HONG KONG (November 18, 1997) - Deswell Industries, Inc. (NASDAQ NM Symbols: DSWLF, DSWWF) (the "Company") today announced that on November 14, 1997, its Board of Directors declared an interim cash dividend of US$0.30 per Common Share (1997 interim dividend $0.25 per share). The dividend will be payable on December 16, 1997 to shareholders of record as of December 2, 1997.

Deswell manufactures injection-molded plastic parts and components, electronic products and subassemblies and metallic products for original equipment manufacturers ("OEMs") and contract manufacturers at its factories in the People's Republic of China. The Company produces a wide variety of plastic parts and components used in the manufacture of consumer and industrial products; printed circuit board assemblies using surface mount ("SMT"), and pin-through hole ("PHT") interconnection technologies; and finished products, such as telephones, telephone answering machines, sophisticated studio-quality audio equipment and computer peripherals. Metal products manufactured by the Company include metallic molds and accessory parts used in audio equipment, telephones and copying machines. The Company's customers include Mita Industries (H.K.) Limited, Nam Tai Electronics (Shenzen) Co. Ltd., Inter-Tel Incorporated, Behringer spezeiller studiotechnik GMBH, and Shakespeare (H.K.) Limited.