Pinnacle Data Systems Teams with Dilithium on 3G Wireless Platforms

3/9/2006 - Pinnacle Data Systems, Inc. (PDSi) (AMEX: PNS) today announced that Dilithium Networks and PDSi have signed a three year contract to provide design, manufacturing, global deployment and lifecycle management for Dilithiumís rapidly growing line of industry-leading 3G wireless platforms.

PDSi has developed a unique suite of products, services, and information-management solutions designed to serve the mission-critical needs of original equipment manufacturers. This comprehensive service offering encompasses the design and manufacture of the product offering as well as system integration and RoHS & WEEE compliance support for Dilithium product deployments within the EU Community. Additionally, PDSi will provide global logistics fulfillment, global inventory management, program management and extensive business information and collaboration tools.

"PDSi is excited to begin this expanded relationship with Dilithium Networks and is honored that we were chosen to manage this global project. Dilithium is a rapidly growing, innovative communications company in the next generation wireless telecommunications industry and in need of the type of outsourced infrastructure we provide," stated Chris Winslow, President and COO. "We are confident that by selecting PDSiís industry-leading services organization to fulfill their service needs, Dilithium will better serve their customers."

Norm Foust, Vice President of Operations stated, "Dilithium Networks is very pleased to have engaged in a full turn key manufacturing & services relationship with Pinnacle Data Systems, thereby increasing the world class service offerings for the growing requirements of the Dilithium customer base."

About PDSi
PDSi is a leading provider of computer hardware design, engineering, manufacturing, integration and global service and support solutions for original equipment manufacturers (OEMs) in the telecommunications, aerospace, digital-imaging, medical diagnostic, process-control, computer, computer peripheral, and data storage industries. Specializing in powerful, reliable and scalable hardware platforms, PDSi offers a full range of services to increase product speed to market and to provide service and support to units in the field through comprehensive product lifecycle management programs encompassing depot repair, advanced exchange, contact center support and end-of-life control.

About Dilithium Networks
Dilithium Networks is the leader in 3G video telephony solutions for the world's mobile and broadband industries. Products include multimedia transcoding gateways, protocol stacks and video telephony client solutions. Dilithium Networks serves a global customer base including the majority of the leading network equipment suppliers, terminal manufacturers and mobile operators.

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