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lemorex Equipment ProductsDemonstrate Effectiveness InVarious Customer Applications

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New Financial Arrangement To Allow Memorex'sContinuation As A Viable Independent Organization

Memorex has renegotiated its senior debtobligations and arranged for additionalcredit that will allow it to continue its

operations as an independent, competitivecompany.

The new agreements are necessary becausethe company is short of cash for scheduleddebt repayment purposes.

Basic to the agreements between Memorexand its senior creditors is the company'srevised operating and financing plan whichsets new goals and operating conditionsfor the organization. The highlights of thenew plan are:

1. Action Memorex has already taken to

reduce its work force is sufficient to

meet the objectives of the new operating plan.

2. Memorex expects its operating cashinflow to be greater than its cash outflowbeginning in October and to maintain thisfavorable balance.

3. Principal repayments to Bank ofAmerica, Memorex's chief creditor, and

ILC Peripherals Leasing Corp., Memo

rex's wholly-owned leasing subsidiaryand another major creditor, are sus

pended for the remainder of this yearand will recommence in 1974.

4. No sale of securities or infusion of

external capital is expected in the

immediate future.

5. No corporate partner or transfer ofcontrol of our business is required.

6. Conditions are favorable for the con

tinued growth of our business.

The company issued a fairly detailed statement to the press on Friday, September 28,which is printed below.

INTERCOMEditor: William D. Bellou

Memorex Corporation has reached basic

agreement with Bank of America and thelenders to ILC Peripherals Leasing Corporation, Memorex's wholly-owned leasing subsidiary, regarding restructuring of debtobligations and providing of additional creditfacilities. Written agreements signed today,September 28, 1973, by these parties coverthe basic elements of the arrangements,but must be superseded by definitiveagreements prior to the end of 1973.

The agreements now executed are effectiveimmediately to rearrange stated maturitiesof debt to the Bank of America and to

provide additional credits through the endof 1973. The new arrangements, which areto be finalized in the definitive agreements

are designed to allow Memorex to carry outa projected operating plan which will continue its operations as a viable, on-goingindependent business.

Memorex expects its operating cash inflowto be greater than its cash outflow beginning in October 1973. The agreementsexecuted today provide the cash needed toreach that point, and the interest paymentdue October 1st on Memorex's 51/4 %

subordinated debentures has been made.

During the balance of 1973, these agreements provide for the suspension of Bankof America principal repayments, thereadvancing of all amounts to be repaidthe ILC creditors, and the deferral of all

cash payments of interest by Memorex

and ILC.

The overall operating and financing planoutlined in these agreements, to be fullyprovided for in the definitive agreementswhich must be signed, calls for principalrepayments to Bank of America and ILCcreditors to begin in 1974. Assuming thatMemorex meets its projected performanceobjectives that will be required by thedefinitive agreements, cash flow remainingafter projected operating expenditures andinvestments will be substantially equal tospecified principal repayments to Bank of

America and ILC lenders through 1976,after which time meeting scheduledmaturities will clearly require financingfrom other sources or a further extension

of debt maturities. Interest is to be accrued

currently and charged against earnings, butpayment of interest to both Bank of Americaand the ILC lenders would be deferred until

the end of 1976.

The plan contemplates manufacture of newequipment for lease by Memorex at an

annual rate of approximately S35 million,an investment program considered adequateto meet the up-grading requirements ofexisting customers and to permit productionof advanced products for new customers.

Planned operations also include a continuing research and development programat approximately the current S8 millionannual rate of expense for the develop

ment of disc file storage, communications

and media products.

Six Months Report Issued

In his report to shareholders, MemorexPresident Laurence Spitters announced thatfor the six months ended June 30, 1973,Memorex and consolidated subsidiaries, in

cluding ILC Peripherals Leasing Corporation,had total revenues of $85,282,000. "The net

loss for the period was $101,383,000, or$23.54 per share, based upon 4,307,048shares outstanding during the period,"said Spitters.

