strategy, as it resides at thousands of media outlets and integrates the watermarking function at the station level," Mr. Ginsburg continued. "The ConfirMedia proprietary technologies, national verification network, and data management services take advantage of DG's leading digital delivery network - the industry's largest, most advanced and robust system for electronically distributing television and radio commercials. DG's success with the Universal Deployment initiative - placing a DG Spot Box in every media outlet in the U.S. - allows the new bundled service offering to reach an unparalleled footprint of the U.S. electronic media."

"We will offer advertisers and media outlets 'Spot Box Commercial Confirmation Reports' which indicate whether commercial material transmitted to DG Spot Boxes was received in correct form and properly watermarked, the time and date of 'play out' of such Spots by the media outlet, and other relevant metadata included in the embedding process," according to Mr. Ginsburg. "Providing these 'Spot Box Commercial Confirmation Reports' will lend a degree of credibility to the verification and reconciliation process that has not been available in the marketplace. If a commercial has been embedded with a watermark and it has been confirmed by the DG Spot Box as properly received, the media outlet can be virtually assured that when it plays over the air, that event will be observed by the ConfirMedia detection network."

Mr. Ginsburg concluded, "Our partnership with ConfirMedia(TM) is part of our broader strategy to provide efficient tools for ad agencies, advertisers, broadcasters, national networks and cable operators. Universal deployment of the new DG Spot Box, the expansion of satellite capacity and broadband Internet connectivity, and the roll out of our new order entry and management system, DGConnect, all are designed to create value for customers and help them use resources more efficiently. Partnering with a technology leader like ConfirMedia(TM) to streamline the entire workflow process between advertisers and media outlets is another example of our efforts to deliver on that strategy."

About DG Systems, Inc. (www.dgsystems.com)

DG Systems and its StarGuide and SourceTV divisions provide the standard in Digital Media Exchange services for the advertising and broadcast industries, featuring dependable satellite and Internet transmission technology and a suite of digital media asset management tools. DG's extensive digital network is the largest in the advertising and broadcasting industries, reaching more than 5,000 advertisers and agencies, over 3,200 television, cable, and network broadcast destinations and over 10,000 radio stations with innovative delivery and management solutions for short-and long-form audio and video content. DG Systems is based in Irving, Texas, with offices located in New York City, Detroit, Los Angeles, Chicago, Boca Raton, Wilmington, Ohio and Louisville, Kentucky.

About Verance and ConfirMedia(TM) (www.verance.com)

ConfirMedia(TM) is a premier broadcast data service that provides the means to independently verify actual airplay of designated advertising or other audio-visual content on a next-day basis across all major U.S. television, cable and radio networks, and all major local television and radio stations. Employing parent company Verance's patented audio watermarking technologies, proprietary monitoring network and data management systems, ConfirMedia(TM) tracks and reports broadcast airplay of encoded content with pinpoint accuracy. ConfirMedia(TM) is based in New York, with a technology center in San Diego and field offices in New York, Los Angeles and Chicago.

This release contains forward-looking statements relating to the company, including the expansion of its digital distribution network, and the demand among certain clients for digital audio and video delivery services. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to DG Systems' business are set forth in the company's Form 10-K filed with the Securities and Exchange Commission on March 12, 2004.