This paper considers the problem of H-infinity stabilization of discrete-time systems with state delays and exogenous bounded-energy l(2) disturbances. Specifically, an H-proportional to state feedback control design problem for discrete-time systems with time delay is addressed. The principal result involves sufficient conditions in terms of a modified Riccati equation for characterizing state feedback controllers that enforce a bound on H-infinity performance and guarantee closed-loop stability in the face of system state delay.