08-31-2006

DIGITAL VISION INC. ANNOUNCES 1ST HALF 2006 RESULTS

Quarter-on-quarter achievement highlights include 43% gross profit growth,
31% shipment increase, 28% revenue growth *

Hong Kong, August 31, 2006 – Digital Vision Inc. (DVi) today announced its business results* for the first half of 2006. For the half ended July 31, 2006, gross profit increased 43% quarter-on-quarter, with revenue up 28%. This was driven by growth in product shipments, to almost 1 million units, representing a quarter-on-quarter rise of 31%.

DVi grew shipments of its flagship consumer electronics products, integrated circuits (ICs) and hard disk drives (HDDs), by 112% and 19% respectively, and all were shipped for consumer devices such as MP3 players, personal media players, DVD recorders, and more.

In the first half of 2006, DVi won 10 new customers, bringing its total customer base to approximately 150, mostly based in China, Hong Kong and the rest of North Asia. DVi also extended its product range by entering into new supplier agreements with a tier one memory manufacturer and a key manufacturer of small form factor displays. With these new agreements in place, DVi now provides the complete array of major components used in consumer electronics applications, making the company a key partner for device manufacturers across the board.

Commenting on the results, Pete Andreyev, chairman of DVi, said, “We exceeded our company’s and shareholders’ expectations in all areas and have made good progress on our strategic initiatives to enter new markets and increase our customer base. We will build on this success in the second half of the year, continuing to grow and ramp product shipments every quarter, to improve operational efficiency, and targeting to win at least one major consumer electronics account.”

DVi’s vision is to be an industry leader in supplying innovative solutions and major components for the burgeoning digital video and audio markets, via the significant base of OEMs, ODMs, system integrators and retailers located in China.?Additional information can be found at www.dvi.com.hk.

* As a privately held company, DVi does not release detailed financial results. The figures within this statement are non-audited.

About Digital Vision Inc.
Digital Vision Inc. (DVi) is a leading Consumer Electronics (CE) company with over ten years of experience. DVi's operations commenced in 1995 as part of Vision Technology Corporation before being spun off as a separate privately held Hong Kong company in 2006. DVi's vision is to be an industry leader in supplying innovative turnkey solutions and major components for the digital video and audio markets via OEMs, ODMs, system integrators and retailers.

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Media Contacts:
Elizabeth Underhill / Wendy Kam
Weber Shandwick Worldwide
+852-2533-9913 / 2533-9928
eunderhill@webershandwick.com / wkam@webershandwick.com

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