Mr. Monaco joins DSI Toys Inc. from 21st Century Toy and brings over 20 years of experience in the toy industry, including positions of increasing responsibility at Mattel Toys Inc., Galoob Toys and Hasbro Inc. Mr. Monaco will be responsible for managing the Company's accounts in the northeast including Toys "R" Us Inc. and KB Toys, as well as overseeing the Company's independent sales representatives in that region.

"Gary's vast experience in the industry, his established relationships with Toys "R" Us Inc. and KB Toys, and his proven track record in customer development will strengthen our opportunity to grow our business," stated Thomas W. Neville, senior vice president -- Worldwide Sales.

Mr. Monaco holds a bachelor of science degree in communications from Westchester University of Pennsylvania.

The Company designs, develops, markets and distributes high quality, innovative dolls, toys and consumer electronics products. Core products include Tech-Link(R) communications products, Kawasaki(R) electronic musical instruments, GearHead(R) remote control vehicles, LazerDoodle(TM) electronic drawing toy and a full range of special feature doll brands including Sweet Faith(R), Pride & Joy(R), Too Cute Twins(TM), Sassy Secrets(TM), Somersault Sara(TM), Hush Li'l Baby(R), Little Darlings(R) and the Elite(R) brand of Lifetime Play Dolls(TM). The Company's Web site can be reached at http://www.dsitoys.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new and existing products, capital resources, and future financial condition and results are forward-looking. Forward-looking statements involve risks and uncertainties, which may cause DSI's actual results in future periods to differ materially and adversely from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of DSI's customers, competition, and other factors discussed from time to time in DSI's filings with the Securities and Exchange Commission.