Deswell Announces $4 Million Stock Buyback Plan

Deswell Industries, Inc.

today announced that its board of directors unanimously approved on March 14, 2012, a share repurchase program authorizing Deswell's management to purchase up to US$4 million of Deswell's outstanding common shares during the next two years.. The authorized repurchases are to be made from time to time in open-market transactions, in block transactions or through privately negotiated transactions. The timing, volume and nature of share repurchases will be at the sole discretion of management, will be dependent on market conditions and other factors and are intended to be subject to Securities and Exchange Commission (SEC) Rule 10b-18 requirements. It is also expected that such share repurchases will be effected in accordance with a plan in conformity with SEC Rule 10b5-1. The program does not obligate Deswell to acquire any particular number or dollar amount of its common shares and may be suspended, modified, extended or discontinued at any time. No assurance can be given that any particular number or dollar amount of common stock will be repurchased.