"For the six months of 1972, total revenues

were $69,541,000 and net income was

$334,000 or $0.09 per share on 3,915,000shares outstanding during the period.

Regarding the September 17 decision in theTelex-IBM case, Spitters said, "As I havestated in the past, Memorex has, in myopinion, been the specific target of IBM'spredatory practices, as substantiated byevidence produced in the Telex litigation,and we have under consideration claims

which Memorex has against IBM."

ON THE COVER:

Rolling out a Memorex 3670 Disc StorageSubsystem to be readied for customer shipment is Craig Thomas (I) and Rudy Maldan-ado of the shipping department. Customersare utilizing our equipment products in anumber of diversified and interesting ap

plications. (See story on page 4.)

After New Debt Agreement Plan:Where Do We Go From Here?

Where do we go from here? In one way oranother, employees are asking questionsabout the state of the company, its prospectsfor growth, and about their personal employment situations. The following information should answer most questions aboutthese and other concerns of Memorex people. Additional questions are welcome andshould be directed to INTERCOM, MS 12-33.

Before the final agreements are signed laterthis year, is there a chance that the lendersmay require further work force reductionsor other belt-tightening?

There is no requirement by the lenders ofany work force reduction, and managementplans none. Our lenders very much want usto be a viable and successful organization,for our success will be the source of funds

to repay their loans.

This Summer, as you know from our several announcements-of negotiations withother firms, the Company's future under outside control was considered. Such outside

arrangements were in the end all rejectedby our lenders because Memorex as anindependent company offered the bestchance of recovery for their loans.

The negotiation of the basic agreementsinvolved all of the Company's senior management at one time or another. It was ourjoint position that Memorex had completedthe re-scaling of operations this Summerto a level which was in line with our

financial resources, such that no furtherreductions are required. Our lendersagreed, and used our projections in forming their terms for additional financing. Webelieve that the agreements do provide areasonable basis upon which to demonstrate the resiliency of Memorex, and ourcapability to operate profitably in the future.

Will there be money available for earnedpromotions and salary increases, or willboth be frozen for an indefinite time?

We have no plans for any kind of wagefreeze. Our forward plans do include increased pay and opportunity for deservingemployees under our existing performanceappraisal and salary increase procedures.We recognize the need to compete fortalented employees and we intend to do so.Although the basic agreements require closecontrol of all our spending, we can rewardthe diligence and competence with whichour employees pursue our operating goals.

There is some dissatisfaction about the

Company's benefit program. Will there besome improvement now, or do the loanagreements make that impossible?

The company is concerned about its benefit program and has received considerableinput from employees as a result of theApril Attitude Survey. Negotiations hadmade it impossible to effect any benefit change which required an SECregistration. Now we do have the opportunity to move ahead, and no restraint onbenefits per se is included in the loan agreements. Although many parts of the corporate benefit program are attractive whencompared to other firms in our industry, werecognize the deficencies in other parts.You can expect several specific improvements in benefits over the next few

months, the first of which is expected withina month.

Are we going to continue to manufactureand lease all of our products, or must wecut back in some way?

We regularly review the products offeredby the Company and seek to select thosewith the greatest cash and profit potential.We expect to continue active programs inall major product groups, with extensive review of the individual products within thosegroups as to financial return. The basic loanagreements provide a substantial amount ofcapital for continued investment in our leasebase. It is our job to optimize that investment in 1974 and beyond. The recentlyauthorized manufacturing schedule for 1974includes manufacture of 3670/3671,1242/1280, 1270 and Mark X products forlease and sale. The products normally soldoutright to customers are generally scheduled for increased production in 1974.

Are we going to be able to market ourproducts aggressively? Did we lose manycustomers during the past several months?

The steadfastness of the overwhelmingmajority of our customers, despite ourfinancial problems, is one of the brighteraspects of our business today. The reliability of our equipment and the responsiveness of our field service organization has retained the superior image of Memorex products among users. Our lease and servicerevenues continued to rise in the third

quarter to new record levels, and are currently at an annual rate approaching $100million.

