Ampex Announces Expiration of Hillside Standstill Agreement

  
    
  
  
    
      Ampex Corporation (Nasdaq:AMPX) today announced that the Amended 
      Standstill Agreement with Hillside Capital Incorporated has been 
      terminated effective January 14, 2008. Prior to the termination, the 
      Company and Hillside were in the process of negotiating a consensual 
      restructuring of Ampex’s indebtedness to 
      Hillside. To date, such negotiations have been unsuccessful, although 
      Hillside has expressed its willingness to continue negotiations.
    
    
      Subsequent to termination of the Amended Standstill Agreement, on 
      January 15, 2008, Hillside demanded immediate payment of approximately 
      $1.3 million of outstanding principal due on the Hillside Notes, and 
      demanded payment of approximately $1.4 million of accrued interest due 
      on the Hillside Notes within 10 days. Hillside also reasserted its 
      allegation, previously disputed by Ampex, that Ampex has breached its 
      obligations under the Hillside/Ampex-Sherborne Agreement dated December 
      1, 1994. During the remainder of 2008, additional payments of principal 
      and interest that are scheduled to be paid to Hillside are estimated to 
      total $6.5 million.
    
    
      If the Company fails to pay the $2.7 million of principal and interest 
      payments that are currently due or to cure the alleged breach, Hillside 
      would be entitled to accelerate repayment of all outstanding Hillside 
      Notes and accrued interest, which totaled $48.7 million at December 31, 
      2007. Any acceleration by Hillside would allow holders of the Senior 
      Notes to accelerate the maturity of those obligations, which totaled 
      $6.7 million at December 31, 2007. The acceleration of these debts would 
      require us to seek protection under federal bankruptcy laws.
    
    
      Ampex Corporation, www.ampex.com, 
      headquartered in Redwood City, California, is one of the world’s 
      leading innovators and licensors of technologies for the visual 
      information age.
    
    
      This release may contain information about the Company’s 
      future expectations, plans and prospects that constitute forward-looking 
      statements for purposes of the safe harbor provisions under The Private 
      Securities Litigation Reform Act of 1995. Actual results may differ 
      materially from historical results or those indicated by such 
      forward-looking statements as a result of a variety of factors 
      including, but not limited to, the progress of the Company’s 
      negotiations with Hillside, the possibility of legal proceedings brought 
      by or against the Company involving Hillside, the PBGC or other parties, 
      the effect of any such litigation, or any filing under federal 
      bankruptcy laws, on the Company’s business, 
      assets, financial condition and ability to obtain additional debt or 
      equity financing and to remain a going concern, the possible need for 
      the Company to sell assets or issue additional debt or equity in order 
      to restructure its debt, the risk of dilution to existing stockholders, 
      the effect of any of the foregoing on the Company’s 
      stock price and exchange listing, and the other risks and uncertainties 
      disclosed in the Company’s Annual Report on 
      Form 10-K and its Quarterly Reports on Form 10-Q, as well as other 
      documents periodically filed with the SEC.