Ampex Corporation Reports Second Quarter Net Income of $6.0 Million.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 31, 1995--Ampex Corporation (OTC:AMPX) reported today net income of approximately $6.0 million for the second quarter of 1995, resulting in primary and fully diluted earnings per share of $0.16 and $0.15, respectively. In the second quarter of 1994, the Company reported net income of $3.4 million or $0.08 per share. Net sales in the second quarter of 1995 were $24.0 million, compared to $36.5 million in the second quarter of 1994.

Significant factors contributing to the improvement in earnings were an increase in royalty receipts to $6.6 million from $0.5 million in the prior period, a reduction in interest expense to $0.9 million from $2.1 million, and reductions in all major categories of operating expenses. Gross margin increased to 44.1%, compared to 37.3% for the second quarter of 1994. Royalty income in the second quarter of 1995 included a settlement of $5.3 million relating to prior periods.

Commenting on the second quarter results, Edward Bramson, Chairman, said "As was the case in the first quarter of this year, we are no longer selling any products that have been discontinued. As a result, while second quarter revenues were lower than those of last year, they were at essentially the same level as those in the first quarter. Royalty income received in the second quarter continued to relate primarily to 8mm consumer products, especially camcorders."

For the first six months of 1995, the Company generated net income of $11.6 million, compared to a loss of $0.6 million for the first half of 1994. Six month primary and fully diluted earnings per share were $0.33 and $0.26 respectively, compared to a loss of $0.11 per share for the comparable 1994 period. Net sales were $48.2 million for the first half of 1995, compared to $71.7 million for the first half of 1994. During the six month period ending June 30, 1995, the Company received royalty income of $12.7 million, which included non-recurring settlements of $10.5 million relating to prior periods, compared with total royalty receipts of $1.1 million in the comparable 1994 period.

Ampex Corporation is one of the world's leading innovators in the fields of magnetic recording, image processing and high-performance digital storage. Ampex is currently focusing its technology on the emerging market for mass data storage in the visual information age. During its 50 year history of innovation, Ampex has been granted thousands of patents and numerous awards for technical achievement. Headquartered in Redwood City, California, Ampex's customers today include such leading organizations as Boeing, Eastman Kodak, Mobil Oil, Time Warner and NASA. -0-

                        Ampex Corporation
               Consolidated Statements of Operations
                 (in thousands, except share data)
                            (unaudited)

                             Three months ended   Six months ended
                                  June 30,             June 30,
                               1995      1994       1995     1994

Net sales                    $24,043   $36,541    $48,158   $71,748
Cost of sales                 13,445    22,927     27,089    45,090
Gross profit                  10,598    13,614     21,069    26,658

Selling and administrative     5,962     6,594     11,188    13,858
Research, development and
  engineering                  4,079     4,501      8,166    10,048
Royalty income                (6,638)     (542)   (12,659)   (1,102)
Operating income               7,195     3,061     14,374     3,854

Interest expense                 944     2,077      1,878     6,513
Amortization of debt financing
  costs                           31       130         80       160
Interest income                 (309)     (198)      (590)     (326)
Other (income)
  expense, net                   (73)   (2,620)        48    (2,551)
Income before income taxes     6,602     3,672     12,958        58

Provision for income taxes       646       306      1,373       698

Net income (loss)             $5,956    $3,366    $11,585     $(640)

Primary income (loss) per
  share :
Income (loss) per share       $ 0.16    $ 0.08    $  0.33    $(0.11)
Weighted average
  number of common
  shares outstanding     36,424,134  23,097,226  33,076,050  20,553,985

Fully diluted income (loss)
  per share :
Income (loss) per share       $ 0.15    $ 0.08    $  0.26    $(0.11)
Weighted average
  number of common
  shares outstanding     45,012,978  23,097,226  48,841,006  20,553,985

                        Ampex Corporation
                    Consolidated Balance Sheets
                  (in thousands, except share data)
                             (unaudited)

                                          June 30,  December 31,
                                            1995       1994

ASSETS
Current assets:
 Cash and cash equivalents                $ 5,206     $12,058
 Short-term investments                    15,494       7,850
 Accounts receivable (net of
  allowances of $3,538 and $5,404)         14,829      12,238
 Inventories                               10,977      10,053
 Other current assets                       3,081       3,020
  Total current assets                     49,587      45,219

Property, plant and equipment              38,699      40,694
Other assets                                1,175       1,546
 Total assets                             $89,461     $87,459

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
 Notes payable                            $ 2,817     $ 3,452
 Accounts payable                           6,042       6,825
 Income taxes payable                       4,547       4,075
 Accrued restructuring costs                3,690       6,566
 Other accrued liabilities                 25,934      28,261
  Total current liabilities                43,030      49,179

Long-term debt                             31,390      30,805
Other liabilities                          53,576      56,754
Deferred income taxes                       1,948       1,981
Accrued restructuring costs                11,336      11,973
Net liabilities of business held for
 disposition                               48,030      48,030
  Total liabilities                       189,310     198,722

Redeemable convertible preferred stock,
$1,000 liquidation value:
Authorized: none 1995; 87,192 shares 1994
Issued and outstanding - none 1995;
87,192 shares 1994                            --       83,977

Redeemable nonconvertible preferred stock,
$1,000 liquidation value:
Authorized: 69,970 shares 1995; none 1994
Issued and outstanding - 69,970 shares
1995; none 1994                            69,970         --

Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 842,838 shares 1995;
912,808 shares 1994
Issued and outstanding - none                 --           --

Common stock, $.01 par value:
 Class A:
  Authorized:  125,000,000 shares 1995 and 1994
  Issued and outstanding -
  23,485,491 shares 1995; 20,551,944
  shares 1994                                 235         206

 Class C:
  Authorized: 50,000,000 shares 1995 and 1994
  Issued and outstanding - 9,787,424 shares
  1995; 5,927 shares 1994                      98        --

Other additional capital                  352,105     337,950
Accumulated deficit                      (519,320)   (530,905)
Cumulative translation adjustments            146         592
Minimum pension liability adjustment       (3,083)     (3,083)
  Total stockholders' deficit            (169,819)   (195,240)
  Total liabilities and stockholders'
    deficit                              $ 89,461    $ 87,459

CONTACT: Ampex Corporation

Karen D. Schweikher, 415/367-4111