DIGS Inc. -- Soon to Be iVideoNow Inc. -- Names New Head of R&D.

Business Editors

ENCINO, Calif.--(BUSINESS WIRE)--May 19, 2000

Mark Chechelnitsky Will Spearhead Technical Support for

Commercial Launch of iVideoNow(TM) Internet Video Playback System

DIGS Inc. (OTCBB:DIGS), a supplier of multimedia and Internet communications solutions for corporations, today announced that Mark Chechelnitsky has joined the company as head of research and development with responsibility for the company's strategic Internet video initiative.

(Note: As previously announced, the company expects to complete changing its name to iVideoNow(TM) Inc., and trading symbol to VNOW, within the next few weeks.)

"We are very pleased to add a software developer of Mark's caliber and experience. He has an impressive track record of success as a Web developer with particular strength in video applications," commented Peter Dunn, president and chief executive officer.

"Mark will be responsible for leading technical support of our unique iVideoNow(TM) video screening player, which we expect to introduce before mid-year. In addition, he will formalize the development process including further enhancing the product with additional features and capabilities, as well as developing compatible applications."

Chechelnitsky most recently was a Web developer with Suia Technologies Inc. of Los Angeles, where he developed Internet-based applications for various companies including Citicorp Development Center. His experience also includes work as a Webmaster at UCLA and participation in Multimedia and Creative Technologies Projects at the University of Southern California's Computer Science Department.

Chechelnitsky earned his master of science degree in computer science at the University of Southern California. He received his bachelor of science degree in physics at Kishinev University, Kishinev, Moldavia.

"With the recent addition of key executives in finance and administration, legal affairs and now research and development, we are building the managerial and technical resources to support our aggressive growth strategy," Dunn added.

The company is dedicated to using the Internet to provide video on-demand as a marketing and promotional tool for corporate clients. For more than a year, the company has been working to develop the iVideoNow(TM) multi-window video playback application and the related iVNDS(TM) delivery system.

DIGS Inc. Names New R&D Head

The unique iVideoNow product offers viewers considerable flexibility as to what they view and at what quality. Users may screen up to 36 videos in the player's preview windows. The proprietary four-star quality system allows the viewer to select the quality level they wish for full screen viewing.

The iVideoNow clock feature detects the speed of the user's connection, computes the download time needed for each quality level based on the length of the video and displays the information to the user. The company sees broad marketing uses for its video player in many industries including entertainment (film, television and music), retail and travel, as well as in company intranets for internal communications.

DIGS Inc. (iVideonow(TM)), designs and develops complete multimedia and Internet communications solutions for corporations. Its Digital Corporate Profiles (DCP) subsidiary provides public companies with powerful communications tools including unique CD-ROMs designed for investor relations, environmental health and safety reporting and employee outreach.

The company serves such leading companies as Intimate Brands Inc., parent of Victoria's Secret; The Limited; The Cheesecake Factory; Del Webb Corp.; Mikohn Gaming Corp.; and ARCO (Atlantic Richfield). The DXF Design Inc. subsidiary provides a complete range of Internet, CD-ROM and print design services.

The company's corporate offices are located at 17327 Ventura Blvd., Suite 200, Encino, CA 91316. Telephone: [phone]; Fax: [phone]. For further information, visit the company's Web site at www.digsinc.com.

iVideoNow, DIGS, Digital Information Group, Digital Corporate Profiles, DCP, and IRCD are trademarks of DIGS Inc. Mikohn is a trademark of Mikohn Gaming Corp. The Cheesecake Factory is a trademark of The Cheesecake Factory Inc. ARCO and Atlantic Richfield are the property of their respective holders.

Certain statements in this news release may constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties, and other factors, which may cause the actual results, performance or achievement expressed or implied by such forward-looking statements to differ.