DVS Korea Receives Contract for Aftermarket Sales License Covering Asia/Pacific and Africa Regions

PALO ALTO, Calif., Nov. 30, 2004 -- Digital Video Systems, Inc., or DVS, , a global leader in DVD technologies, today announced that its subsidiary DVS Korea (DVSK) has received a contract to sell Visteon's Dockable Family Entertainment System(TM) to the automotive aftermarket in the Asia/Pacific and Africa regions. This contract extends the relationship between DVS and Visteon beyond existing product supply agreements to include sales initiatives by DVSK.

Under terms of the agreement, Visteon will continue to sell the Dockable Family Entertainment System(TM) in the U.S., Latin America, Australia and Europe markets. DVS' new sales distributor role will cover Asia/Pacific and African markets, in which DVS will market the co-branded system.

Visteon's Dockable Family Entertainment System(TM) is a premium portable/dockable DVD Player with an overhead docking station. Once the docking station is installed in the vehicle, the player can be easily docked for passenger entertainment or removed for indoor or battery-powered mobile operation.

"This agreement gives DVS Korea the opportunity to capture market share in the Korean, Japanese, Chinese, other Asian and African automotive aftermarkets," commented Tom Spanier, Chairman and CEO of DVS. "Visteon's Dockable Family Entertainment System(TM) offers versatility, superior operational capabilities and ease of use that make it attractive to automotive aftermarket customers worldwide."

About Digital Video Systems, Inc.

Established in 1992, DVS is a publicly held company specializing in the development and application of digital video technologies enabling the convergence of data, digital audio, digital video and high-end graphics. DVS is headquartered in Palo Alto, California, with subsidiaries and manufacturing facilities in South Korea and China and a subsidiary in India. Additional information may be obtained at www.dvsystems.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Any statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding opportunities presented by the new DVSK agreement with Visteon. Important factors that may cause actual results to differ include, but are not limited to, the timely availability of components, sufficiency of working capital, the impact of competitive products and services, the Company's ability to manage growth and acquisitions of technology or businesses, risks attendant to strategic agreements involving other companies, the effect of economic and business conditions, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Digital Video Systems, Inc. assumes no obligation to update these forward-looking statements, and does not intend to do so.

For further information please contact Larissa Licea, Digital Video Systems, Inc., 650-322-8108; or Sean Collins of CCG, 818-789-0100, for Digital Video Systems, Inc.