VDC DISPLAY SYSTEMS Announces Development of Ultra High Resolution Projection Solutions.

CAPE CANAVERAL, Fla. -- VDC Display Systems, a division of Video Display Corporation (NASDAQ:VIDE), today announced the development of the first in a new series of high resolution projection systems for the simulation and training industry.

In close cooperation with Lexel Imaging Systems, a sister division of Video Display Corporation, VDC Display Systems has completed design and initial production of an 8" CRT-based projection system which displays up to 4 million resolvable pixels. The new Marquee Ultra 8500HR is available today in production quantities.

"Development of the Ultra 8500HR is an important milestone for VDC Display Systems, as well as Video Display Corporation," commented Marcial Vidal, Vice President of Operations for VDC Display Systems. "In response to requests from our integration customers as well as the marketplace in which they operate, we've taken the initiative to provide the next generation of very high resolution projection displays."

David Mutchler, President of VDC Display Systems states, "Announcement of the new Ultra 8500HR is one of a series of product announcements to come from VDC Display Systems in the coming months. Our new product developments are based upon proven and readily-available CRT technology, for which VDC is the industry leader, as well as newly developed non-CRT technologies such as the new Sony SXRD high resolution LCoS projector. Our goal is to provide and support our customers with a choice of high resolution displays that meet or exceed expectation."

Please stop by Video Display Corporation's Booth #1573 at this year's I/ITSEC Conference held on Dec. 4-Dec. 7 2006 at the Orange County International Convention Center in Orlando, Florida. Or contact [e-mail] for more information.

About Video Display Corporation

Video Display Corporation designs, develops and manufactures unique solutions for display requirements for military, medical and industrial uses with emphasis on high-end training and simulation applications. Its product offerings include ruggedized CRT and AMLCD displays as well as complete projection display systems utilizing VDC's Marquee[TM] and ESCP line of projectors. Video Display Corporation operates eight design and manufacturing plants plus additional sales facilities throughout the United States and Europe. For more information, visit the Company's web site at http://www.videodisplay.com

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.