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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Kirwin who wrote (2911)	7/6/1998 9:26:00 AM
From: hookjock	Read Replies (3) \| Respond to of 17679

Ampex Corporation Agrees to Redeem Preferred Stock in Exchange for New Securities REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 6, 1998--Ampex Corporation (AMEX:AXC) today announced that it has agreed to exchange a package of new securities to redeem all of its approximately $70.0 million of 8% Noncumulative Redeemable Preferred Stock. The new securities consist of 3.0 million Class A Common Shares, $20.0 million at face value of Convertible Preferred Stock and $43.7 million at face value of New Redeemable Preferred Stock. The Class A Common Shares being issued represent 5.5% of the diluted total shares outstanding. The Convertible Preferred Stock may be converted at the option of the holders into up to 5.0 million Class A Common Shares representing an additional 9.2% of the diluted total. The Convertible Preferred Stock is not redeemable prior to June 30, 2001, and, thereafter, is redeemable in equal quarterly installments through March 31, 2008. The new Redeemable Preferred Stock is redeemable in quarterly installments commencing June 30, 1999 and ending December 31, 2008. Both issues of Preferred Stock are entitled to dividends at an annual rate of 8% if declared by Ampex's board of directors. Dividends that are not declared do not accumulate. Mandatory or optional redemption payments may, at the option of the Company, be made in cash or in common stock at the then prevailing market price. The Company indicated that the transaction is expected to improve its liquidity and to materially improve its ability to make future acquisitions. The Company will include shares issuable upon conversion of the Convertible Preferred Stock in its diluted earnings per share computation in future periods. Accordingly, the issuance of the new securities will dilute reported earnings by approximately 14.7%. Ampex Corporation, headquartered in Redwood City, California, 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, Boeing, CNN, Mobil Oil, HBO, Time Warner and NASA. Any statements contained herein that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Information on potential factors which could affect the Company's actual results of operations are included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 1997, its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1998, and its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1998, which is expected to be filed shortly. CONTACT: Ampex Corporation Karen D. Schweikher, 650/367-4111 KEYWORD: CALIFORNIA BW0076 JUL 06,1998

To: Thomas Kirwin who wrote (2911)	7/6/1998 9:48:00 AM
From: Swamp Fox	Respond to of 17679

AT&T - TCI merger plays on Ampex's strategy of being the worlds leading source for high quality digital image processing. The merger is a good play on Ampex's technology (the aquisition, processing and storage of digital image data) because of the massive amounts of information "tansported, warehoused and delivered". Bransom mentioned that in order for sales of DST to increase the bandwidth would have to open up (AT&T is one). And, AT&T is Ampex's customer. Couple that fact with all the Fortune 500 companies who have to be on the Internet (if they want to stay in business) advertising products and service with (high quality) full motion video and AUDIO. Next, the "last mile" in the Internet, DTV and digital broadcast delivery is a great opportunity for Ampex (patents) technology (the aquisition, processing and storage of digital image ((and AUDIO)) data) for consumers. There are many opportunities in this consumer mult-BILLION market. Ampex has said it wants to be in the high volume consumer market with ? thier patents or a product. This is not a leap of faith by Swamp Fox, I remember some where in the 10 Q or K manufacturers are using our patents in DVD, joysticks, computer animation games... The DIGITAL REVOLUTION is happening. It is one major driving force behind tremendous economic growth. It is empowering, freeing and wealth generating. Maybe Gus, Jubimer, Hal, someone can add to this.... Swamp Fox