Video Display Corporation Calls Special Meeting of Shareholders
Thursday March 31, 4:04 pm ET

 

ATLANTA--(BUSINESS WIRE)--March 31, 2005--Video Display Corporation (NASDAQ:VIDE - News) today announced that the Board of Directors has called a Special Meeting of Shareholders of the Company to be held on May 2, 2005. Shareholders of record as of March 31, 2005 are authorized to vote on a proposal which amends and restates the Articles of Incorporation of the Company to increase the number of authorized shares of Common Stock and Preferred Stock of the Company. Shareholders will also be authorized to vote on a proposal to update the Company's existing indemnification of Company directors and officers in certain circumstances to enhance the Company's ability to secure D & O liability insurance at a reasonable cost.

The Company currently is authorized to issue 10,000,000 shares of Common Stock (9,722,088 outstanding) and 2,000,000 shares of Preferred Stock (none outstanding). The Board of Directors has voted, subject to Shareholder approval, to increase the number of shares of capital stock the Company has authorized to issue to 50,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock.

Company CEO, Ron Ordway, stated, "Due to the issuance of shares in the 2 for 1 split of the Company's common stock in November 2004, we are currently near our limit of available shares. Therefore, the Company is restricted from additional splits, stock dividends, option issuance or from using common stock in any merger or acquisition transactions without passage of the proposed increase. The Company has no specific requirement currently for use of the additional shares; however, the Company does have an active acquisition program which could require the issuance of shares if one or more acquisitions being considered were to be consummated."

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 10 display design and manufacturing plants plus eight sales facilities throughout the United States and Europe.


Contact:

     Video Display Corporation
     Ronald D. Ordway, 770/938-2080