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                                                                    EXHIBIT 99.1



          DENSE-PAC MICROSYSTEMS ANNOUNCES ACQUISITION OF PRODUCTIVITY
                           ENHANCEMENT PRODUCTS INC.
                BusinessWire, Thursday, October 19, 2000 at 07:07

GARDEN GROVE, Calif.--(BUSINESS WIRE)--Oct. 19, 2000--

Acquisition of Engineering Development and Manufacturing Outsourcing

Firm Expands Dense-Pac's Proprietary Stacking to System Level from

Core Component Business

Dense-Pac Microsystems Inc. (Nasdaq:DPAC), a leading edge provider of
high-density semiconductor packaging solutions, Thursday announced that it has
completed a letter of intent (LOI) to acquire Productivity Enhancement Products
Inc. ("PEPdesigns") of Laguna Hills, Calif., a privately held, leading
system-level engineering development and manufacturing outsourcing firm with
trailing 12 months revenue of approximately $7 million, and operating margin of
11 percent.

Under the terms of the LOI, PEPdesigns will be purchased for a price of
approximately $6 million, comprised of Dense-Pac common shares and the book
value of liabilities. This acquisition is expected to be completed before the
calendar year-end and will be accounted for as a purchase for accounting
purposes.

PEPdesigns provides turnkey electronic product development services to
networking, Internet appliance and telecommunications companies. The service
includes hardware, firmware, software and mechanical design integrated with
product manufacturing and program management services for "fast time to market"
product development. PEPdesigns' customers include CISCO Systems, Symbol
Technologies, Asyst Technologies and NEC.

According to Dense-Pac's president and CEO, Ted Bruce, "PEPdesigns' systems
design capabilities will strengthen Dense-Pac's ability to respond to customers'
packaging needs, and is expected to expand our manufacturing relationships using
our proprietary packaging technology, especially in the communications industry.
PEPdesign has developed a competency in DSL, having completed several designs
that are currently going to production. Simply, the addition of PEPdesign
capabilities to Dense-Pac's service offering will further our plan to
strategically diversify our revenue base and strengthen our direct relationship
with system manufacturers."

PEPdesigns' accomplishments include the development of a hand-held express mail
data collection device for the United States Postal Service. In 1999, PEPdesigns
contributed to the design and manufactured a Small Office/Home Office (SOHO)
Router and Firewall Internet appliance for BeadleNet Corp. BeadleNet was
acquired by Watchguard Technologies later in 1999 based on the success of the
appliance. PEPdesigns is now engaged in the design of a number of broadband
DSL/networking products that are expected to go into production in early 2001.

About Dense-Pac Microsystems Inc.

Dense-Pac Microsystems is a technology company specializing in the design and
production of proprietary, patented, three-dimensional high-density packaging.
High-density packaging allows commercial, industrial, defense and aerospace
customers to install large amounts of memory into small spaces. DPAC's
commercial products include applications such as network servers, computers
storage devices and medical instrumentation. The company's Web site is at
www.dense-pac.com.


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About Productivity Enhancement Products Inc.

Productivity Enhancement Products provides development, manufacturing, and
consulting services to a wide range of technology-driven industries. PEP's
skilled professionals, including product designers, developers and
manufacturers, have made this company one of the fastest growing engineering
firms in Southern California. For more information visit the PEP Web site at
www.pepinc.com.

This news release includes forward-looking statements, including statements
regarding the management's current beliefs concerning company's market,
technology development, expansion and business plans, which are subject to
change as a result of various risks or uncertainties. Every statement herein
that is not historic in nature is a forward-looking statement. The actual
results may materially differ from those described in any forward-looking
statement. Important factors that may cause actual results to differ are set
forth in the company's periodic filing with the U.S. Securities and Exchange
Commission including its Form 10-KSB for the year ended Feb. 29, 2000 or
subsequent Forms 10-QSB. These factors would include, but are not limited to,
uncertainties and risks concerning acquisitions, challenges in integrating
technologies or operations efficiently or managing acquired operations, risks
concerning liabilities acquired and due diligence, protection of technology or
proprietary rights, risks of litigation, and others, and difficulties of
controlling acquisition costs.



CONTACT: Dense-Pac Microsystems Inc., Garden Grove

Yvonne Huff, 714/898-0007

yvonneh@dense-pac.com

or

Wall Street Investor Relations Corp.

Joe Zappulla, 301/907-4090

JoeZ@WallStreetIR.com