Digital Dispatch Systems Inc.

Digital Dispatch Systems Inc.

October 23, 2007 13:46 ET

Digital Dispatch Wins ASI Deal Worth $3.32 Million

RICHMOND, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2007) - Digital Dispatch Systems Inc. (TSX:DD) -

Access Services Inc. of Los Angeles, California ("ASI"), one of the largest paratransit operators in North America, has announced that it will recommend to its Board that Digital Dispatch Systems Inc. (TSX:DD) be ratified as ASI's primary solutions provider for its paratransit fleet. Upon Board approval, ASI will award Digital Dispatch a contract worth approximately $3.32 million for project management services requiring the integration of Adept software from StrataGen Systems Inc. of Kirkland, Washington ("StrataGen") with voice recognition software from Unified Dispatch LLC of Altadena, California. This contract includes the initial purchase plus a five year service agreement.

"ASI and its contractors in the greater Los Angeles area have been long time Digital Dispatch customers for our mobile data terminals and dispatch application system. This recommendation by ASI for the routing and scheduling software is a major endorsement of Digital Dispatch as a primary solutions provider in this market," said Brent Gushulak, Vice President of Transit for Digital Dispatch.

Digital Dispatch was recently awarded a $2.2 million contract by the Suburban Mobility Authority for Regional Transportation of Michigan ("SMART") which also included the provision and integration of StrataGen's Adept software. Concurrently, Digital Dispatch is proceeding to complete on or before November 9, 2007 its previously announced intention to acquire all of the shares of StrataGen.

"SMART selected Digital Dispatch last month as their prime contractor to provide a complete solution to its paratransit fleet. This recommendation by ASI demonstrates that Digital Dispatch is gaining traction in the paratransit market. The acquisition of StrataGen is expected to further strengthen our offering and differentiate us in the global transit market," Mr. Gushulak added.

StrataGen was also recently awarded a $6.0 million order from its significant customer, MTA New York City Transit ("NYC Transit"), one of the largest global paratransit operators. This order from NYC Transit in addition to the order from SMART and the anticipated order from ASI with Digital Dispatch, results in over $11.5 million in outstanding customer orders to be delivered commencing in late 2007. All these orders include multiple year services agreements in the price.

"Our partnership with Digital Dispatch is gaining momentum as evidenced by the ASI and SMART opportunities which bodes well for the business combination of StrataGen and Digital Dispatch. With StrataGen's solid customer base, the significant follow on order from NYC Transit and these new customer opportunities with Digital Dispatch, the future of StrataGen looks promising," stated Allen Ho, CEO and President of StrataGen.

About Access Services Inc.

Based in Los Angeles, California, Access Services Inc., one of the largest paratransit operators in North America, is a state mandated local governmental agency created by Los Angeles County's public transit agencies to administer and manage the delivery of regional ADA paratransit service. Access Services Inc. is organized as a California public benefit corporation and is a "governmental" agency within the meanings of the California Fair Political Practices Act and the Open Meetings and Records Act (Brown Act). Access Services Inc. was established by 44 public fixed route transit operators in Los Angeles County. It is governed by a nine member board appointed by the Los Angeles County municipal fixed route operators, the Los Angeles County local fixed route operators, the City of Los Angeles, the County of Los Angeles, the Transportation Corridor Representatives of the Los Angeles branch of the League of Cities, the Los Angeles County Commission on Disabilities, and the Coalition of Independent Living Centers.

About StrataGen Systems Inc.

Based in Kirkland, Washington, StrataGen Systems, Inc. is a leading provider of dynamic real-time scheduling and client management software. StrataGen provides automatic, real-time scheduling systems aimed to improve efficiency and reduce operating costs for paratransit/demand-respond transport operators. Visit for more information.

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. Visit for more information.

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 expansion efforts into the transit market including but not limited to: the approval by the ASI Board of the recommendation of Digital Dispatch, the subsequent execution of the purchase contract with ASI and related delivery of such anticipated customer order, the successful execution of the purchase contract with SMART and related delivery of the Company's order with SMART, the successful negotiation and execution of the definitive acquisition agreement to acquire all of the issued and outstanding shares of StrataGen by November 9, 2007 and the related integration of the acquisition, 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 customers' requirements; the possibility of development or deployment difficulties or delays; the dependence on our customers' 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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