Video Display Corporation to Appeal NASDAQ Notification

Video Display Corporation (NASDAQ:VIDEE) today announced
that on January 24, 2006 Video Display Corporation (the "Company")
received a notice from the staff of The NASDAQ Stock Market stating
that the Company is not in compliance with NASDAQ's requirements for
the continued listing of the Company's securities on The NASDAQ Stock
Market. This notice was sent automatically due to the Company's
failure to timely file its Quarterly Report on Form 10-Q for the
fiscal quarter ended November 30, 2005, as required under NASDAQ rule
4310(c)(14). As previously reported by the Company in a press release
dated January 23, 2006, the Company's Form 10-Q was due to be filed on
January 17, 2006, but could not be filed within the prescribed time
period for reasons outlined in the press release. The NASDAQ notice
also stated an "E" will be appended to the end of the Company's common
stock trading symbol, changing the symbol to "VIDEE" until the
noncompliance is corrected. The notice from NASDAQ does not by itself
result in delisting of the Company's securities if the Company, within
seven calendar days from the date of such notice, requests a hearing.
   On January 30, 2006, subsequent to receiving the NASDAQ notice of
delisting, the Company filed its Form 10-Q for the fiscal quarter
ended November 30, 2005, having resolved the accounting issues that
had led to the delay in filing. The Company intends to make a timely
request for a hearing with the NASDAQ Listing Qualifications Panel on
this matter. The request for a hearing will stay the delisting pending
the hearing and a decision by the Panel. At the hearing, the Company
intends to outline the cause of the late filing and the steps it has
made and intends to make to prevent late filings in the future. While
the Company expects the hearing to be successful, there can be no
assurance that the Panel will accept the Company's position and grant
its request for continued listing. The Company may appeal any adverse
decision of the Panel to the NASDAQ Listing and Hearing Review
Council. Any such appeal by the Company would not stay the ruling of
the Listing Qualifications Panel.
   Video Display Corporation designs, develops and manufactures
unique solutions for display requirements for military, medical and
industrial use with emphasis on high end training and simulation
applications. Its product offerings include ruggedized CRT and AMLCD
displays as well as complete projection systems utilizing VDC's
Marquee(TM) line of projectors. Video Display Corporation operates 11
display design and manufacturing plants plus eight sales facilities
throughout the United States and Europe.
   This document contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. In
addition, from time to time, Video Display Corporation or its
representatives have made or may make forward-looking statements,
orally or in writing. Such forward-looking statements may be included
in, but are not limited to, various filings made by the Company with
the Securities and Exchange Commission, press releases or oral
statements made with the approval of an authorized executive officer
of the Company. Actual results could differ materially from those
projected or suggested in any forward-looking statements as a result
of a wide variety of factors and conditions, including items discussed
in the Company's Form 10-K for the year ended February 28, 2005, filed
with the Securities and Exchange Commission. The Company undertakes no
duty to publicly update forward-looking statements, whether as a
result of new information, future events or otherwise.