DG Systems Announces Commitments for a $10.8 Million Private Placement.SAN FRANCISCO--(BUSINESS WIRE)--Aug. 5, 1998--Digital Generation Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM:DGIT), today announced that it had received subscriptions from certain affiliates of its current institutional investors to purchase approximately 3,900,000 shares of common stock of the Company for nearly $11,000,000 in a private placement transaction. The Company has not determined whether to accept the full amount of the subscription. Hank Donaldson, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DG Systems stated, "DG has garnered additional backing from our valued partners to support our growth needs. The funds will be utilized for the development and expansion of our Internet driven and other service offerings and for other business purposes." Upon closing of this private placement, the Company believes its net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". will exceed the level required for continued listing on the NASDAQ National Market and it anticipates, but cannot be assured of, a favorable determination as to whether the Company may continue to be listedon the NASDAQ National Market. Digital Generation Systems, Inc., has developed and operates both a nationwide, value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. digital network and Internet product linking hundreds of advertisers and advertising agencies with more than 6,500 radio and television stations across the United States. The Company's fault-tolerant network operations center See NOC. Network Operations Center - (NOC) A location from which the operation of a network or internet is monitored. Additionally, this center usually serves as a clearinghouse for connectivity problems and efforts to resolve those problems. delivers audio, video, image and data content, which facilitates transactions among advertising industry participants. DG Systems' URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. is www.dgsystems.com. Except for historical and factual information, this release may contain forward-looking statements relating to the Company, including the Company's continued listing on the NASDAQ's National Market. 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 System's business are set forth in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 31, 1998 and the Company's Form 10-Q Form 10-Q See 10-Q. filed on May 15, 1998. Note to Editors: DG Systems is a trademark of Digital Generation Systems, Inc. All other trademarks are property of their respective holders.
CONTACT: Digital Generation Systems, Inc.
Paul Emery, 415/276-6600
or
Lippert/Heilshorn & Associates
Lillian Armstrong, 415/433-3777
Kris Otridge, 415/433-3777
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