AMPX Ampex Corp Class A (MM)

Dutton Associates updates its coverage of Ampex Corporation (Nasdaq:AMPX) maintaining a Strong Buy rating and its 12 month price target of $35. The 15-page report by Dutton senior analyst Richard W. West, CFA is available at www.jmdutton.com, and from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. Ampex has received over $132.0 million in royalties from the beginning of 2001 through September 30, 2006. Ampex continues to negotiate with the 12 licensees who originally licensed the Ampex�s U.S. Patent�121, since after April 11, 2006. These licensees will be required to pay running royalties based on a percentage of the selling price of products sold that incorporate technology covered by Ampex patents other than the �121 Patent. Ampex�s other patents relating to the enhancement of data compression are used in a variety of digital products, including digital still cameras, camcorders, DVD recorders, and camera phones. A SEC form 13D on was filed on November 13, 2006, on behalf of ValueVest Management initially covering 318,768 shares or 8.3% of Ampex common Class A shares. On December 1, 2006, ValueVest increased purchases of Ampex stock, bringing the total number of shares owned to 841,436 or 8.9%. The December 1, 2006, 13D amendment detailed a meeting held with management of Ampex, where ValueVest�s management indicated that it has identified specific actions and possible strategic relationships that could materially increase Ampex�s revenue stream from its intellectual property assets. Ampex agreed to discuss these matters with its Board of Directors and is prepared to work with ValueVest on exploring a new strategic plan for Ampex along the lines outlined by ValueVest. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 analysts, primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its institutional-quality research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $63,000 from the Company for 7 Research Reports with coverage commencing on 10/12/2004. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing. For more information on this release, or on enrolling a company for research coverage, please contact John Dutton at 916-941-8119.