Video Display Corporation in Agreement to Sell Z-AXIS Inc. Subsidiary

Video Display Corporation in Agreement to Sell Z-AXIS Inc. Subsidiary

TUCKER, Ga., Oct. 3, 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 has been
negotiated to sell its Z-AXIS Inc. subsidiary (Z-AXIS) to a newly-incorporated
NY-based company formed by the current management of Z-AXIS. The sale includes
Z-AXIS as well as its BEAR Power Supplies and Boundless Technologies business

Under the terms of the agreement, Video Display Corporation (VDC) will receive
ninety percent of the sale proceeds in cash at closing with the remaining
balance in the form of a subordinated note receivable from the buyer of
Z-AXIS. The entities being sold primarily design and manufacture specialty
power supplies for the global market and offer contract manufacturing services
to customers in the NY State, New England and mid-Atlantic market areas. As
part of the VDC family of companies, Z-AXIS accounted for approximately 21.0%
of the total corporate revenues for the most recent fiscal year ended Feb 28,

The transaction, which has been approved by the boards of directors of both
companies, is subject to customary closing conditions including review, and it
is expected to close on or about November 15, 2013. All current employees and
management staff are expected to remain in place at the Z-AXIS headquarters
and manufacturing facility in Phelps, NY.

"Z-AXIS is excited to be embarking on this new experience as a privately held
and managed entity, which ensures the continued employment of our local
personnel with the same experienced team that has built an extremely
successful company in upstate NY," stated Michael Allen, president of the of
the Z-AXIS subsidiary of Video Display Corporation. "We are looking forward to
this opportunity to continue our growth pattern well into the future here in
Ontario County, NY."

Ron Ordway, CEO of Video Display Corporation, commented, "The sale of our
Z-AXIS, BEAR Power and Boundless 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, "Subsequent to closing of the Z-Axis
transaction, VDC will have accomplished its prime goal of eliminating all bank
revolver and term debt leaving the Company with substantial cash reserves. We
are continuing to discuss the sale of additional subsidiaries with parties
interested in acquiring segments of the VDC family of display companies and
will report on progress of those negotiations as it occurs."

About Video Display Corporation

The VDC family of companies consists of 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 Z-AXIS and Bear Power, the
expected timing of the closing of the acquisition and the number of employees
who are expected to remain subsequent to 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; Z-AXIS and Bear Power may not
be able to maintain or grow 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 Z-AXIS and Bear Power
disposition may not be consummated due to the failure to satisfy the various
conditions to closing, including access to the capital by the Buyer to
complete the transaction, the need for banking approvals 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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