Digital Dispatch Systems Inc.

Digital Dispatch Systems Inc.

August 27, 2007 08:00 ET

Digital Dispatch Enters South African Market

RICHMOND, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2007) - Digital Dispatch Systems Inc. (TSX:DD) and Durban, South Africa-based Emcom SA (Pty) Ltd. have entered into an agreement whereby Emcom will purchase Vector 530™ mobile data terminals from Digital Dispatch for its client Eskom, South Africa's primary electricity supplier. Emcom has started issuing purchase orders for the Vector 530™. This agreement could potentially result in orders for all of Eskom's fleet of 5,000 vehicles. These transactions will be insured by Export Development Canada.

Emcom is South Africa's most successful company in the Radio Communications industry and fleet management. Using Digital Dispatch's software development kit, Emcom has developed the software to interface to the Vector 530™ to meet the specific needs of Eskom. Eskom supplies about 95% of the country's electricity requirements and is responsible for the generation, transmission and distribution of electricity from its 24 power stations.

"This landmark agreement opens the door to new geographic and vertical markets for us," said Cliff Snelling, Vice President of Marketing for Digital Dispatch. "The fact that our software development kit enables the interface of our mobile data terminals to numerous third party applications opens up new markets for us. This also evidences that our strategy of geographic and market diversifications is on the right track and gaining momentum."

Geographic market expansion is a part of Digital Dispatch's overall corporate strategy. The Company has established a significant market presence in Australia within the past two years by equipping Lime Taxis, a subsidiary of MACT Holding Company, with their dispatch solution. Digital Dispatch also has similar initiatives in place in Asia and Eastern Europe that are expected to mature in the near future and is further strengthening its market presence in Europe through its strategic acquisition of Mobisoft Oy announced on August 21, 2007. The Company also entered into an agreement to supply up to 5,000 iPilot 8000™ mobile computers to its existing customer TAXIS G7 of Paris, France. The Company's agreement with Emcom represents the second large international supply agreement entered into by Digital Dispatch in 2007.

About Emcom SA (Pty) Ltd.

Originally founded in 1975 as Electromarine, Emcom SA (Pty) Ltd. acquired its current name in 1980. Emcom was formed to supply and service wireless communications equipment and services to industries and the government. It remains a specialist organization. It was then the only independent communications company in Southern Africa. Thirty-five years later it is the oldest and most successful company in the Radio Communications industry in the country. The present management team are shareholders of the company. Eskom, South Africa's primary electricity supplier, is a client of Emcom.

About Digital Dispatch Systems Inc.

Digital Dispatch Systems Inc. is a worldwide provider of mobile data solutions for fleet and mobile workforce management. Founded in 1987, we have an installed base of more than 75,000 wireless mobile data devices and nearly 200 wireless data systems in four continents. We offer products and services to manage vehicle fleets and mobile workforces, including dispatch software, wireless communication infrastructure and a range of in-vehicle mobile devices.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information. Such forward-looking statements may include the Company's success in generating future sales and customers in its geographic expansion efforts including South Africa, financial and other projections as well as statements regarding the Company's future plans, market opportunities, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the need to develop, integrate and deploy applications to meet our customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on our customer's satisfaction with Digital Dispatch Systems' products; the timing of entering into significant contracts; our customers' continued commitment to the deployment of our solutions; the risks involved in developing integrated software and hardware solutions and integrating them with third-party communication and other services; the performance of the global economy and growth in software industry sales; market acceptance of the company's products and services; customer and industry analyst perception of the company and its technology vision and future prospects; the success of certain business combinations engaged in by the Company or by competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; concentration of ownership; and including but not limited to other factors described in Digital Dispatch Systems' reports filed on Sedar, including its Annual Information Form and financial report for the year ended December 31, 2006.
In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors: the Company's ability to execute on its business plan; the acceptance of the Company's products and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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