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DG Systems Upgrades Network with Unparalleled Service Options and Capacity for Advertisers.

DALLAS -- DG Systems, Inc. (Nasdaq:DGIT):

--Completes DG Spot Box(TM) Fleet Upgrade Ahead of Schedule

--Universal Deployment Advancing With Over 3,000 Video Destinations Now Online, Providing Access to 95% of Top-Rated TV Stations in 100 Largest Markets

DG Systems, Inc. (Nasdaq: DGIT) has completed a planned upgrade of its advertising distribution network two months ahead of schedule. A new fleet of DG Spot Boxes(TM) now connects over 3,000 TV stations, cable systems or broadcast and cable networks to the DG network operations center.

"The physical improvements made to DG Systems' network translate into a faster, smarter and more robust offering for our advertising customers, as well as for our cable and television affiliates," remarked Scott K. Ginsburg, Chairman and CEO of DG Systems. "By replacing our installed base of equipment with the DG Spot Box - combined with the universal deployment initiative - the DG network has become the gold standard for the ad distribution industry."

"With these upgrades, our network has greater capacity and flexibility than ever before," Mr. Ginsburg stated. "The digital environment and particularly the HDTV format require substantially more network distribution capacity than analog formats, and DG has re-designed its network specifically to accommodate these advanced technologies. The extra capacity and broad reach of DG's network give our customers unprecedented levels of bandwidth reserve, distribution coverage, convenience and reliability."

Anchoring these capabilities is the new DG Spot Box, the advertising industry's most powerful conduit for electronically distributing spots. Whether measured by the versatility of digital delivery options, storage capacity or tracking features, DG Systems' Spot Box network is clearly the best alternative to any other advertising distribution solution. The DG network reliably distributes an advertisers valuable media assets via the Internet, satellite or by physical means. Other important components of the Spot Box network include a clear and intuitive interface, secure firewall protection, multiple storage options, and software that optimizes network performance.

"It is interesting to note that we already are seeing traffic increases on the DG network due to these initial improvements," continued Mr. Ginsburg. "Traditional physical deliveries via our dub and ship facilities are expected to decline dramatically."

"At this juncture," Mr. Ginsburg stated, "we want to emphasize that the Spot Box upgrade is only the first step in our strategy to improve DG's technology and service platform. Other important advances to the DG Spot Box network will be announced later this month as we continue our march towards getting the network well prepared for the challenges of an all digital environment."

The Company's universal deployment initiative, launched last summer, will extend the network's span to all TV stations, cable systems and broadcast and cable networks. Achieving universal deployment of the DG Spot Box will further improve the efficiency and reliability of the DG network.

Mr. Ginsburg concluded, "Today we reach over 95 percent of the top-rated broadcast TV destinations in the nation's 100 largest media markets. Yet, we continue to aggressively pursue additional and important affiliates through universal deployment with cable systems and cable and television networks. Universal deployment means better service as well as a more attractive economic proposition for DG customers. It remains a primary focus for us in 2005.

"Karen Dealy, Senior Vice President of DG's Affiliate Relations group, and a team of nineteen professionals have done an outstanding job of cultivating new TV, national network and cable partners. Their dialogue is helping DG create dynamic advertising distribution solutions for advertisers who are developing strategies for the all-digital and HDTV environment."

About DG Systems, Inc.

DG Systems and its StarGuide divisions provide the standard in Digital Media Exchange services for the advertising and broadcast industries, featuring dependable satellite and Internet transmission technology 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, over 3,000 television, cable, and network broadcast destinations and over 10,000 radio stations 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 12, 2004.
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Publication:Business Wire
Date:Feb 4, 2005
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