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VIDEO DISPLAY COMPLETES LOAN AGREEMENT WITH SOUTHTRUST

 VIDEO DISPLAY COMPLETES LOAN AGREEMENT WITH SOUTHTRUST
 ATLANTA, Sept. 22 /PRNewswire/ -- Video Display Corporation (NASDAQ-NMS: VIDE) announced today that it has entered into a loan refinancing arrangement with the Atlanta office of Alabama-based SouthTrust Bank.
 The completed agreement includes a total of $17 million in debt financing of which $11.5 million is in the form of a revolving line of credit collateralized by receivables and inventory with the remaining $5.5 million in the form of term loan financing backed by fixed assets. (SouthTrust Bank had previously been a 50 percent participant in the company's loan package.)
 The transfer of debt financing from its previous lending institution to SouthTrust Bank enables Video Display to lower its annual interest expense, increase available cash resources, and have greater flexibility in managing inventory. The reduction in interest expense is estimated to save the company approximately $100,000 annually. In further defining the advantages of the new banking relationship, Video Display recognized that SouthTrust's decision makers are in closer proximity to the company vs. its previous lender. This proximity will allow SouthTrust Bank to expedite Video Display's financial requirements in a more timely manner.
 "The two primary businesses of Video Display, its CRT remanufacturing/recycling division and consumer electronic parts and accessories divisions, will both benefit from the loan restructuring," said Ronald D. Ordway, chairman and chief executive officer of Video Display Corporation. "We are pleased to have established a relationship with a local financial institution which supports our strategic business plan. SouthTrust Bank loan officers have worked with us to facilitate the financing of our day-to-day operations as well as obtaining long- term objectives. The new terms of our loan financing will allow us to more effectively manage our inventory requirements and proceed with our goal of reducing the company's bank debt while maintaining growth."
 Atlanta-based Video Display Corporation, with CRT (cathode ray tube) remanufacturing and component parts manufacturing facilities in seven U.S. locations, two in Mexico, one in the United Kingdom and one in India, is the world's leader in its industry. The combination of Fox International and Vanco, divisions of Video Display Corporation, makes this segment of the company one of the largest domestic distributors of consumer electronic parts and accessories.
 -0- 9/22/92 R
 /CONTACT: Ronald D. Ordway, chairman and chief executive officer of Video Display, 404-938-2080, or Janice J. Kuntz of A. Brown-Olmstead Associates, 404-659-0919, for Video Display/
 (VIDE) CO: Video Display Corporation; SouthTrust Bank ST: Georgia IN: CPR SU:


BN -- AT007 -- 2410 09/22/92 17:59 EDT
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Date:Sep 22, 1992
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