EXHIBIT 99.1

      DPAC Technologies Completes Closure of Previously Announced
                 Sale of Memory Stacking Product Line

    GARDEN GROVE, Calif.--(BUSINESS WIRE)--Sept. 1, 2004--DPAC
Technologies (NASDAQ:DPAC)

    --  DPAC focused exclusively on Airborne(TM) Wireless products

    --  Completes production of close-out orders for LP Stacking
        technology

    --  Reduces work force by 13, including CFO William M. Stowell

    --  Steve Vukadinovich, DPAC's Controller for the past four years,
        is appointed CFO

    --  DPAC places excess manufacturing space up for sub-lease
        consideration as well as placing memory stacking equipment for
        sale

    DPAC Technologies (NASDAQ:DPAC) announced today that DPAC is now
exclusively focused on its Airborne(TM) wireless connectivity business
for OEMs. The intellectual property related to memory stacking was
sold to Staktek, Inc. in June of this year. The company has been
producing and shipping final close-out orders from its historical
customers for these products as provided under the intellectual
property sale agreement with Staktek related to DPAC's LP Memory
Stacking product line. DPAC has now completed the final production
orders. With the closure of the manufacturing operation, DPAC reduced
its work force by 13 people. The reduction in force includes William
Stowell, DPAC's Chief Financial Officer. Bill will be replaced as CFO
by Steve Vukadinovich, DPAC's Controller for the past four years.
    "We thank Bill for seventeen years of dedicated and effective
leadership to DPAC as the CFO and we wish him the very best of luck in
his future endeavors," said Kim Early, DPAC's CEO.
    In connection with the closedown of its memory stacking
operations, DPAC expects to incur a one-time charge totaling
approximately $588,000 that will affect the results of operations for
its second fiscal quarter ending August 31, 2004. The charges reflect
costs for severance expense related to the reduction in personnel.
This charge will be offset by the sale of the stacking patents to
Staktek for $670,000.
    "The completion of this action marks a significant milestone in
the transformation of DPAC from a shrinking provider of memory
stacking services into a participant in the rapidly growing market for
wireless communications for OEMs in the machine-to-machine world. Over
the past twelve months we have wound up the stacking business,
recruited a motivated and talented wireless team, developed a solid
flow of OEM customers, and hopefully put ourselves in position to
benefit from the potential of a large and fast growing market," said
Early. "We will be focused on supporting our customers in the
completion of their designs, transitioning those customers to
production volumes and demonstrating our ability to build a growing
profitable business for our shareholders."

    About DPAC Technologies

    Located in Garden Grove, California, DPAC Technologies provides
embedded wireless networking and connectivity products for
machine-to-machine communication applications. DPAC's wireless
products are used by major OEMs in the transportation, instrumentation
and industrial control, homeland security, medical diagnostics and
logistics markets to provide remote data collection and control. The
Company's web site address is http://www.dpactech.com.

    Forward-Looking Statements

    This press release includes forward-looking statements, including
statements regarding technology development and business plans, all of
which are subject to material change, uncertainties and risks. Every
statement herein that is not historic in nature is a forward-looking
statement for purposes of the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements involve
risks and uncertainties, and therefore actual results may differ
materially from those set forth in or underlying these statements.
Factors that may materially affect DPAC's business include, but are
not limited to, competition from similar technologies and products,
rapid changes in competing technology standards, the uncertainties
related to obtaining patents pursuant to our current and future patent
applications, challenges in identifying and capitalizing on business
opportunities, difficulties protecting technology or proprietary
rights, risks of litigation, risks related to potential de-listing
from the Nasdaq Small Cap Market, and risks and uncertainties due to
general market and economic conditions. Please refer to the additional
information about the risks and challenges faced by DPAC Technologies
Corp. as contained in the Securities and Exchange Commission filings
made by the DPAC Technologies Corp. on Form 10-K, 10-Q and 8-K. DPAC
Technologies Corp. specifically disclaims any obligation to update or
revise any forward-looking statements whether as a result of new
information, future developments or otherwise.



    CONTACT: DPAC Technologies
             Kim Early, 714-898-0007
             Kim.Early@dpactech.com
             or
             Steve Vukadinovich, 714-898-0007
             Stephen.vukadinovich@dpactech.com
             www.dpactech.com