Digital Descriptor Systems announces financial results for the third quarter and nine months ended September 30, 1995.

LANGHORNE,Penn.--(BUSINESS WIRE)--Nov. 14, 1995--Digital Descriptor Systems Inc., (NASDAQ/Small Cap: DDSIU-Units, DDSI-Common, DDSIW-"A"Warrant, DDSIZ-"B"Warrant) announced today their financial results for the third quarter and nine months ended Sept. 30, 1995

Revenues for the third quarter of 1995 were $468,159, compared to $315,554 reported in the comparable period in 1994. The net loss was ($509,478), compared to an after-tax loss of ($264,710) last year. Loss per share for the third quarter in 1995 were ($.21), compared to ($.26) in 1994, based on the weighted average of 2,408,750 shares outstanding for the third quarter ended Sept. 30, 1995 compared to 1,000,000 shares outstanding for the similar period in the previous year.

Revenues for the nine months of 1995 were $1,963,861, compared to $1,065,421 reported in the comparable period in 1994. The net loss was ($547,310), compared to an after-tax loss of ($524,816) last year. Loss per share for the nine months ended Sept. 30, 1995, were ($.23), compared to ($.52) in 1994, based on the weighted average of 2,408,750 shares outstanding for the third quarter ended Sept. 30, 1995, compared to 1,000,000 shares outstanding for the similar period in the previous year.

Garrett U. Cohn, president of Digital Descriptor Systems Inc. stated, "Lower than expected revenues in this quarter are due to delays in shipments to us from our suppliers which reduced installations scheduled for the third quarter, which was delayed until our fourth quarter. Revenue Recognition continues as of this date to be effected by software accounting and the company is changing its method to conform to these new accounting requirements. Also, a non-recurring loss of $110,000 for professional fees was incurred." Cohn went on to say, "On the positive side, our backlog, as of the end of the third quarter, is up to $2 million from $1.5 million in the second quarter, up from $578,000 in the like period a year ago. Several new markets have opened up for us in Mexico, the Caribbean and Europe. Further, installations are up sharply to 38 from 21 a year ago."

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             Digital Descriptor Systems Inc. Financial Summary
                             (Unaudited)

              3rd Quarter      3rd Quarter     9 Months      9 Months
            Ended 9/30/95    Ended 9/30/94   Ended 9/30/95  Ended 9/30/94

Revenues:     $468,159        $315,554        $1,963,861    $1,065,421

Net Profit
 (Loss):     ($509,478)      ($264,710)        ($547,310)   ($524,861)

Net Profit
 (Loss) Per
 Share:          ($.21)          ($.26)            ($.23)       ($.52)

Shares Out-
 standing:   2,408,750        1,000,000         2,408,750    1,000,000

Digital Descriptor Systems Inc. develops, assembles and markets
computer installations consisting of software and hardware, which
capture video and scanned images, digitize the image, link the
digitized images to text and store the images and text on a computer
database or transmit the image and text by computer network or
telephone transmission to remote locations and other networks such
as LAN, WAN and RF.

CONTACT: Digital Descriptor Systems Inc.

Garrett U. Cohn, 215/752-0963

or

John De Negris Associates Inc.

Kimberly Militscher, 516/522-2630