Paris, FRANCE - May 10, 2006

The Dexxon Group announces that, as of May 3, 2006, it has completed the acquisition of Emtec Group, including its 8 subsidiaries and their related branches throughout Europe. This transaction will add a global staff of 80 employees. Emtec, a pioneer in the recording media industry, is now part of the Dexxon Group.

"The acquisition of Emtec is part of the development and diversification strategy pursued by Dexxon Group over the years," commented Sassan Shafiee, Dexxon Group CEO. Dexxon Group has established a unique structure, based on two independent divisions with complementary know-how: 'Distribution & Services' and 'Brand & Product Development.' "The Brand and Product Development division’s priority is to establish and strengthen value-added offerings for Intuix and Emtec. In parallel, Dexxon will keep developing Distribution and Services, its other core business, through its worldwide distribution network and with its historical and strategic partners. Each division has its own resources, entirely dedicated to its own priorities," explained Sassan Shafiee.

The Dexxon Group has acquired a strong expertise in product development under the Intuix brand since 2003. Based on that experience, Dexxon will keep promoting and developing Emtec by taking advantage of its powerful brand represented by the famous red logo created by BASF more than 40 years ago. Moreover, Dexxon Group will invest to expand Emtec into a worldwide brand and add to its product portfolio. Dexxon will assign a dedicated team responsible for designing, developing and marketing new products, especially digital mobile solutions. In this regard, Dexxon Group also benefits from a strong network of strategic partners in Asia.

With this new acquisition, the Dexxon Group now employs more than 600 people worldwide and its revenues exceed 600 million euros. "Dexxon Group is for us the best option to sustain and develop our activity, which dates back to 1934 when BASF invented the first magnetic tape for audio recording, and which now involves new products such as flash memories or USB keys. Joining Dexxon's strong financial and logistic structure will enable us to enhance Emtec's consumer brand awareness and product portfolio," stressed Jean de Riberolles, Emtec International Managing Director.

Emtec's reputation, experience and strong sales and distribution network in the retail channel bring a major competitive edge to Dexxon's development strategy. The combination of Emtec and Dexxon assets and experience in the storage media and mobility products market enhances Dexxon’s position in the consumer market. Finally, Dexxon Group, already present in France, Germany, the Netherlands, Belgium, Sweden and the United States, continues to expand its European presence by adding operations in Italy, Spain, Poland and Austria.

About Dexxon Group:
Dexxon began serving the data storage industry over 25 years ago in Europe and now covers more than 50 countries worldwide through its 6 international offices in France, Germany, the Netherlands, Belgium, Sweden and the US. With the acquisition of the Emtec Group, Dexxon extends its European implantation by adding operations in South and Eastern European countries, specifically in Italy, Spain, Poland and Austria. The Dexxon group today employs more than 600 people worldwide and its consolidated revenues exceed 600 million euros.

The Dexxon group is divided into 2 main divisions:
- Distribution & Services
- Brand & Product Development

The Distribution & Services division specializes in the distribution of equipment and supplies for the office and IT marketplace, offering one of the most extensive product lines for removable data storage solutions. Our A-brand product portfolio consists of products for both the enterprise market and the retail channel.

• Data storage media BU: International coverage, with one of the most comprehensive product catalogues on the storage market, including tape solutions, optical and MO disks, and NAS servers.
Major vendors : Exabyte, Fuji, HP, IBM, Imation, Maxell, Maxoptix, Panasonic, Plasmon, Pioneer, Quantum, Sony, StorageTek
• Print and office supplies BU: European distribution of laser and inkjet supplies, comprising ribbons, rolls, paper and a large range of IT accessories.
Major vendors : Brother, Canon, EGT, Epson, Genicom, HP, Konica Minolta, Kyocera, Lexmark, OKI, Olivetti, Panasonic, Printronix, Ricoh, Riso, Sagem, Samsung, Sharp, Tally, Xerox
• Print and office equipment and services BU: Franco-Belgian BU specialized in printers, multifunctions, copiers, fax and video projectors of leading vendors on the market, from SOHO to high end professional solutions. Dexxon is the only wholesaler with a national After-Sales service on print solutions, thanks to our 80 technicians.
Major vendors : Brother, Canon, Epson, HP, Konica Minolta, Kyocera, Lexmark, OKI, Olivetti, Panasonic, Ricoh, Sagem, Samsung
• Casio BU: Covering France and Belgium, this BU delivers Casio scientific and office calculators as well as electronic cash registers.
• Retail BU: European distribution of mass market devices such as USB sticks, MP3 players, memory cards, DVB-T products, digital cameras, personal inkjet printers and scanners for home use.
Major vendors : Aiptek, Brother, Canon, Epson, HP, Intuix, Iomega, Konica Minolta, Lexmark, Olivetti

The Brand & Product Development division develops Emtec and Intuix products, via dedicated teams responsible for designing, developing and marketing new products.
The development process involves efficient sourcing and strong partnerships to ensure high quality and innovative products.
The division is also responsible for marketing Emtec and Intuix products by creating original and specific retail packaging and managing communication and advertising campaigns for proper exposure.
Its product portfolio includes largely spread multimedia and office products: USB keys, data storage media, DVB-T products and tuners, MP3, Bluetooth and personal multifunctions and printers.

About Emtec Group:
A pioneer in the recording media industry since 1934 when BASF invented the first magnetic tape for audio recordings, Emtec, a BASF spin-off, was launched as an international brand in 1997.

Emtec´s current product portfolio consists of a complete range of high quality data storage products like CD-Recordable, CD-Rewritable, DVD-Recordable, DVD-Rewritable, Magnetic Tape Products, Floppy Discs, Flash Memory Cards and USB Keys.

Emtec is headquartered in Paris, France and operates a world-wide sales and distribution network with subsidiaries in Austria, Belgium, France, Germany, Italy, Poland, Spain and Singapore.

About Digital Storage:
Digital Storage is a wholesale distributor of removable storage media, related equipment, accessories and services. DSI provides real-time services, industry knowledge, and customized, value-added offerings that help customers and suppliers grow their businesses. Digital Storage emphasizes the sale of high-quality, internationally-known, name-brand product lines. Sony, Quantum, IBM, Imation, Maxell, Verbatim, Intuix, TDK, Fuji, Exabyte, EDP, MAM-A, TEAC and SanDisk are just a few of the major brands supported. Dedicated to helping customers grow their business, Digital Storage offers excellent customer service, product availability and industry knowledge.

Digital Storage, Inc. is located in Columbus, Ohio
Telephone: 740-548-7179
Fax: 740-548-7978
Email: info@digitalstorage.com
Website: http://www.digitalstorage.com

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