VDC DISPLAY SYSTEMS and 3D Perception Announce Strategic Cooperation Agreement.

CAPE CANAVERAL, Fla. -- VDC Display Systems, a division of Video Display Corporation (NASDAQ:VIDE) and manufacturer of the Marquee and ESCP lines of projectors, is pleased to announce signing of a Strategic Cooperation Agreement with 3D Perception of Asker, Norway, a supplier of unique digital technology for geometrical correction of projected images. The execution of the Agreement facilitates close cooperation of sales and marketing activities, as well as joint development of new products for the simulation, training, and command and control marketplaces.

"This Strategic Cooperation Agreement recognizes the complimentary capabilities of both VDC Display Systems and 3D Perception," says Mike Raines, VDC Display Systems Vice President of Business Development. "Through this agreement, our marketing and sales groups will continue to approach their respective markets while our technical teams are establishing close cooperation to undertake the design and manufacture of new next-generation display system products, further empowering our customers to integrate industry-leading visual system solutions."

Knut Krogstad, Managing Director of 3D Perception, adds, "This agreement will provide a means to expand our product solutions further within the US marketplace, while supplementing the existing 3DP product line with new CRT and LCoS projection technologies from VDC. Working with VDC Display Systems is a key strategic step for our company and we are excited about the technical cooperation for the design of new projection technologies."

Please stop by VDC Display Systems' Booth #1573 and the 3D Perception Booth #1772 at the 2006 I/ITSEC Conference held on Dec 4-7 at the Orange County International Convention Center in Orlando, Florida. For more information, contact [e-mail] or [e-mail].

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 with additional sales facilities throughout the United States and Europe. For more information, visit the Company's web site at www.videodisplay.com.

About 3D Perception

3D perception is a Norwegian-based, limited-stock company with its head office in Asker, Norway and offices in Japan, China, UK, and in the USA in Orlando, Florida. The company supplies the Simulation, and Command and Control industries with projection, and projection related equipment. Its main products include unique digital technology for geometrical correction of images when projected onto curved screens. The technology also makes it possible to seamlessly combine images from two or more projectors, and to adjust both the color balance and gamma in order to obtain smooth and realistic images in complicated projection theatres. The unique technology is available in projectors, in image generators and as stand-alone units.

For more information visit 3D perception's website at www.3d-perception.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.