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Thursday, February 06, 2003
Digital Peripheral Solutions Inc. acquires assets of QPS Inc

Digital Peripheral Solutions Inc. (DPS) today announced that it has purchased the assets and brand name of QPS Inc., a leading producer of award-winning computer hard drives, CD burners and DVD burners, as part of QPS's reorganization under Chapter 11 bankruptcy protection. Under terms of the purchase and reorganization plan, DPS will assume sole ownership of QPS. At the conclusion of the restructuring process and assuming full dilution of all outstanding warrants, the plan will provide DPS with full control of the new company...

"DPS's acquisition allows us to continue manufacturing our Que!-brand products and distribute them through the retail channel," said DPS CFO Rajeev Sharma, "It also enables us to continue providing customer and technical support.

"More important, it gives us the financial strength to move forward in developing our new generation of computer peripherals, especially those based on convergence technology, that continue the QPS tradition of offering leading edge products at an affordable price." DPS plans to begin introducing its new products in the coming months.

QPS-brand products are available through retail stores, catalogs, e-tailers and other computer product suppliers. These include Fry's, Apple Stores, CDW, Micro Warehouse, PC Connection, Creative Computer, Zones, Amazon, AOL, Buy.com and others. QPS-brand products are distributed in the United States through Ingram Micro, D&H and Wynit Inc. In addition, QPS-brand products are distributed to retail markets throughout Europe, Canada, Japan, Australia and Mexico.

For information contact: Digital Peripheral Solutions, 8015 East Crystal Drive, Anaheim, CA 92807, call 714/692-5573, fax 714/221-5493, e-mail sales@qps-inc.com or see on the Web at www.qps-inc.com. In Europe, contact QPS Europe, SARL 2, Avenue des roses 94386 Bonneuil/Marne Cede, France, contact: Guy Bensaid, Tel: +33-1-56-71-21-32 and Fax: +33-1-56-71-21-39.

Digital Peripheral Solutions specializes in external storage devices that include DVD, CD and hard drives for PCs, Macs, notebooks and other devices. The company's mission is to deliver advanced, award-winning products complete with all appropriate software and cables.

Certain matters discussed in this news release are forward-looking statements within the meaning of the federal securities laws. These statements, including but not limited to statements regarding the financial transactions between DPS and QPS contemplated by the DPS agreement, are based on reasonable assumptions and can give no assurance that its expectations will be achieved. Actual events could differ materially from those reflected in the forward-looking statements contained in this press release because of various risks, uncertainties and other factors including, but not limited general economic conditions, conditions in the market for electronics products, changes in the cost of materials and labor used in manufacturing, and the other risks detailed from time to time in news releases and company announcements. Statements concerning the potential benefits of the acquisition are also forward-looking statements.

Digital Peripheral Solutions Inc.
Rajeev Sharma, 714/692-5573, ext. 342
Daly-Swartz Public Relations
Jeffrey Swartz, 949/492-0075

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