Lexel Imaging Systems to Acquire Division of Imaging and Sensing Technology.

Business Editors

ATLANTA--(BUSINESS WIRE)--May 16, 2000

Lexel Imaging Systems, wholly owned subsidiary of Video Display Corporation (NASDAQ-NMS:VIDE) has agreed in principal to acquire the Electro Optical division (EO Division) of Imaging and Sensing Technology, Horseheads, New York (IST). The Companies announced today that an Acquisition Agreement had been signed and approved by their respective Boards of Directors pending completion of the final Sales Contract. The transaction is expected to be closed prior to May 31, 2000.

The EO Division was formerly a product group of Westinghouse Corporation and includes the 1997 acquisition of CRT Scientific Corporation of Van Nuys, California. Its product line includes both specialty cathode ray tubes and armored vehicle displays. The EO Division brings to Lexel over 40 years of leadership in high performance CRT design in advanced imaging and display applications. Their film recording CRTs are widely used to produce computer generated graphics, high quality photography and medical diagnostic imagery. Other applications include displays for Avionic Cockpit, Military FLIR (Infrared), Light Valve Projection, Radar and Flying Spot Scanner Displays. Their CRT line ranges from 1/2" to large radar direct view displays.

Lexel Imaging Systems will integrate the IST operations into its facilities in Lexington, Kentucky where it also manufactures tubes for Heads-Up, Heads-Down, Helmet and a wide range of other displays for various military, industrial and medical applications.

Video Display Corporation is a leading supplier of a complete range of Display Products and component parts for the Display industry. Its product line consists of a wide variety of electron optic parts for OEM cathode ray tube and monitor manufacturers, monochrome and color CRTs for medical, military, industrial and television applications, high and low end monochrome and color CRT and AMLCD monitor displays for specialty high performance and ruggedized requirements and a complete array of replacement parts for the consumer electronics industry. Video Display is a publicly held Company (NASDAQ:VIDE) headquartered in Tucker, Georgia with 16 manufacturing and 7 warehousing and sales facilities in the United States, Mexico, United Kingdom and mainland Europe.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein.