Go-Video Shareholders Elect Three Directors at Annual Meeting; Amendment to Employee Stock Option Plan Also Approved.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 21, 1997--

Chairman Sees Vibrant Growth in Core VCR, Video Security

and Home Theater Businesses

Go-Video Inc. (ASE:VCR) Thursday announced that shareholders at the company's annual meeting overwhelmingly elected three directors to the company's board of directors and amended its 1993 Employee Stock Option Plan to authorize an additional 500,000 shares of common stock for option grants.

Elected for terms expiring at the 2000 Annual Meeting were Thomas F. Hartley Jr., 47, a principal of J&H Marsh & McLennan of Arizona, and Carmine F. Adimando, 53, chairman of a private investment firm. Elected for a term expiring at the 1999 Annual Meeting was Ralph F. Palaia, 47, a principal of a marketing and distribution firm.

Amended ESOP 

Go-Video shareholders also voted to amend the company's 1993 Employee Stock Option Plan to authorize an additional 500,000 shares of common stock for option grants. Stock options allow the recipient to purchase shares of the company's common stock at a specified price that is not less than its fair market value on the grant date during a fixed period of time following the date.

"This form of long-term incentive is presently the best vehicle by which to link stockholder and management interests because its rewards are realized only if the company's stock price goes up," said Roger B. Hackett, Go- Video's chief executive officer and chairman of the board.

Positive Future

Addressing the shareholders, Hackett said Go-Video is moving ahead "on plan" in its core VCR, video security and home theater business units. In dual-deck VCRs, Hackett stated that Go-Video's development of competing manufacturing sources factored in the company's introduction of the GV-6010 model, which retails for about 20 percent less than any other model the company has offered.

Hackett reported that "we have decreased our manufacturing costs by more than 30 percent, lowered our retail prices across the board, and yet significantly improved our margins during the past two years."

Hackett also predicted strong growth in the wake of the company's recent forays into international markets. Citing the company's recent Western Europe distribution deal with Swiss firm Tensai International, Hackett said, "We're optimistic that European consumers will warm up to the user-friendliness of Dual-Deck's DDV7010 model, as have customers in the U.S. and Japan."

In the area of video security, Hackett stated that the company's addition of new leadership and its broadening distribution were beginning to pay off. "I am confident that these changes will soon bear fruit. I am expecting the first meaningful contribution to profit from the security division during this fiscal year," he added.

In the company's home theater business, Hackett announced continuing development of Go-Video's television products through relationships with Loewe Opta of Germany and Prolux Corp. of California. "Home theater will give us a window on emerging digital technologies that can be expected to find their way into mainstream consumer markets soon," noted Hackett.

Director Profiles

Hartley has served as director of the company since November 1991 and is chairman of the compensation committee of the board of directors. Hartley is currently principal of J&H Marsh & McLennan of Arizona, the Arizona subsidiary of Marsh & McLennan Cos. Inc. (NYSE:MMC), a large insurance brokerage and consulting firm with headquarters in New York, N.Y.

Adimando was appointed as a director of the company in October 1996 and serves on the compensation and audit committees of the board of directors. Adimando is currently chairman and president of CARMCO Investments, LLC, a private investment firm that also provides advisory services in investments, acquisitions, divestitures, investor relations and the creation of shareholder value.

Prior to founding CARMCO Investments in 1996, Adimando was vice president of finance and administration, treasurer and chief financial officer of Pitney Bowes Inc., where he also served as president of Pitney Bowes International Holdings Inc., and has served as chief executive officer of The Wheeler Group, Pitney Bowes' direct-mail subsidiary for business supplies until it was sold in 1992.

Palaia has served as a director of the company since December 1994. He is principal and co-owner of Innovative Marketing Group, a marketing and distribution firm founded in April 1994. From February 1991 to April 1994, Palaia served in several sales and marketing executive positions, most recently as senior vice president of marketing and sales for Philips Consumer Electronics, Knoxville, Tenn., a division of Philips N.V.

Go-Video is an innovative technology company that designs, develops and markets video electronic products for homes and small businesses. Founded in 1984, Go-Video holds patents on the Dual-Deck VCR as well as a variety of other products and systems. The company distributes its products through leading catalogs, direct mail and in more than 4,000 retail outlets.

Since introduction six years ago, the Dual-Deck VCR has established a new category in consumer electronics, with nearly half a million units sold to date. The company is developing video security and high-end digital television products for consumer and commercial applications.

For additional information on Go-Video Inc., via facsimile at no cost, call 800/PRO-INFO, code VCR. -0-

(Note: The company's future expectations and results of operations and the other forward-looking statements contained in this news release, in particular the statements concerning anticipated results of overseas expansion involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and the general economy; competitive factors, such as the pricing and marketing efforts of rival companies; timing of product introductions; and the pace of developing and implementing agreements with overseas distributors. For more information on the potential factors that could affect the company's financial results, please review the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K, the company's quarterly reports on Form 10-Q, and the company's other filings with the SEC.)

CONTACT: Go-Video, Scottsdale

Edward J. Brachocki, 602/998-3400

or

Financial Relations Board, Los Angeles

General Info: Daniel Saks or Larry Delaney, 310/442-0599

Analyst Contact: Moira Conlon, 310/442-0599