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Monday January 25, 8:32 am Eastern Time
Company Press Release
Ampex Makes Strategic Investment in Internet Video Provider -- TV onthe Web, Inc.
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 25, l999--Ampex Corp. (Amex:AXC - news) today announced that it has purchased approximately 20% of the capital stock of TV onthe Web, Inc. and has the option to acquire a majority interest.
Privately held TV onthe Web (www.tvontheweb.com), which began operations in 1996, is a leading provider of services and content for delivery of compressed video over the World Wide Web. Through its subsidiary, Gardy McGrath International, Inc., the company also provides digital video production services for TV onthe Web and for outside clients.
Based in Reston, Va., TV onthe Web utilizes streaming video technology to deliver material such as live webcasts for various customers and offers a turnkey service including digital video production, compression and archiving. In addition the company currently produces and operates, in conjunction with sponsors, web-based video ''channels'' such as the Air & Space Channel and the Producers' Channel, which ''narrowcast'' focused interest content either live or on demand from video archives.
''We are committed to achieving a dramatic increase in the number of special interest video channels that we offer between now and the end of the year,'' said David Gardy, President and Chief Executive Officer of TV onthe Web. ''With the technology and capital backing of Ampex, we plan to build a robust web-video infrastructure and to launch a high visibility marketing program for TV onthe Web in 1999,'' he added.
Edward Bramson, Ampex's chief executive officer, stated, ''Our strategic investment in the TV onthe Web organization is another significant step in bringing together the capabilities necessary to build Ampex's presence in web-related markets. The entrepreneurial teams that David Gardy has built at TV onthe Web and at Gardy McGrath have the professionalism and attention to quality that we value highly in the people that we associate with.''
Ampex Corp., a pioneering innovator in audio, digital video and digital image processing, has participated in the evolution of the Internet since the origin of the system in the 1980's. The company is building a marketing-oriented organization to leverage its digital image technology and expertise internally and through selected strategic investments, such as those in TV onthe Web and in Reiter Associates (www.reiterassoc.com), a web services provider.
The company will continue to evaluate additional technology initiatives and strategic investments to achieve its goal of developing integrated audio, video and electronic commerce offerings for delivery over the World Wide Web.
''By establishing an early market presence in broadband web applications,'' Bramson stated, ''we are positioning ourselves to expand the range, content and quality of our offerings in line with future increases in the availability of high speed internet access.''
Terms of the TV onthe Web, Inc. investment were not disclosed.
Ampex Corporation (www.ampex.com), headquartered in Redwood City, is one of the world's leading providers of technologies for the acquisition, storage and processing of visual information. Today, Ampex is delivering digital image solutions for large-scale corporate, government, network, entertainment and telecommunications applications.
During its more than 50-year history of innovation, Ampex has been granted thousands of patents and numerous awards for technical achievement. Ampex customers include such leading organizations as AT&T, CNN, Federal Aviation Administration, Fox Television, Netcom, and Prevue Networks.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and unforeseen circumstances that could cause actual results to differ materially from those currently anticipated. Potential risks and uncertainties include, without limitation, those mentioned in the Company's 1997 Annual Report in Form 10-K, its quarterly reports in Form 10-Q for 1998 and its Annual Report in Form 10-K for 1998 which is expected to be filed later in the quarter. Additional specific factors that could prevent the Company from realizing any benefits from its world wide web-based initiatives discussed above include: future demand for the services of TV onthe Web Inc. and Reiter Associates and their ability to obtain and manage resources for growth from their present size and to become profitable; Ampex's ability to transfer audio or video technology to web based applications; its ability to find and consummate suitable strategic investments; to coordinate the strategy of such entities; to resolve conflicts arising from the ownership of less than all of such entities; future demand for web-based audio, video and e-commerce services; and the ability of Ampex or its investees to obtain the managerial, technical or other resources necessary to provide such services or to do so while generating a profit. If Ampex's strategy for the development of world wide web based activities is implemented it is likely that significant expenses would be incurred which could cause the Company to report material losses in future periods. Such losses could negatively affect the price of the Company's securities in future periods and could require it to obtain additional capital, which may be unavailable on satisfactory terms or at all.
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Contact:
Ampex Corp.
Karen D. Schweikher, 650/367-4111
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