Ampex Corporation and Maxtor Set Terms for Use of Keepered Media to Improve Performance of Hard Disk Drives.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 23, 1996--Ampex Corp. (AMEX:AXC) and Maxtor Corp. announced today that they have agreed to terms upon which Maxtor(R) may acquire disk drive platters incorporating Ampex's keepered media technology for inclusion in disk drive programs during 1997.

The agreement sets prices and other terms but does not oblige Maxtor to complete any disk drive program or to purchase any minimum quantity of keepered media disk platters. The new disk drive programs would use keepered media to achieve leading-edge capacity at a lower cost than alternative technologies. The agreement permits Maxtor to use keepered media with both inductive and magneto-resistive heads.

Maxtor Corp., headquartered in Milpitas, Calif., develops, manufactures and markets information storage products for desktop and mobile computer systems. A wholly-owned, independently operated subsidiary of Hyundai Electronics America, Maxtor had sales of $1.2 billion in the calendar year 1995.

Maxtor's parent company, Hyundai Electronics America, has begun the establishment of an operation, Max Media, that will manufacture disk drive platters for use by Maxtor commencing in 1997.

Initially, the keepered media that Ampex will supply to Maxtor is expected to be produced by one or more commercial manufacturers of disk drive platters and by Max Media. Ampex has previously announced that it presently does not have the facilities to manufacture commercial quantities of disk media and has not decided whether or not to invest in such facilities in the future.

Ampex Corp. is one of the world's leading innovators in the fields of magnetic recording, digital image processing and high-performance digital storage for the visual information age. Ampex is currently focusing its technology on the emerging market for mass data storage.

During its 52-year history of innovation, Ampex has been granted thousands of patents and numerous awards for technical achievement. Headquartered in Redwood City, Ampex's customers today include such leading organizations as Boeing, Eastman Kodak, Mobil Oil, Time Warner and NASA.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to the Company's keepered media development program and which involve certain risks and uncertainties. Information on potential factors that could cause the Company's actual results or outcomes to differ materially from those anticipated are discussed in the Company's letter to its stockholders dated the date hereof, and under the caption "Keepered Media Research and Development" and elsewhere in the Company's filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 1995 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, June 30, and September 30, 1996. The Company undertakes no obligation to release publicly any revisions to such forward-looking statements in order to reflect events or circumstances occurring after the date hereof.

CONTACT: Ampex Corp.

Karen D. Schweikher, 415/367-4111