We regret the loss of many productive people over the past few months, yet we believethat those whose have remained can do thejob. We do have the money and manpowerto compete effectively, and we are confident that we have the will to do so. Memorex can be a good place to work if and asMemorex people respond to the challenge.

What effect will the Telex-IBM court decision

have on Memorex's ability to compete inthe peripheral market?

IBM has been found guilty of predatorypricing and marketing practices in violation of the anti-trust laws. Evidence introduced by Telex clearly shows that Memorexwas a specific target of IBM's action. Sinceour claims of competitive injury would besimilar to Telex's, we can assert thoseclaims in litigation against IBM at theappropriate time. Our immediate priority,however, is to expedite recovery of astable operating situation.

One of the most significant effects of theTelex decision is the widespread publicityof IBM's wrongdoing. The general publichas viewed IBM as the "ideal" corporation;this unmasking of IBM's tactics and theconstraint upon IBM competitive actionshould create a new environment for Memo

rex. Our business lies in one of the most

dynamic and fastest growing sectors of theworld economy and we welcome the opportunity of fair competition.

The precise impacts of the court's judgment remain to be defined, pending the outcome of motions and appeals. In any event,our ability to compete has been recognizablyimproved.

Is management confident that we can meetour new goals? If so, why?

We know that Memorex people, products,and services are distinguishably superiorto those of our competitors. We know thatin the past, this combination of talents, plusenthusiastic pursuit of our goals, has enabled us to outdo competition, exceedtargets, and find satisfaction in ouraccomplishments.

Given the opportunity to perform (by ourfinancial agreements) and an improved competitive environment (by the IBM-Telex judgment), we believe that the pride of Memorex people will not permit failure for lack ofeffort. Our 1974 Plan sets reasonable goalsfor a successful company—whether wereach them or not is up to all of us.

From Medical Labs To Conglomerates

Memorex Equipment Products DemonstrateEffectiveness In Various Customer Applications

Although Memorex CommunicationTerminals and 3670 Disc Storage Subsystems are relatively new in the dataprocessing industry, businesses throughoutthe country are using these products in anumber of diversified applications.

"From large conglomerates to small medical laboratories, customers cite price/performance advantages, reliability, andservice as major reasons for purchasingor leasing Memorex equipment for theirinformation system operations," accordingto William F. Emmons, Vice Presidentof Sales.

Some of the more interesting uses thatdemonstrate the adaptability of MemorexCommunication Terminals and 3670 Disc

Storage Subsystems include:

MEMOREX EQUIPMENT CUTS DATA

PROCESSING COSTS OF SAMMONS

ENTERPRISES' COMPANIES

Omnis, the centralized computer arm ofSammons Enterprises—a holding companyfor a variety of businesses—reports thatextensive operational and cost savings aregained from Memorex communication andstorage equipment connected online to its

system 370/145 for three of its largecompanies.

"We depend in part on rental savingsgained from our Memorex peripherals to becompetitive in providing EDP services toSammons' companies," explained MichaelHensel, Director of Data Services for Omnis.

The largest dollar savings accrue from a15 percent rental reduction for eight Memorex 3670 Disc Drives. The drives, soon to

be expanded to a total of 12 with two con

trol units, contain data base master files for

Reserve Life (insurance company), SammonsCommunications Company (cable TV systems) and Briggs Weaver (construction andhardware distributors).

"The excellent uptime record we experienced with Memorex's 3660 Disc Drives,and a parallel run with both the Memorex

3670 and IBM's 3330, made our decision to

standardize with Memorex discs an easyone," said Hensel.

COX BROADCASTING RELIES ON

MEMOREX TERMINALS IN COMPLEX

TIME SHARING NETWORK

A new interactive time sharing network withMemorex 1240 Communication Terminals,

operated by Cox Data Systems, a Divisionof Cox Broadcasting Corporation, is providing a real-time sales and accountingservice to TV and radio stations.

