Investor Contacts: Gerald Tucciarone
Chief Financial Officer
631/434-1600 extension 306


              HAUPPAUGE DIGITAL REPORTS FISCAL 2004 FIRST QUARTER
                               FINANCIAL RESULTS

--------------------------------------------------------------------------------
Reports 17% sales increase and 51% profit  increase to $.11 per share,  compared
with   $.07   per   share   for   the    previous    years'    fiscal    quarter
--------------------------------------------------------------------------------
HAUPPAUGE,  NY - February 11 , 2004 - Hauppauge Digital, Inc. (NASDAQ:  HAUP), a
leading  developer of digital video TV and data broadcast  receiver products for
personal  computers,  today  reported  financial  results  for the fiscal  first
quarter ended December 31, 2003.

FIRST  QUARTER RESULTS

Sales were $18.2 million for the first quarter compared to $15.5 million for the
previous year's first quarter,  an increase of approximately  17%.  Increases in
OEM sales of WinTV-PVR  products for use with Microsoft's  Media Center Edition,
retail  WinTV-PVR  personal  video  recorder  product  sales,  European  digital
products  and new  product  introductions  were  primarily  responsible  for the
increase in sales.

Gross profit percentage was 25.13% for the first quarter,  compared with a gross
profit  percentage of 25.26% for the previous  year's first quarter.  Higher OEM
sales,  which require minimal sales and advertising  support,  but yield a lower
margin,  offset  the  increase  in gross  profit  due to cost  reductions  and a
favorable sales mix of higher gross margin products.

Selling,   General  and   Administrative   costs  increased  by  $414,314.   The
strengthening  of the value of the Euro to the U.S.  dollar was  responsible for
$211,157 of the increase, while promotional and marketing programs and increased
legal  and  consulting  costs  contributed  to  the  remaining  increase  in SGA
expenses. Spending for research and development decreased $82,799, mainly due to
lower contracted third party software development costs.

Net  income  for the  quarter  was  $992,860  or $0.11  per share on a basic and
diluted basis,  compared to net income of $656,472 or $0.07 per share on a basic
and diluted basis for the prior year's first quarter.

<PAGE>

DISCUSSION OF RESULTS

Ken Plotkin,  Hauppauge's Chief Executive Officer, stated, " After a slow second
half of fiscal 2003,  sales  rebounded in our first quarter of fiscal 2004.  Our
first fiscal quarter is typically our strongest  quarter.  In the quarter we saw
strong retail sales of our WinTV-PVR personal video recorder products, new sales
of Personal  Video  Recorder  product sold on an OEM basis to personal  computer
makers for use in their Windows XP Media Center Edition systems, and the initial
shipments of our MediaMVP  digital media decoder product line. Our sales and net
income increased approximately 17% and 51%, respectively, over last year's first
fiscal quarter. We continue to emphasize our product  development  programs with
the ultimate goal of  continuing  the first  quarter's  upward trend through the
remainder of the fiscal year".

ABOUT HAUPPAUGE DIGITAL
-----------------------

          Hauppauge  Digital,  Inc. is a leading developer of analog and digital
TV receiver  products for the personal  computer  market.  Through its Hauppauge
Computer Works, Inc. and Hauppauge Digital Europe Sarl subsidiaries, the Company
designs  and  develops  analog and digital TV  receivers  that allow PC users to
watch  television  on their PC screen  in a  resizable  window  and  enable  the
recording of TV shows to a hard disk, digital video editing, video conferencing,
receiving of digital TV  transmissions,  and the display of digital media stored
on a computer to a TV set via a home network.  The Company is  headquartered  in
Hauppauge, New York, with administrative offices in New York, Singapore, Ireland
and Luxembourg and sales offices in Germany,  London,  Paris,  The  Netherlands,
Sweden, Italy, Spain, Singapore and California.  The Company's Internet web site
can be found at http://www.hauppauge.com.
                -------------------------

     Certain statements in this Release constitute "forward-looking  statements"
     within the meaning of the Private Securities Litigation Reform Act of 1995.
     Such   forward-looking   statements   involve  known  and  unknown   risks,
     uncertainties  and  other  factors  which may  cause  the  actual  results,
     performance or  achievements  of the Company,  or industry  results,  to be
     materially  different from any future results,  performance or achievements
     expressed  or  implied by such  forward-looking  statements.  Such  factors
     include,  among other things, those described in the Company's filings with
     the Securities and Exchange Commission,  including, but not limited to, the
     Company's  Annual  Report on form 10-K for the fiscal year ended  September
     30, 2003.



                           [Financial Table Follows]



<PAGE>

                    HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)


                                                Three Months ended
                                                    December 31,
                                                2003              2002
                                                ----              ----


Net Sales                                   $18,230,298        $ 15,520,486
Cost of  Sales                               13,648,675          11,599,524
                                            -----------        ------------
Gross Profit                                  4,581,623           3,920,962

Selling, General and Administrative expenses  3,120,616           2,706,302
Research & Development  expenses                410,274             493,073
                                              ---------           ---------
Income from operations                        1,050,733             721,587

Other income (expense):
Interest income                                   1,739               5,971
Foreign currency                                (11,333)            (44,603)
                                            -----------        ------------
Total other income (expense)                     (9,594)            (38,632)
                                            -----------        ------------
Income before income tax expense              1,041,139             682,955
Income tax  expense                              48,279              26,483
                                            -----------        ------------
Net  income                                 $   992,860        $    656,472
                                            ===========        ============


Net income per share-basic and diluted:     $      0.11        $       0.07
                                            ===========        ============


Weighted average shares-basic                 8,880,651           8,858,431
Weighted average shares-diluted               9,370,081           8,878,181

<PAGE>


                    HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                    December 31,         September 30,
                                                                                        2003                 2003
                                                                                   (Unaudited)
                                                                               ------------------------------------------
ASSETS
<S>                                                                             <C>                     <C>

Current Assets:
     Cash and cash equivalents                                                  $   5,203,858          $ 5,838,160
     Receivables, net of various allowances                                        13,799,977            9,182,758
     Inventories                                                                    9,949,148            5,474,374
     Prepaid expenses and other current assets                                        699,383              546,328
                                                                               ------------------------------------------
         Total current assets                                                      29,652,366           21,041,620

     Property, plant and equipment, net                                               492,203              532,516
     Security deposits and other non current assets                                    76,216               76,216
                                                                               ------------------------------------------
                                                                                $  30,220,785          $21,650,352
                                                                               ==========================================

 Liabilities and  Stockholders' Equity :
 Current Liabilities:
    Accounts payable                                                            $  13,019,337            7,452,867
    Accrued expenses                                                                3,506,988            2,539,678
    Income taxes payable                                                              161,997              189,122
                                                                               ------------------------------------------
         Total current liabilities                                                 16,688,322           10,181,667

 Stockholders' Equity
    Common stock $.01 par value; 25,000,000 shares authorized
     9,423,749 and 9,420,315  issued, respectively                                     94,237               94,203
     Additional paid-in capital                                                    12,318,573           12,302,119
     Retained earnings                                                              1,092,847               99,987
     Accumulated other comprehensive income                                         1,524,022              469,592
    Treasury Stock, at cost, 542,067, shares                                       (1,497,216)          (1,497,216)
                                                                               ------------------------------------------
         Total stockholders' equity                                                13,532,463           11,468,685
                                                                               ------------------------------------------
                                                                                $  30,220,785          $21,650,352
                                                                               ==========================================

</TABLE>

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