Ampex Corporation Reports First Quarter 2003 Financial Results.

Business Editors

REDWOOD CITY, Calif.--(BUSINESS WIRE)--May 13, 2003

Ampex Corporation (Amex:AXC) reported a net loss of $1.9 million or $0.03 per diluted share for the first quarter of 2003. In the first quarter of 2002, the Company reported a net loss of $1.3 million or $0.02 per diluted share.

Revenues, which are comprised of royalties from licensing its patents and product sales of its Data Systems subsidiary, totaled $8.6 million in the first quarter of 2003 compared to $10.0 million in the first quarter of 2002. Royalty income from licensing totaled $0.4 million and contributed an operating profit of $0.1 million or $0.00 per diluted share in the first quarter of 2003 compared to royalty income of $1.2 million and operating profit of $1.0 million or $0.02 per diluted share in the first quarter of 2002. Operating income from Data Systems amounted to $0.03 per diluted share in the first quarter of 2003 unchanged from the first quarter of 2002. Interest expense and other financing costs, net accounted for $0.04 loss per diluted share in the first quarters of 2003 and 2002.

Giving effect to the benefit from extinguishment of preferred stock, the Company reported a net loss applicable to common stockholders of $0.9 million or $0.01 per diluted share in the first quarter of 2003 versus a net loss applicable to common stockholders of $0.2 million or $0.00 loss per diluted share in the first quarter of 2002.

The Board of Directors of the Company has approved and submitted to stockholders a proposal to effect a 1 for 20 reverse stock split of its Common Stock. If approved, the reverse stock split would become effective shortly after the Company's annual meeting scheduled for June 6, 2003. The per share information reported above has been calculated without effect to the reverse stock split.

Ampex Corporation, www.Ampex.com, headquartered in Redwood City, California, is one of the world's leading innovators and licensors of technologies for the visual information age.

This news release contains predictions, projections and other statements about the future that are intended to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of l995 (collectively, "forward-looking statements"). Forward-looking statements relate to various aspects of the Company's operations and strategies, including but not limited to the effects of possible continuing losses; the Company's liquidity and anticipated interest expenses; the risk of significant future losses from operations; its sales and royalty forecasts for future periods; the Company's marketing, product development, acquisition, investment, licensing and other strategies; redemption of the Company's outstanding Preferred Stock; possible future issuances of debt or equity securities; the possible effects of a reclassification of the Company's outstanding shares; new business development and industry trends; the possible need to raise additional capital in order to meet the Company's obligations and most other statements that are not historical in nature. Important factors that could cause actual results to differ materially from those described in the forward-looking statements are described in cautionary statements included in this news release and/or in the Company's 2002 Annual Report on Form 10-K filed with the SEC, and its Quarterly Reports on Form 10-Q for the fiscal quarter ended March 31, 2003, expected to be filed with the SEC shortly. In assessing forward-looking statements, readers are urged to consider carefully these cautionary statements. Forward-looking statements speak only as of the date of this news release, and the Company disclaims any obligations to update such statements. References to net income or net loss and income or loss per share refer to income or loss applicable to common stockholders.

                           AMPEX CORPORATION
     CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
            (in thousands, except share and per share data)

                                            For the Three Months Ended
                                             -------------------------
                                                     March 31,
                                             -------------------------
                                                 2003         2002
                                             ------------ ------------
                                                    (unaudited)
Royalty income                               $       386  $     1,215
Product revenue                                    8,244        8,770
                                             ------------ ------------
  Total revenue                                    8,630        9,985
                                             ------------ ------------

Intellectual property costs                          245          232
Cost of product sales                              4,216        5,220
Research, development and engineering                685          681
Selling and administrative                         3,082        2,632
                                             ------------ ------------
  Total costs and operating expenses               8,228        8,765
                                             ------------ ------------

  Operating income                                   402        1,220

Interest expense                                   2,221        2,123
Amortization of debt financing costs                  14          417
Interest income                                      (13)        (162)
Other (income) expense, net                           10           (3)
                                             ------------ ------------
  Loss before income taxes                        (1,830)      (1,155)