"An information explosion resulting froman increased number of transactions in

volved in generating a dollar of stationrevenue has virtually dictated our developing the real-time system," explained AllanSanders, Business Manager for Cox DataSystems.

The process of a station selling and scheduling spot time involves a complexsequence: controlling a continually changingavailable inventory of spots; selecting specific spots for a special audience; presenting recommended schedules of spots toadvertisers or their agencies; confirmingand protecting spot reservations; detailingdaily station format and logs to assure allnecessary video and audio backup will beavailable when needed and correctly used;plus final detailed invoicing.

"We chose Memorex 1240 Communication

Terminals basically because of the variableoperating speed option and its reliability, which is essential for our timesharing network," said Dan Roberson,Manager for Conversion and Training atCox Data Systems.

YAMAHA REVS UP DATA

COMMUNICATIONS WITH

MEMOREX 1250 TERMINALS

In contrast to the Cox TV and radio spotselling and scheduling system is theaccounting system of Yamaha InternationalCorporation of California, sole distributor ofcycles and other Yamaha products in theUnited States.

The company is using the Memorex 1250Communication Terminals in seven remote

warehouses for printing combined bills oflading and shipping notices. The terminalspermit bills of lading to be printed withinan hour and shipments to be made thesame day.

Supporting extensive data bases for inventory, billing, accounts receivable, orderentry, and general ledger applications is asix-spindle Memorex 3670 Disc StorageSubsystem. "Our decision to use the 3670was based upon a faster average accesstime, a significant price saving, and ourprevious experience with 3660 units," said

Dick O'Donnell, Yamaha's Controller.

"Memorex's reliability, engineering supportand overall systems response has been excellent," he said.

One of the Memorex 1250 online Com

munication Terminals used throughout the

Bobbie Brooks production-distribution systems. Delores Kinney operates the companion CRT display.

BOBBIE BROOKS FASHIONS FLEXIBLE

"TELECONTROL" SYSTEM

WITH MEMOREX 1250's

A different application from that of a motorcycle inventory information system is anapplication of Memorex 1250 Communica

tion Terminals by Bobbie Brooks, one ofthe nation's largest and most diversifiedapparel manufacturers.

Controlling a two million yard fabric in

ventory, cutting more than 13,000 clothingunits weekly for 26 manufacturing facilities,preparing 2,500 invoices daily, and shippinga diverse line of clothing to more than13,000 retailers is a mind-boggling task theBobbie Brooks information system handlesin stride.

The employee interactive terminal systemcalled "telecontrol" includes a total of 15

Memorex 1250 Terminals. It provides immediate hardcopy answers to more than 15,000daily fabric status CRT inquiries at allstages of the production cycle.

David Dailey, Director of Management Information Services at Bobbie Brooks, describes

"telecontrol" as ". . . an ideal system wehad envisioned for years. It has trulyeliminated control problems from the receipt of raw material through final invoicingof our customers."

MEMOREX TERMINALS ENABLE 24-HOUR

MEDICAL LAB TEST TURNAROUND

One of the newest and most novel applications of Memorex 1250 Communication

Terminals is their use by a medical laboratory in Woodland Hills, California, to

supply test results to doctors, clinics, and

hospitals in less than 24 hours after specimen pick up in cities as far away asChicago.

According to Michael J. Stone, DataProcessing Manager of Laboratory Procedures West (Upjohn's Laboratory Division), Memorex terminals are used for

transmission to a user or a laboratory procedures distribution center.

Two of the terminals operating in acompany-owned distribution center servingsubscribers in the greater Chicago area,".. . print approximately 12,000 test results

within two hours during a normal day'stransmission," said Stone.

More than 255 tests are provided rangingfrom common urinalysis and CBC (com

plete blood counts) to more complex Pro

tein Bound Iodine (a thyroid function

measurement) and Renin (hypertension).

"The speed of the Memorex terminals hascut our remote printing time up to a fourthand made our less-than-24-hour-turnaround

possible. Oftentimes we will have resultsback to Chicago, our most remote distribution center, by 9:00 a.m. following aprevious afternoon pick up," said Stone.

