Ampex to Sharpen Focus On Internet Video Businesses; Plans Sale of Data Systems Unit; Proceeds Will Fund Growth of iNEXTV.com Internet Video Subsidiary.

Business Editors and Technology Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Feb. 8, 2000

Ampex Corporation (AMEX:AXC) a leader in visual information technology whose holdings include iNEXTV.com, a premier developer and netcaster of Internet video, today announced a corporate reorganization that will redeploy the Company's assets to support its rapidly growing Internet video businesses.

To achieve the goal of strengthening its position as a major provider of Internet video programming and technology, the Company will seek the sale of its Ampex Data Systems Corporation (&uot;Data Systems&uot;) subsidiary. Data Systems, a maker of high-performance mass data storage and instrumentation recorder products for the entertainment industry and government applications, had sales in excess of $50 million in 1999. Ampex expects to record a gain on the transaction and will use the proceeds for investment in iNEXTV, its Internet Technology Group (&uot;ITG&uot;) and other Internet businesses, as well as to retire long-term debt.

&uot;We believe image-based information represents one of the Internet's most attractive growth markets. It is a market that Ampex, with our heritage of innovation in visual technology, is uniquely qualified to capitalize upon,&uot; noted Edward J. Bramson, chairman of Ampex Corporation. &uot;The sale of Data Systems will enhance our ability to exploit this market opportunity by providing funds to support the expansion of our Internet video businesses. Importantly, the sale also sends an unmistakable signal that we are transforming the Company from a traditional product manufacturer to a provider of programming and services for growing Internet video markets, where our visual technology expertise gives us a competitive edge.&uot;

Mr. Bramson added, &uot;With our investment in iNEXTV and our track record of innovation in digital video and many of the other technologies used in video streaming today, we are in an excellent position to capitalize on the significant potential of Internet video. Our Internet offerings are unique, since we not only offer a broad range of content and services, but also have access to technology that can improve the quality of online video broadcasts.&uot; He emphasized that Ampex has been on the cutting edge of broadcast technology since the Company's inception in the 1940s. Ampex pioneered the first practical videotape recorder, digital special effects systems and digital video compression. Its products have won an Oscar, 11 Emmy's and other awards for technical achievement in electronic imaging.

Ampex has engaged the firm of Needham &Co. to provide financial advisory services in connection with the proposed sale of Data Systems. Effective with the financial statements for the fiscal year ended December 31, 1999, the Data Systems business will be accounted for as a discontinued operation.

Following the planned sale of Data Systems, the business of Ampex will primarily consist of iNEXTV.com, the Company's technology licensing operations, and ITG. iNEXTV is the premier global network of targeted video-based affiliates on the Internet. The iNEXTV network includes: AENTV.com, one of the largest on-demand streaming video sites about the entertainment industry; EXBTV.com, producer and netcaster of original Internet programming covering the executive branch of government; TV onthe WEB.com, a leading provider of Internet video services; and TV1 Internet Television, one of Europe's top webcasters. ITG is a developer of Internet video technology, including products that permit improved online video using existing bandwidth. The Company will also retain MicroNet Technology, Inc., which manufactures high-performance disk arrays for use in video and graphics.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and unforeseen circumstances that could cause actual results to differ materially from those currently anticipated. Potential risks and uncertainties include, without limitation, risks of continuing losses from future operations, risks and uncertainties affecting the Company's Internet strategy, and other risks mentioned in the Company's 1998 Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for fiscal 1999, filed with the SEC.