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                                                                    Exhibit 99.1

NEWS ANNOUNCEMENT                              For Immediate Release
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For more information contact:
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Omar Choucair              Jeffrey A. Dankworth        Joseph N. Jaffoni
Chief Financial Officer    President                   Jennifer L. Colbert
DG Systems, Inc.           StarGuide Digital Networks  Jaffoni & Collins Incorporated
972/402-4800               775/686-5050                212/835-8500 dgit@jcir.com
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            DG SYSTEMS AND STARGUIDE DIGITAL NETWORKS CLOSE MERGER

      - Transaction Combines the Broadcasting Industry's Leading Digital
     Technology Applications and the CoolCast Internet Service Offering -

DALLAS, Texas and RENO, Nevada - January 18, 2001 - DG Systems, Inc. (Nasdaq:
DGIT), the leading digital technology innovator for delivering short-form audio
and video content to the broadcast industry, and StarGuide Digital Networks, the
audio industry's standard for long-form digital content delivery, today
announced that they have completed the merger between the two companies.  The
merger, which was approved by DG Systems' shareholders on November 22, 2000,
also integrates StarGuide's innovative, patented CoolCast broadcasting
technology.  CoolCast (www.coolcast.com) is an Internet broadcaster offering
consumers free, join-in-progress and stored video and audio content 24/7.

Matthew E. Devine, CEO of the combined entity, commented on the successful
completion of the merger, "DG's and StarGuide's respective industry positions,
leading digital technologies and patented intellectual properties will
strengthen the combined entity's operating, financial and technical
capabilities.  The new entity will benefit from the combined resources and long-
standing customer relationships of each entity, thereby creating an even
stronger platform from which to super serve our customers.  As a result, we
expect to develop new opportunities for significant revenue growth while
capitalizing on the available synergies, both of which should be reflected in
future financial operating results."

Mr. Devine continued, "The success of CoolCast with Cincinnati's ZoomTown
customers, the nation's largest concentration of DSL users, has opened the door
for additional distribution partnerships and content relationships.  Ultimately,
we are intent on establishing a national footprint for this exciting,
efficiently scalable video and audio Internet broadcasting application and
believe the cross utilization of DG's and StarGuide's resources and
relationships will accelerate this process.  The prospects for DG's and
StarGuide's businesses are bright, and the further development of CoolCast
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will be an additional value driver for our shareholders."

Pursuant to the terms of the merger agreement, StarGuide shareholders will
receive approximately 1.7 DG Systems' shares for each StarGuide share held in a
tax-free exchange.  With the consummation of the merger, the combined entity has
approximately 81.5 million fully diluted common shares outstanding.  Significant
shareholders of the new entity will include Infinity Broadcasting (NYSE: INF),
Westwood One (NYSE: WON), Pequot Capital Management, Technology Crossover
Ventures, London Merchant Securities as well as the DG Systems and StarGuide
Digital Networks management teams.

Jeffrey Dankworth, President of StarGuide Digital Networks, added, "We're
excited about joining together two world class organizations.  The broad
technological, financial and management resources will support our ongoing
commitment to continued growth and excellent customer service."

The merger of DG Systems and StarGuide Digital Networks creates the nation's
standard in digital network services and technology for the broadcasting
industry, featuring proprietary satellite and Internet transmission technology;
the CoolCast Internet broadcasting operation which offers consumers free, join-
in-progress and stored video and audio content 24/7; and, service relationships
with over 5,000 advertisers and agencies, 7,500 radio stations and 775
television broadcast facilities across the United States and Canada.

This release contains forward-looking statements relating to the company,
including the expansion of its digital distribution network, and the demand
among certain clients for digital audio and video delivery services.  These
forward-looking statements involve risks and uncertainties, which could cause
actual results to differ materially from those projected.  These and other risks
relating to DG Systems' business are set forth in the company's Form 10-K filed
with the Securities and Exchange Commission on March 28, 2000, and the company's
proxy statement dated October 20, 2000.

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