These sales and many others are the resultof professional salesmanship of the Memo

rex Field Marketing organization," saidEmmons. "Our growing sales indicate thatour people really know our customers' problems and how to best resolve them with

Memorex equipment."

Reviewing an advertising spot availabilityreport, generated by Cox Data Systems andprinted by a station-based Memorex 1240Communication Terminal, are (left) Dale

Smith, General Sales Manager of WSB-TVin Atlanta and Allan Sanders, Business Man

ager for Cox Data Systems.

One Millionth Memorex ComputerTape Delivered In United Kingdom

The one millionth computer tape to be supplied in the United Kingdom was recentlydelivered to the Southern Computer Centerof Shell-Mex and B. P. Limited at Hemel

Hempstead, Hertfordshire.

The occasion was marked by an informalreception held at the Brown's Hotel, London,when a commemorative plaque waspresented to the computer center byWilliam S. McCalmont, Memorex EuropeanVice President.

McCalmont said the association between

the two companies dates back to 1965,shortly after Memorex started its UK andEuropean operations. "Memorex hasestablished the viability of the independentsupplier, with benefits to the end-user,"

said McCalmont. "However, without the

support of companies such as Shell-Mexand B. P. Limited in the early days, Memorex would not have reached its one

millionth computer reel so soon."

Systems manager Harry Cordwent, whoaccepted the plaque on behalf of the

Southern Computer Center, said thecenter has purchased more than 11,000

computer tapes since 1965. "We have al

ways had a great deal of magnetic tapeactivity, especially during the early beginnings when approximately 1,600 tapeswere mounted each day," said Cordwent."For that reason it was essential that the

supplier was selected with extreme care."

William McCalmont (center), European Vice

President, presents a commemorativeplaque to Systems Manager Harry Cordwent

of Shell-Mex and B. P. Limited, markingthe one millionth Memorex computer tape

delivery to the United Kingdom. Stanley

Day (I), Manager of Shell-Mex InformationComputer Division, also took part in the

presentation.

Memorex Enters End User And OEM DiscCartridge Fields With Two New Products

Memorex has announced that it is now

marketing disc cartridges that are compatible with IBM System/3 computers.

The Memorex Mark III T, a long loadingdisc cartridge for 5440 type drives, is immediately available, and the Mark III F, a front

loading disc cartridge for 2315 type drives,

will be available in October of this year.

What makes the Memorex entry into themarketplace different, according to PhilippeYaconelli, Vice President for Marketing, is

that "Memorex is late getting into thisfield and we're going to make up for it byselling our disc cartridges at an introductoryprice of only $110 each during this periodof time."

"In other words, users can save a sub

stantial amount of money on cartridges if

they promptly place their orders with us,"said Yaconelli. "A similar pricing strategy

will be exercised when the Mark III F be

comes available in October."

In another move, Yaconelli announced that

Memorex is also actively seeking OEMbusiness and will offer an even more at

tractive price for quantity buying manu

facturers who wish to private label Memorex disc cartridges. The disc will meetvirtually any mini-drive requirement and

can be ordered with special sectoring to

meet specific needs. Additionally, the disccartridge is also available in dual densityconfiguration.

Memorex Announces New Toner For IBM Copier II

Memorex is now taking orders for its newhigh quality Cartridge Toner for use in IBMCopier II.

The new toner produces sharper images,is cleaner to handle and more economical

on a cost per copy basis than other available toners, according to Bruce Colegrove,General Manager of Business Products.

"There are three basic reasons why Memorex Cartridge Toner out-performs othertoners," said Colegrove.

"First, Memorex toner is made with a uniquepolymer base with more carbon black fordarker images and better contrast; second,toner particles that are not of optimum sizehave been minimized for cleaner copy

background and sharper print quality.

"And third, Memorex toner is manufacturedin a continuous process, eliminating batch-to-batch variations, under rigid qualitycontrol performance standards."

