AKRON, Ohio (Business Wire EON) April 19, 2007 -- DSI Direct Sales, Inc. (DSDI.PK) and its wholly-owned subsidiary, Digital Color Imaging, Inc., a leading provider of print communications and digital asset management solutions, released financial statements today for the years ended December 31, 2006 and 2005. DSI also announced that the company’s CFO, Dr. David F. Hostelley, CPA, has been elected to the board of directors.

We're pleased that our Y/E 2006 net income was better than the projected results we expected. This was principally due to the efforts of our dedicated and experienced staff, with an average tenure of 13 years. Given our cost reductions, spending discipline, renovated facilities and new equipment that allows us to offer broader services, we expect efficiencies to continue in the coming year.

DSI’s consolidated statements report Y/E 2006 revenue of $4.76 million, an improvement over revenue of $3.62 million for Y/E 2005. This 31.5% increase is directly related to increased utilization of Digital Color Imaging’s Heidelberg® six color Speedmaster CD 74 print press, a highly automated press delivering cost advantages through enhanced speed and unsurpassed flexibility on short and long runs, which was fully operational at the beginning of 2005.

The Company’s total cost of sales for Y/E 2006 were approximately $3.05 million, or 64% of sales, compared with Y/E 2005 of $2.54 million or 70% of sales. The improvement can be directly related to improved operations, which resulted from moving to a new, state-of-the-art facility while lowering occupancy expense, and the installation of new print equipment. S, G, & A expenses were $1.47 million for Y/E 2006 as compared with $0.93 million for Y/E 2005. The increase was primarily attributed to increased personnel to support increased sales volume, which amounted to $363 thousand. Also contributing was $196 thousand for the use of outside contactors’ services for building maintenance and repairs, now that the company owns its own facilities. Net income for Y/E 2006 showed substantial improvement, coming in at $317,646 versus a net loss of $51,993 for Y/E 2005. During 2005 the Company was ramping up and incurred such costs as necessary to allow for increased sales and profitability for 2006.

DSI’s CEO, Dave Welner, stated, “We were pleased to close 2006 on a positive note, and are aggressively working toward an estimated unprecedented sales increase of 26%, to $6 million, for 2007. This growth is anticipated to be driven largely by the added capabilities we now offer with the addition in December 2006 of a new Xerox iGEN3® 110 Digital Production Press, which will be fully operational throughout 2007. This equipment gives us the capability to offer customized web-to-print solutions on demand, extremely flexible production of one-to-one personalized marketing communication pieces with variable relevant content, digital books and manuals, short run offset transfer, and cross media marketing campaigns.”

David Hostelley, DSI’s CFO, commented, “We’re pleased that our Y/E 2006 net income was better than the projected results we expected. This was principally due to the efforts of our dedicated and experienced staff, with an average tenure of 13 years. Given our cost reductions, spending discipline, renovated facilities and new equipment that allows us to offer broader services, we expect efficiencies to continue in the coming year.”

On the appointment of Dr. Hostelley to DSI’s Board of Directors, Mr. Welner said, “We were fortunate to have someone of David’s caliber as our CFO these past two years. This appointment acknowledges his hard work and countless contributions to improving our financial structure and efficiency while in the CFO role. We look to David to play a key leadership role in the Company going forward, and congratulate him on his accomplishments and dedication to DSI Direct Sales and Digital Color Imaging.” Dr. Hostelley will remain the company’s CFO as he takes on his additional duties on the Board.

About Digital Color Imaging:

Digital Color Imaging (http://www.dcimage.com) is a leading full-service strategic partner for prepress and digital printing needs. DCI provides direct imaging, web to print solutions, large format printing, multi-media production, and print personalization for 1:1 direct marketing campaigns. Services also include digitally drum-scanned separations, high-end retouching and page assembly, and high quality film output. With “The Vault”, DCI serves as a remote data librarian, housing client’s valuable digital assets and organizing them in an easy-to-find fashion to reuse or repurpose with ease.

The statements contained in this press release contain certain forward-looking statements, including statements regarding the company’s expectations, intentions, strategies, and beliefs regarding the future. All statements contained herein are based upon information available to the company’s management as of the date hereof, and actual results may vary based upon future events, both within and without the control of the company’s management. DSI Direct Sales, Inc. assumes no obligation to update any forward-looking statement contained in this press release.

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