Chairman's letter April 16, 2007

Dear Ampex Shareholder

Having only joined the Company as president and CEO earlier this year, I don't feel it appropriate for me to review Ampex's financial performance during 2006. Instead, I encourage you to read the attached Form 10-K, especially Management's Discussion and Analysis of Financial Condition and Results of Operations. On the other hand, I would like to offer some comments about the commitment the Board of Directors and management have made to pursuing new avenues to increase the value of our Company. As an initial step, we have added two new outside directors, Alain Briançon and Ned Goldstein, who bring experience and expertise in technology and intellectual property monetization. The Company is conducting a thorough review of both its licensing program and Data Systems business with the goal of accelerating growth and profitability. This may involve both adding resources directly into the Company and additional relationships with third parties. Ampex has a long history of successful innovation and I am delighted to be a part of the team that will manage the Company's very promising future. I look forward to reporting to you on our progress. While we focus on the future, we also honor our past. In that regard, the Company acknowledges with gratitude the service of Edward J. Bramson and William A. Stoltzfus, Jr. Mr. Bramson was chairman of the Company for nearly 20 years and guided it successfully through many difficult periods. He has resigned from his positions as an officer and director of the Company to devote more time to his other business interests. Mr. Stoltzfus faithfully served as an independent director for 15 years. He has advised the Company that he will not be standing for reelection at the annual meeting. As always, we also acknowledge the continuing hard work and dedication of our employees, without whom we would not succeed.

Sincerely,

D. Gordon Strickland

This letter 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 (collectively, "forward-looking statements"). Forward-looking statements reflect our current views regarding the Company's operations, plans and strategies, and such statements are subject to various risks and uncertainties. Important factors that could cause actual results to differ materially from those currently anticipated are described under "Risk Factors" and/or in cautionary statement contained in the Company's 2006 Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for fiscal 2006 filed with the SEC. In assessing forward-looking statements, readers are urged to consider carefully these risk factors and cautionary statements. Forward-looking statements speak only as of the date of this letter, and the Company disclaims any obligations to update such statements.