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

To: flickerful who wrote (4536)	1/19/1999 10:38:00 AM
From: James T. Whittaker	Read Replies (1) \| Respond to of 17679

Ampex Corp. to Acquire Majority Interest inWeb Services Affiliate January 19, 1999 10:32 AM REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 19, 1999--Ampex Corp. today announced that it intends to acquire a majority interest in the capital stock of Reiter Associates Inc., increasing its holding from the approximately 20 percent level that it purchased in September 1998. Privately held Reiter Associates, with servers located in the Philadelphia, Washington, and Northern California areas, is a rapidly growing provider of turnkey services for enterprises that use the world wide web to achieve their strategic business objectives. Reiter Associates' services include electronic commerce support, web hosting, Internet consulting and monitoring. "The additional funds from Ampex will enable us to accelerate our growth nationally and to add new services," stated Carl Reiter, president and chief executive officer of Reiter Associates. "A part of the new investment will be used to establish a network operations and monitoring center. This is vital to maintain quality as we expand geographically, and it allows us to support and participate in Ampex's strategy for expansion in web-related markets," he said. Edward Bramson, chief executive officer of Ampex, stated, "Associating with Carl and his talented team brings us a key capability for building our presence in the web-based market area. "From its beginning, Reiter Associates has shown a commitment to leadership in quality of technology and service that is distinctive in such a young, innovative company. This is our main reason for choosing Reiter to work with." Ampex Corp., a pioneer in audio, digital video and digital image processing, has participated in the evolution of the Internet since the origins of the system in the 1980s. The company is building a marketing-oriented organization to leverage its digital image technology and expertise internally and through selected strategic investments. The company's goal is to develop 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 Reiter Associates investment were not disclosed.