Video Display Corporation Signs Acquisition Agreement.

Business Editors

ATLANTA--(BUSINESS WIRE)--May 3, 2000

Video Display Corporation (NASDAQ-NMS:VIDE), in a major move toward becoming the consolidated source for global requirements for military, medical and industrial Cathode Ray Tubes, (CRTs) today announced an agreement to acquire Lexel Images Systems, Inc. of Lexington, Kentucky (Lexel), a world class manufacturer of CRTs and Direct View Storage Tubes (DVST).

Lexel's history dates back to the 1930s as Allan B. DuMont Labs, which was acquired by Fairchild Camera Corp. 1962 and in turn by Thomson CSF in 1972. In 1988, the consolidated operations subsequently were acquired by Hughes (NYSE: GMH) along with the acquisition of the DVST product line from Westinghouse, Horseheads, New York, in 1989 and Projectron, Inc. of Lexington, Kentucky in 1987. In 1991, Hughes merged all of the companies into Hughes Display Products and relocated to the new state of the art 150,000 square ft facility at the Coldstream Research Park, Lexington, Kentucky. In 1994, the Photo Recording product line was acquired from Litton Industries (NYSE:LIT) and merged into Hughes Lexington (now Lexel Imaging Systems, Inc.)

Lexel Imaging Systems has developed specialized processes used in the manufacturing of a wide range of monochrome CRTs for commercial and military programs. Lexel supplies tubes for Heads-Up, Heads-Down, and Helmet Display applications for such aircraft or programs as A7, F15, F16, JAS, MH47, S3A, Tornado-MLU, and NASA Space Shuttle. Other areas of experience include a long list of military programs for both surface and sub-surface naval vessels. In addition, Lexel is also active in supplying CRTs for ground vehicles having produced CRTs for the thermal imaging sights used in the Army M1 tank and others.

Lexel will continue to operate from its headquarters in Lexington, Kentucky and Video Display has agreed to redeploy other existing assets and product lines to the Lexington facility. The acquisition of Lexel Imaging, whose current revenue run rate is approximately $10,000,000 annually, is expected to be accretive to Video Display's earnings from the date of acquisition.

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.