VDI Media Acquires Fast-Forward Inc.

HOLLYWOOD, Calif.--(BUSINESS WIRE)--Dec. 1, 1997--VDI Media (NASDAQ:VDIM) today announced it has completed the acquisition of Fast-Forward, Inc., San Francisco's largest video duplication and distribution company.

A privately-held business, Fast-Forward targets major corporate customers in the Bay Area and Silicon Valley, as well as advertising agencies and cable operators. Fast-Forward produced approximately $3.0 million in revenues over the past twelve months and is being acquired for a combination of cash and VDI common stock.

VDI management believes Fast-Forward is well positioned to take advantage of the important northern California marketplace. Fast-Forward's core business is the delivery of television commercials, programming, and corporate advertising and publicity campaigns for television stations, cable systems and other paid television providers. Major customers include Chevron, Bank of America, Pixar, The Gap, Macy's, Charles Schwab & Co., Sun Microsystems, Oracle and Robertson Stephens. Fast-Forward was founded in 1983 and operates from an 11,000 square foot facility in the heart of San Francisco.

Luke Stefanko, Chairman of the Board and Chief Executive Officer of VDI Media, stated, "We are pleased that we have completed an acquisition that substantially expands our presence and market share in San Francisco. Our businesses are similarly aligned on an operating basis, and we are therefore confident in our ability to realize operating efficiencies quickly. As evidenced by their outstanding customer base, Fast-Forward has built a reputation on high quality, reliable service. The acquisition fits well within our valuation guidelines and gives us a strong foundation from which to grow our business in northern California. We look forward to the continued contributions of Fast-Forward's founders, Mark O'Brien and Paul Grippaldi, who will continue to head the business from San Francisco."

Mark O'Brien stated, "VDI sets the standard for service and quality in our industry and we are delighted to come into their fold. Fast-Forward gives VDI a physical presence in the San Francisco Bay Area and Silicon Valley markets and we are confident our customers will recognize the benefits of working with a large national organization."

VDI Media provides quality video duplication and distribution services. The company delivers commercials, movie trailers, electronic press kits, infomercials, and syndicated programming, by both physical and electronic means, to more than 900 syndicated TV stations and cable companies nationwide. Electronic distribution, using fiber optics and satellites, is provided through VDI's Broadcast One(R) operations. VDI's video services include the duplication of video in all formats, standards conversion, closed captioning, and transcription. Customers include major motion picture studios, including Fox, Columbia/Tri Star, MCA, Disney, Paramount, MGM, Warner Bros., and advertising agencies TBWA Chiat/Day, Leo Burnett, Saatchi & Saatchi and Young & Rubicam.

Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements. Such risks and uncertainties include, without limitation, the Company's dependence on the timely development, introduction and customer acceptance of new services, the impact of competition and downward pricing pressures, the effect of changing economic conditions, risks in technology development, customer and industry concentration, risks of acquired business, and other risks and uncertainties detailed periodically in the Company's filings with the Securities and Exchange Commission, including the Company's Prospectus dated February 18, 1997 and its Form 10Q for the quarter ended September 30, 1997.

CONTACT: VDI Media

Donald Stine, 213/957-5500

[e-mail]

or

Lippert/Heilshorn & Associates

Lillian Armstrong/Adam Aron, 415/433-3777

[e-mail]