Ampex Corporation Files Prenegotiated Reorganization Plan to Facilitate Financial...

Ampex Corporation Files Prenegotiated Reorganization Plan to Facilitate Financial Restructuring

Ampex Corporation Conducting Business in the Ordinary Course
REDWOOD CITY, Calif.--(Business Wire)--
Ampex Corporation (Nasdaq:AMPX) today announced that on March 30,
2008, Ampex Corporation and its U.S. subsidiaries filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
Prior to filing, the Company negotiated with and obtained the support
of the majority of its secured creditors and its largest unsecured
creditor for the terms of a pre-negotiated plan of reorganization (the
"Plan"), as evidenced by the plan support agreement filed
contemporaneously with the Company's voluntary petitions for relief
under Chapter 11. Concurrently with the commencement of these cases,
the Company filed a motion for approval of the disclosure statement
with respect to the Plan and related solicitation procedures. The
Company believes that it will emerge from Chapter 11 no later than
Fall 2008. During the Chapter 11 proceedings, the Company will
continue to operate its business without interruption as a
debtor-in-possession. All of the Company's employees will be retained,
offices and manufacturing facilities will remain open and all customer
support and warranty programs will continue as planned.

Upon emergence from Chapter 11, Hillside Capital Incorporated
("Hillside"), the Company's largest secured and unsecured creditor,
will provide new financing to the Company that will be used for
working capital purposes, to repay certain long term obligations,
including certain senior secured notes, and to fund future pension
obligations. Ampex began to report in July 2007 that it might be
forced to take this action in order to facilitate an orderly financial
restructuring. As was disclosed in its filings with the Securities and
Exchange Commission over the previous months, Ampex has been
negotiating a consensual refinancing of certain notes that were issued
to Hillside over the past several years with respect to pension
contributions made by Hillside for the benefit of the Company's
defined benefit plans. The Plan is the result of months of
arm's-length negotiations between the Company, Hillside and holders of
a majority of the face amount of the Company's senior secured notes.

The overall purpose of the Plan is to provide for the
restructuring of the Company's liabilities in a manner designed to
maximize recovery to all stakeholders and to enhance the Company's
financial viability by de-levering the Company's capital structure,
providing additional liquidity and arranging a long-term financing
solution to future pension contributions that does not over-leverage
the Company in future years. Under the Plan, it is contemplated that
trade creditors will remain unaffected and will continue to receive
cash payments as their claims become due in the ordinary course.
Because the Company's debt exceeds the amount of its assets, its
existing common stock currently has no value, and therefore will be
cancelled on the effective date of the Plan. Under the terms of the
proposed Plan, new equity in the reorganized Company will be issued to
certain creditors. Although holders of existing common stock will not
receive new equity under the Plan, those holders that do not object to
the Plan may be eligible to receive some consideration. The Plan also
contemplates that the new equity in the reorganized Company will not
be registered or traded on any public exchange.

Ampex Conducting Business in the Ordinary Course

D. Gordon Strickland, Ampex's President and Chief Executive
Officer, noted that the court filing is not expected to have any
significant impact on Ampex's day-to-day operations: "Ampex Data
Systems Corporation will continue to sell and service data acquisition
and instrumentation recorders and we will continue to license our
intellectual property to manufacturers of consumer digital video
products. While the restructuring will be an important step towards a
more successful future, our primary focus will continue to be our
customers and their satisfaction with our products and services."

Mr. Strickland explained, "In recent years, Ampex has been
constrained by its highly leveraged capital structure and by the
continuing burden of its significant legacy pension liabilities. Quite
simply, we have too much debt. We intend to use the Chapter 11 process
to reduce these obligations significantly and to develop and implement
a new capital structure that will allow us to invest in our business."

Mr. Strickland concluded, "Fortunately, the fundamentals of our
business remain strong and provide an excellent foundation for the
future. We expect that Ampex will emerge from its Chapter 11
reorganization a stronger, more financially viable company,
well-positioned for profitable growth."

Other Matters

The Company expects to file a Form 12b-25 with the Securities and
Exchange Commission to obtain a 15-day extension to file its 2007
Annual Report on Form 10-K. Ampex is unable to file its 2007 Form 10-K
within the prescribed period because additional time is required to
complete the financial statements, footnotes and disclosures in order
to incorporate information contained in the Plan and the related
disclosure statement. The Company currently expects to be able to file
its 2007 Form 10-K within the 15-day extension period, but there can
be no assurance that it will be able to do so.

Ampex

Ampex Corporation, headquartered in Redwood City, California, is
one of the world's leading innovators and licensors of technologies
for the visual information age. Additional information about Ampex is
available on the Internet at www.ampex.com, as well as on a new
toll-free Ampex Restructuring Hot Line at (800)-767-8328.

This news release contains predictions, projections and other
statements about the future that are intended to be "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could
cause the Company's actual results, performance or achievements, or
industry results, to differ materially from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such risks, uncertainties and other
important factors include, but are not limited to, those described in
the Company's 2007 Annual Report on Form 10-K for the fiscal year
ended December 31, 2007, which is expected to be filed with the
Commission shortly, and its Quarterly Reports on Form 10-Q, as well as
the following: the effects of the Company's Chapter 11 filing on the
Company and the interests of various creditors, equity holders and
other constituents; Bankruptcy Court rulings in the Chapter 11 case
and the outcome of the proceeding in general; the length of time the
Company will operate under the Chapter 11 proceeding; the risks that
unasserted claims against the Company may exceed the amounts currently
estimated by the Company, and the impact that these claims may have
upon the Company's ability to implement the Plan and upon the Chapter
11 case generally; increased legal costs related to the bankruptcy
case and other litigation; the Company's ability to maintain contracts
that are critical to its operation, to obtain and maintain normal
terms with customers, suppliers and service providers and to retain
key executives, managers and employees; the Company's ability to
manage costs, maintain adequate liquidity, maintain compliance with
debt covenants and continue as a going concern. In assessing
forward-looking statements, readers are urged to consider carefully
these cautionary statements. Forward-looking statements speak only as
of the date of this release, and the Company disclaims any obligation
or undertaking to update such statements.

Ampex Corporation
Karen L. Dexter, 650-367-4111
Director, Investor Relations

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