DTS to Supply Network Access Equipment to Nextel.

ATLANTA--(BUSINESS WIRE)--June 17, 1998--

Wireless Service Provider Widely Deploys FlexT1(R)

in Its Network

Digital Transmission Systems, Inc. (DTS) (NASDAQ: DTSX; BSE and PHLX: DTS), a leading telecommunications equipment manufacturer, and Nextel, a national supplier of wireless services, headquartered in McLean, Va., jointly announced today that FlexT1 equipment from DTS has been chosen to be widely deployed throughout the Nextel network.

The plan was developed by both companies and will now lead to full scale deployment by Nextel of FlexT1 products from DTS in order to provide standardized CSU functionality and T1 performance monitoring throughout its network. In addition, the FlexT1 architecture provides the capability to support future Nextel network requirements. DTS and Nextel have partnered previously, but this plan will lead to a larger and longer commitment between both companies to standardize on a product format especially suited for Nextel's network development.

"Nextel is committed to delivering a powerful new level of high quality communication services and the networking equipment from DTS will help us accomplish that," commented Gary Ottosi, Vice President of Network Operations for Nextel. "We chose DTS products because of their functionality, expandibility, reliability and competitive price."

Nextel has approximately 1.3 million digital subscribers and specialized mobile radio licenses covering 250 million pops over 98 percent of country's population. Nextel Communications provides wireless service by deploying Enhanced Base Transceiver Systems (EBTS). These EBTS sites communicate with a Mobile Switching Office (MSO) through the use of dedicated Extended Super Frame formatted T1 facilities. The FlexT1 product family accepts voice signals from cell site radio equipment and signals from other sources such as data services and then transmits them back to Nextel's MSO. The advanced diagnostic features of the FlexT1 will allow Nextel to manage and troubleshoot its network rapidly.

"Nextel will use this equipment to minimize the amount of customer downtime associated with intrusive testing, lower mean time to repair and decrease possibilities of dispatching unnecessary personnel to the EBTS site," continued Ottosi.

"DTS is proud to be an integral part of the expansion of Nextel's guaranteed all digital national network," said Woodrow Cannon, Vice President of Marketing and US Sales for DTS. "Nextel is an industry leader in voice, paging, and messaging services, providing cutting-edge technology. Nextel wanted to maximize customer up-time and decrease repair times and it found that the FlexT1's advanced diagnostic and testing capability provides the solution. The FlexT1 units, besides providing normal CSU functionality, enables Nextel to extend network access functionality through multiple slots in the basic chassis. In addition, its compact size and distributed architecture offers significant space savings at the cellsite," concluded Cannon.

The FlexT1 Product Family allows companies to provide low-cost, high-quality network access multiplexing and enhanced services, including voice and high-speed data in a compact, scalable package. This single, integrated solution offers the functionality of add/drop multiplexers for efficient bandwidth management. FlexT1 products integrate voice signals from cell site radio equipment and signals from other sources (such as data services) and then transmits them back to Mobile Switching Offices (MSOs) of wireless service providers. The advanced diagnostic features of the FlexT1 also allow companies to manage and non-intrusively troubleshoot their networks rapidly.

Note: This news release, other than historical financial information, may consist of forward looking statements that involve risks and uncertainties, including, but not limited to, the timely availability of new products, the impact of competitive products and pricing and delays in the receipt of orders or in the shipment of products, perhaps causing quarterly fluctuations in results, and the other risks detailed in the Company's Securities and Exchange Commission reports and filings, including the report 10-KSB for the year ended June 30, 1997 and the SB-2 registration statement of the Company that became effective March 4, 1996. Actual results may vary materially.

Founded in 1990 and headquartered near Atlanta, DTS designs, manufactures and markets components to build, access and monitor high-speed telecommunications networks worldwide. The Company's primary customers include domestic and international wireless service providers, telephone service providers and private wireless network users. The Company's products include the FlexT1(R) (domestic) and FlexE1(TM) (international) integrated network access product lines; FlexSentry(TM) network control and management systems and the FlexAir(TM) and SKYPLEX(R) wireless spread spectrum digital radio products.

For more information about DTS and its products, call 1-800-FLEX-DTS (1-800-353-9387) or visit the corporate Web site at http://www.dtsx.com.

CONTACT: Digital Transmission Systems, Inc.

Ernie Bahm, 770/798-1300 ext. 238

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