DSI reports third quarter results; Revenues up 35%.

SOUTH PLAINFIELD, N.J.--(BUSINESS WIRE)--July 24, 1996-- DSI - Digital Solutions Inc. (NASDAQ: DGSI), a leading professional employer organization (PEO) and provider of human resources management services, today reported results for the third quarter and nine months ended June 30, 1996.

Net

Nine months net income was $871,300, or six cents per share versus $668,000, or five cents per share for the nine months for the prior year. Revenues for the nine months climbed 41 percent to $73,900,000, from $52,468,000 for the comparable period last year.

"We are particularly pleased with the growth we have experienced in the Northeast this last quarter. We are hiring a sales executive for our Houston office to attempt to duplicate our experience in the Northeast," George J. Eklund, president and chief executive officer, said.

DSI is a full-line provider of human resource management services to employers in a wide variety of industries. Its services include employee leasing, administration of employee benefits and 401(k) plans, placement of temporary and permanent staffing and payroll tax service preparation. DSI was the first public company accredited by the National Association of Professional Employer Organizations (NAPEO).

The company has strategically located hubs in South Plainfield, N.J., Houston and Clearwater, Fla., and sales/service centers in New York, Ridgeland, Miss., and Dallas, El Paso, and Houston. -0-

                        Digital Solutions Inc.
                   Financial Highlights (Unaudited)

                            For the                    For the
                       Three Months Ended          Nine Months Ended
                     6/30/96       6/30/95       6/30/96      6/30/95

Operating revenues  $26,800,000   $19,841,000  $73,900,000 $52,468,000

Income from operations  221,300       153,000    1,069,900     724,000

Income before
 income taxes           161,100        85,000      872,400     686,000

Income tax                1,100        61,000        1,100     (18,000)

Net income              160,000       146,000      871,300     668,000

Earnings per share    $     .01     $     .01    $     .06   $     .05

Common and common
 equivalent shares   16,500,000    14,619,580   15,500,000  14,729,275

CONTACT: DSI - Digital Solutions Inc., South Plainfield

George J. Eklund, 908/561-1200

or

Porter, Le Vay & Rose Inc., New York

Michael A. Polyviou, 212/564-4700