Dried Malt Extract, or DME is the result of removing nearly all of the water from the wort, producing a powdery extract that is easily reconstituted. It is produced by spraying the wort in a fine mist in a heated room with negative air pressure. The water in each droplet almost instantly evaporates, leaving a fine powder that is collected. DME is often referred to "Spray Malt" for this reason. One pound of base malt is equivalent to approximately 0.6 pounds of DME.
When converting between dried and liquid extract, it is important to note that, since the water is completely removed, DME is more concentrated. As such, there is approximately the same amount of actual malt in 0.8 lbs. of DME as there is in 1 pound of LME.