Provision for income taxes                           102          153
                                             ------------ ------------
  Net loss                                        (1,932)      (1,308)

Benefit from extinguishment of mandatorily
 redeemable preferred stock                        1,036        1,104
                                             ------------ ------------
  Net loss applicable to common stockholders        (896)        (204)

Other comprehensive loss, net of tax:
  Foreign currency translation adjustments            10           (9)
  Minimum pension adjustment                        (118)          --
                                             ------------ ------------
  Comprehensive loss                         $    (1,004) $      (213)
                                             ============ ============


Basic and diluted loss per share :
  Loss per share                             $     (0.03) $     (0.02)
  Loss per share applicable to common
   stockholders                              $     (0.01) $      0.00
                                             ------------ ------------
Weighted average number of common shares
 outstanding                                  63,416,917   61,658,165
                                             ============ ============



                           AMPEX CORPORATION
                      CONSOLIDATED BALANCE SHEETS
            (in thousands, except share and per share data)

                                           March 31,     December 31,
                                             2003           2002
                                         -------------- --------------
ASSETS                                    (unaudited)
Current assets:
  Cash and cash equivalents                  $   5,475      $   7,579
  Short-term investments                         1,515          1,483
  Accounts receivable (net of allowances
   of $196 in 2003 and $112 in 2002)             5,863          4,064
  Inventories                                    7,029          7,336
  Other current assets                           3,035          2,368
                                         -------------- --------------
   Total current assets                         22,917         22,830

Property, plant and equipment                    5,498          5,757
Other assets                                       722            752
                                         -------------- --------------
   Total assets                              $  29,137      $  29,339
                                         ============== ==============

LIABILITIES, REDEEMABLE PREFERRED STOCK
 AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Notes payable                              $     304      $     457
  Accounts payable                               1,385            962
  Net liabilities of discontinued
   operations                                    1,003          1,108
  Accrued restructuring costs                    1,300          1,300
  Other accrued liabilities                     10,205         10,471
                                         -------------- --------------
   Total current liabilities                    14,197         14,298
Long-term debt                                  70,367         68,218
Other liabilities                               64,515         64,413
Accrued restructuring costs                      1,353          1,700
Net liabilities of discontinued
 operations                                      2,843          3,024
                                         -------------- --------------
   Total liabilities                           153,275        151,653
                                         -------------- --------------

Commitments and contingencies

Mandatorily redeemable nonconvertible
 preferred stock, $1,000 liquidation
 value:
  Authorized: 69,970 shares in 2003 and
   in 2002
  Issued and outstanding - none in 2003
   and in 2002                                      --             --

Mandatorily redeemable preferred stock,
 $2,000 liquidation value:
  Authorized: 21,859 shares in 2003 and
   in 2002
  Issued and outstanding - 12,340 shares
   in 2003; 12,877 in 2002                      24,680         25,754

Convertible preferred stock, $2,000
 liquidation value:
  Authorized: 10,000 shares in 2003 and
   in 2002
  Issued and outstanding - none in 2003
   and in 2002                                      --             --

Stockholders' deficit:
  Preferred stock, $1.00 par value:
   Authorized: 898,171 shares in 2003
    and in 2002
   Issued and outstanding - none in 2003
    and in 2002                                     --             --
  Common stock, $.01 par value:
   Class A:
     Authorized:  175,000,000 shares in
      2003 and in 2002
     Issued and outstanding - 63,841,796
      shares in 2003; 63,412,196 shares
      in 2002                                      638            634
   Class C:
     Authorized: 50,000,000 shares in
      2003 and in 2002
     Issued and outstanding - none in
      2003 and in 2002                              --             --
  Other additional capital                     428,969        427,899
  Accumulated deficit                         (514,760)      (512,828)
  Accumulated other comprehensive income       (63,665)       (63,773)
                                         -------------- --------------
   Total stockholders' deficit                (148,818)      (148,068)
                                         -------------- --------------
   Total liabilities, redeemable
    preferred stock and stockholders'
    deficit                                  $  29,137      $  29,339
                                         ============== ==============