DG Systems Appoints David G. Dietze Senior Vice President, Sales; AOL Time Warner Sales Executive Brings Proven Enterprise Sales Orientation to DG.

Business Editors

DALLAS--(BUSINESS WIRE)--Oct. 31, 2003

DG Systems, Inc. (Nasdaq: DGIT), the leading digital technology provider for managing and delivering short- and long-form audio and video content to broadcasters, today named former AOL Time Warner sales executive, David G. Dietze its Senior Vice President of Sales. Mr. Dietze replaces Mark Dunn, who resigned his position with the company earlier this month.

In this capacity, Mr. Dietze will oversee the national sales programs for DG's industry-leading video and audio delivery solutions and media asset management products. Mr. Dietze will report to Matthew Devine, DG's Chief Executive Officer.

Mr. Dietze brings over 13 years of enterprise sales experience to his new position as Senior Vice President of Sales, most recently serving as Vice President of Sales, Central Division for AOL Time Warner. In this position he oversaw AOL's local advertising sales across eight states, leading two Regional Directors, six Sales Managers and 35 account executives. During his tenure he was distinguished as the top producing Vice President of Sales for developing the sales team that was ranked first in the U.S. for nine of eleven quarters. Dietze was credited with expanding his division's revenue three-fold over three years through strategic sales leadership, developing a results-oriented sales team and addressing a range of diverse industries.

Dietze joined AOL Time Warner in 1999 and before that served for nine years, most recently as General Manager, Eastern Region for Source Media, the nation's largest provider of telephony-based interactive advertising services.

Matthew Devine, CEO of DG Systems, commented on the appointment, "Given the anticipated upturn in advertising and the many brands and advertisers that can benefit from the nation's largest digital delivery network, it is important that we have the best talent on board. David's demonstrated success in increasing revenues and expanding market share is a tremendous complement to our VP for National Sales, John Lipuma, who has brought DG strong industry relationships and knowledge. There remains an enormous potential to further develop industry acceptance of digital media asset management among broadcasters, advertisers and agencies, and as DG continues to expand its national footprint I believe the contributions of the sales team will further distinguish the Company from its competitors. We fully expect this team to deliver on its potential, attracting more marquis brands and advertisers to the benefits and efficiencies of a relationship with DG."

About DG Systems, Inc.

DG Systems and the Company's StarGuide division provide the standard in Digital Media Exchange services for the advertising and broadcast industries, featuring innovative satellite and Internet transmission technology solutions 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, 7,500 radio stations, and over 1,850 broadcast and cable television destinations with innovative delivery and management solutions for short- and long-form audio and video content. More information is available at www.dgsystems.com.

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 27, 2003.