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PDSi Commences Operations in Asia

New Repair and Integration Facility in Hong Kong Makes First Shipments

Contact:
George A. Troutman
Chief Financial Officer
(614) 748-1150
george.troutman@pinnacle.com

COLUMBUS, Ohio -- May 22, 2007 -- Pinnacle Data Systems, Inc. (PDSi) (AMEX: PNS) today announced the formation of PDSi (Asia) and the commencement of operations in its new repair and integration service hub in Hong Kong with partner E.C. Fix Technologies.

The new operation is an integral addition to PDSi’s repair and integration capabilities to serve its global original equipment manufacturer (OEM) and independent software vendor (ISV) customer base in Asia. E.C. Fix Technologies is a premier support solution provider of IT and related products for Hong Kong, Macau and mainland China. This international expansion leverages PDSi local business relationships and expertise, is consistent with PDSi’s strategic growth objectives, and is managed and marketed out of PDSi’s existing regional office in Singapore.

Michael R. Sayre, President and Chief Executive Officer, stated, “PDSi ( Asia ) offers comprehensive support services for our global customers operating in the Asia Pacific region. We have shipped to and supported customers in this region from the United States for many years. Our new 8,000 square foot facility in Hong Kong currently provides system level repair for a major global telecommunications customer. Computer board level repair and system and rack level integration capabilities are also being established. The physical presence of PDSi facilities and people in this region coupled with strong working relationships with high quality service providers increases our potential to be a strategic partner for more customers in the Asia Pacific region. PDSi ( Asia ) provides customers with advantages that include lower cost, increased time zone coverage and faster response to repair needs. These capabilities are also expected to specifically increase the market for our Compact Peripheral Component Interconnect (cPCI) and Advanced Telecommunications Computing Architecture (ATCA) platforms as well as our computer OEM partners’ platforms with customization and integration services built around them.”

About PDSi

PDSi provides professional services around the development, deployment and support of sophisticated computer systems that are, or are in, the products of its world-leading original equipment manufacturer customer base in the telecommunications, medical, computer and network, imaging and aerospace equipment industries, among others. PDSi offers a full range of engineering, product development, project and program management, integration, manufacturing, and lifecycle support services designed to increase product speed to market and engineered product life while decreasing overall costs to develop, deploy and service their products. For more information, visit the PDSi website at www.pinnacle.com.

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