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PDSi Increases Size of EMEA Facility

New Site More Than Doubles Space For Current and Future Business Growth

FOR IMMEDIATE RELEASE
Contact:
Rob Ellis
Director, Marketing
(614) 748-1115
rob.ellis@pinnacle.com

COLUMBUS, Ohio – December 3, 2008 --- Pinnacle Data Systems, Inc. (PDSi) (NYSE Alternext: PNS) today announced that it has significantly expanded its EMEA operations center located in Tiel, Netherlands. In mid-November 2008, PDSi's wholly-owned European subsidiary company, PDSi B.V., moved to a new, larger facility located within a quarter mile of its former site. This new 32,000 square foot building provides over twice the floor space of the previous location, to streamline current production operations and afford the desired room for future growth.

Earlier this year, PDSi acquired Aspan Computer Repair Laboratories B.V. (Aspan) in Tiel, and the newly-formed subsidiary, PDSi B.V., continued to operate out of the former Aspan facility. As PDSi's EMEA business expanded, temporary mezzanine structures were added to accommodate additional space requirements. With further growth planned, the single floor plan at the new location enables the return to more efficient material flow patterns and provides high-bay warehouse area for greater vertical storage capacity.

"In a relatively short time, we had definitely outgrown the capacity of the old Aspan location," said Joost Masseur, General Manager of PDSi B.V. "With the new facility, PDSi is better equipped to provide more efficient operations for our existing clients and, once again, demonstrate to potential customers that we have the space to handle their new service programs."

PDSi B.V. employs about 25 people in Tiel and offers high-end computer-related repair and logistics services for some of the world's largest computer-based Original Equipment Manufacturers (OEMs). Conveniently located near the European logistics hubs of many of these OEMs, this PDSi operation serves primarily as the repair depot for their computer boards, storage devices, and other critical peripherals. By rapidly processing this material back into OEM service inventories, PDSi reduces costs and increases capability for its customers to support their global installed base. The new address of PDSi B.V. is Morsestraat 26, 4004 JP Tiel, The Netherlands.

About PDSi

PDSi is a global provider of specialized embedded computing products. We offer a wide range of technology platforms including standard and custom-designed products for the telecom, defense/aerospace, medical, semiconductor, industrial automation and IT markets. Our product capabilities range from board-level designs to globally-certified, fully integrated systems. Our specialties include long-life, embedded products and unique, customer-centric solutions.

In addition to our product offerings, PDSi provides a variety of engineering and manufacturing services for global OEMs requiring custom product design, system integration, repair programs, warranty management, and specialized production capabilities. With service centers in the U.S., Europe and Asia we ensure seamless support for solutions all around the world.

PDSi's turn-key technical programs help our customers bring their solutions to market faster and provide comprehensive service for the lifecycle of their products.

For more information, visit the PDSi website at www.pinnacle.com.

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