DG Systems Becomes Largest Digital Distribution Network for Television and Radio Advertising; 725 Television Stations Now On-Line for Same Day Service.

Business & Technology Editors

SAN FRANCISCO--(BUSINESS WIRE)--March 17, 2000

DG Systems (NASDAQ: DGIT) announced today that the company has reached a major industry milestone, with 725 television stations on-line and currently able to receive advertising spots digitally over the DG Systems video distribution network. This increased television station presence -- combined with the company's existing presence in over 7,000 radio stations -- makes DG Systems the largest single digital distribution network for both radio and television spots.

DG Systems is now able to provide television advertisers with same-day digital delivery for their national and regional buys at similar penetration levels that radio advertisers enjoy. Using DG's digital network, both television and radio advertisers can utilize "just-in-time" advertising to respond effectively to competitive campaigns or changing market conditions by delivering new creative throughout the country within a matter of hours.

Bob Howard, Vice President of Sales and Marketing, commented, "This milestone gives our customers unprecedented reach when they need fast and reliable TV spot delivery. DG customers can digitally deliver broadcast-quality spots within hours to every major market. And if they use our exclusive Internet ordering system, DG Online, they achieve even greater speed and control in distributing spots." With DG, audio spots reach their broadcast destinations in as little as one hour; video spots in as little as four hours.

DG Systems' video delivery system compresses video files using MPEG video compression and delivers spots over digital satellite. The television stations on the buy receive their spots via their DG Systems-supplied Advantage Servers. The two-way system checks for errors and provides the sender with positive delivery confirmation. It is the most efficient, cost effective, and manageable means to distribute video spots, and it provides quick-turnaround and broadcast-quality output to every station. This method eliminates missed or late deliveries resulting from bad weather, logistical breakdowns, or missed analog satellite feeds.

DG has been the leading provider of digital network services to the broadcast industry since 1991, and has been an active part of the industry-wide trend toward 100% digital broadcasting. In the upcoming quarters, DG will continue to develop and release strategic enhancements to aid advertisers and broadcasters in going digital.

DG Systems operates a nationwide digital network for distributing audio and video content that links thousands of advertisers and hundreds of advertising agencies with approximately 7,000 radio and 725 television stations across the United States and Canada. DG Systems can be reached at 415-276-6600 or at www.dgsystems.com.