Video Display Corporation in Agreement to Sell Lexel Imaging Systems

Video Display Corporation in Agreement to Sell Lexel Imaging Systems

TUCKER, Ga., July 26, 2013 (GLOBE NEWSWIRE) -- Video Display Corporation
(Nasdaq:VIDE), a global leader in design and manufacture of specialty displays
and display solutions, today announced a definitive agreement was signed to
sell primarily all of the assets and liabilities of the Company's Lexel
Imaging Systems, Inc. subsidiary (Lexel) to Citidal Partners LTD, LLC.

Under the terms of the agreement, Video Display Corporation (VDC) will receive
cash and Citidal debt securities for the sale of Lexel Imaging Systems, a
manufacturer of specialty Cathode Ray tubes for military, medical, industrial
and simulation market requirements. Lexel, which is part of the VDC family
of display companies, accounted for approximately 13 percent of the total
corporate revenues for the most recent fiscal year ended February 28, 2013.

The transaction, which has been approved by the boards of directors of both
companies, is subject to customary closing conditions, including review and
approval of VDC's commercial banker, PNC Bank, and it is expected to close on
or before September 23, 2013. All of Lexel's current employees and management
staff are expected to remain in place in Lexington, KY and will join Citidal
at the close of the transaction.

"Lexel Imaging is excited to be joining with the experienced Citidal team as
their many industrial contacts and connections are expected to greatly enhance
and expand the scope of products and markets currently being served by our
company," said Bill Frohoff, president of the Lexel Imaging subsidiary. "This
acquisition enables Lexel to address market opportunities in numerous arenas
outside of the legacy CRT display business and complements our strong
electronics manufacturing capabilities."

Ron Ordway, CEO of Video Display Corporation, commented, "The sale of our
Lexel Imaging subsidiary is part of an overall program, announced in September
of 2012, to enhance VDC shareholder value through the sale of VDC, either in
whole or through the sale of its integral divisions and subsidiaries as
opportunities presented themselves in the best interest of the
shareholders."He further stated, "We are continuing to discuss the sale of
additional subsidiaries with parties interested in acquiring components of the
VDC family of display companies and will report on progress of those
negotiations as it occurs."

About Video Display Corporation

VDC companies are leading designers, manufacturers, and suppliers of displays
and display systems for the most demanding OEMs, prime contractors and
specialty contractors around the world. The VDC companies have led the way
over the past 38 years providing standard and custom products to today's
leading global OEMs crossing all major display requirements in defense,
aerospace, industrial automation, medical, and transportation as well as
training and simulation markets. 

This news release contains certain forward-looking statements, including the
expected benefits of our pending disposition of Lexel Imaging Systems, the
expected timing of the closing of the acquisition, and the number of employees
who are expected to join Citidal at the closing of the transaction, which are
based on our current expectations and are subject to numerous risks and
uncertainties that may cause these forward-looking statements to be Risks that
may cause these forward-looking statements to be inaccurate include among
others: we may experience delays in the timing; Citidal may not be able to
maintain and grow or maintain the customer relationships required to achieve
its anticipated revenue and margins, and therefore fail to perform on its debt
obligations to VDC; the Company may incur one-time charges, adverse tax
consequences, amortization of intangible assets or impairment of goodwill,
which could harm our results of VDC's operations; the Lexel Imaging Systems
disposition may not be consummated due to the failure to satisfy the various
conditions to closing, including the need for banking approval; and the other
risks detailed from time to time under the caption "Risk Factors" and
elsewhere in our Securities and Exchange Commission filings and reports,
including, but not limited to, our Annual and Quarterly Reports on Forms 10-K
and 10-Q.

CONTACT: Ronald D. Ordway, Chairman and CEO
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