In addition to recording products, the Ampex pioneering efforts in the recorded music field have resulted in the creation of one of the most rapidly expanding segments of the company's business, the Ampex Stereo Tapes prerecorded tape dupli­cation and distribution activity. Since Ampex gave birth to the four-track stereo tape concept in 1959, recorded tapes have captured an increasing por­tion of the music market. By 1972, it is estimated, that taped music will claim 35 to 40 percent of the dollars spent in the U.S. for recorded music. The success of Ampex Stereo Tapes prompted the company to enter the recorded disc business with the establishment of the Ampex Record Company in 1969. The combination of disc and tape produc­tion and distribution will allow the company to de­velop and present its own artists on the Ampex label securing the company's position in this dy­namic field, both here and abroad.

One of the world's most dynamic businesses is the computer industry - its fastest growing part the so-called peripherals field - those parts of the com­puter, that surround and relate to the central proc­essor. The Computer Products Division is steadily expanding its role as the leading independent sup­plier of such peripherals as tape drives, core mem­ories and memory components to the computer manufacturer or data processing system developer.

Tape drives for this market now range from small moderate performance devices for the growing number of small systems now available to high per­formance transports for the most sophisticated system. In addition to traditional sales to computer manufacturers and systems developers, Ampex has begun marketing plug-compatible drives, that may be purchased by the end-user and used with his IBM or other computer system, usually with significant savings.

Developments of Ampex core memory products include some of the largest and fastest available in 'the industry plus a full line ranging downward to small memories for special applications. In addi­tion, basic cores are sold in large quantities as well as arrays and stacks of wired cores. Plans are well along for the introduction of still other peripheral devices to serve this dynamic market. The Terabit Memory System recently de­veloped by Ampex for use with computers com­bines the company's video and computer tech­nologies in a product capable of more than 1000 times the storage capacity of predecessor memory systems. The Videofile System approach to the burgeon­ing paper explosion in business and government is gaining increasing acceptance in diverse mar­kets. The first Ampex Videofile system has been in operation more than a year, automating the han­dling of important railroad freight waybills. System reliability and operational efficiencies have been outstanding during this period.

Various other Videofile systems are on order for delivery in the months ahead. Users include insur­ance companies, government agencies and law enforcement organizations. The largest single or­der in Ampex history was received last year from the Los Angeles County for a system to store and handle law enforcement records, including finger­prints, photographs and related records. The $5.6 million system is due for installation beginning in 1970 and will include filing and retrieval stations at 15 locations throughout Los Angeles county that will be conversant with central files at Sheriff's De­partment headquarters.

A second law enforcement records system order has been received from the Royal Canadian Mount­ed Police, and others are in the proposal stage. Built on Ampex achievements in video recording and third generation computer technology, the Videofile system is a unique answer to an increas­ingly vexing problem. It will play an important role in Ampex growth plans.

Ampex made its first giant step into educational technology with the introduction of the first low priced videotape recorder for closed circuit use in 1963. The market for this new recorder was found primarily in schools, colleges, and industrial and scientific training centers.