Meeting or exceeding all IBM specifications,Memorex Cartridge Toner provides morecopies per pound of toner than competingtoners, and offers significant price discountsover IBM.

Memorex Cartridge Toner comes in auniquely packaged cartridge which providescleaner storage and loading, and is closedby an extra wide plastic band which prevents leakage before use.

MEMOREXFor use onW j«

IBM Copier".i>!",'9*..««oi>r",'^L«*>

Herrera Named To Direct Storage DevelopmentThe appointment of Ray Herrera as Directorof Advanced Products in Storage SystemDevelopment was announced by JackClemens, General Manager of StorageSystems.

Herrera, who formerly was manager of discmemory engineering for Honeywell Information Systems, will be responsible foradvanced future programs for Memorex discdrive developments in his new position.

Prior to Honeywell, Herrera was vice president of engineering for IOMEC, Inc.

Before that, he spent 13 years with IBM ina number of managerial positions, includingmanager of file development for directaccess storage products, manager of themagnetic recording technology group for

random access files, and advisory engineer,special file programs.

Bridge To Head Communications DevelopmentWilliam H. Bridge has been appointedGeneral Manager of Communications Development, announced Douglas Larson,Vice President of Equipment Products Operations.

Bridge, who recently served as a consultant to Memorex, will be responsible forbringing new communications productsto market.

For four years, beginning in 1968, he waspresident of TENET, Inc., of Sunnyvale,principally a manufacturer of computer

mainframes.

From 1964 to 1968 Bridge was vice president-engineering, Data Pathing, Inc., wherehe formed and directed the organizationthat produced a unique data collectionsystem for large manufacturing plants.Prior to that, Bridge was engineering manager in General Electric's Computer Department where he headed the development of the DATANET 30 communica

tions processor.

A graduate of Catholic University,Washington, D.C., with a degree in electrical engineering, cum laude, Bridge hasdone advance studies in physics andmathematics.

Campbell Helps Put It All Together

Long Negotiations On New AgreementReconciles Interests Of Diverse Parties

Memorex's agreement on debt repayment

was the hard-earned culmination of fre

quent, lengthy negotiations. Don M. Campbell, Company Treasurer, bore the brunt ofthis necessary burden during the nearlyfour weeks of negotiations here and inNew York City.

More often than not, Campbell was thelonely Memorex Man-on-the-Spot, trying toclose a deal with a diverse group ofcreditors on the basis that the best interest

of the borrower was also the best interestof the lender.

"We went into these negotiations with threeproblems: (1) the company had a lot ofdebt, (2) the company had interest andprincipal payments due over the next twoyears that it couldn't realistically meet, and(3) the creditors weren't sure what to doabout the first two problems," said Campbell. "That uncertainty by some of thecreditors was the reason for that long pe-

Special Products Group FormedTo Handle OEM Media MarketingA Special Projects Group to service thecomputer media requirements of originalequipment manufacturers exclusively hasbeen formed by Memorex.

The group will fill a great need for a majormedia supplier like Memorex to have a fastresponse and dedicated organization,separate from regular engineering andmanufacturing functions, to interface withOEMs, according to Philippe Yaconelli,Vice President-Marketing.

"This free-form group will be able to dealexpeditiously with OEM organizations, andat the same time, not disrupt the normalmanufacturing and engineering routines ofthe company," said Yaconelli.

During its first few months the SpecialProducts Group will concentrate in the areaof special discs, disc packs and disc cartridges. The team is now positioned toevaluate OEM proposals, provide engineering interface and cost/price estimatingalong with limited quantity production.

riod in which there were attempts to sell

the company or otherwise raise money ina hurry."

"Once that third problem was resolved onthe basis of agreement that there was a wayto operate Memorex as an independentcompany and meet the needs of thecreditors, the shareholders, the employeesand the customers, we were able to begin

serious negotiations on the other two," explained Campbell. "And while our largedebt hasn't gone away, the repaymentshave been set up in a way that give us areasonable program to pay it down whilemaintaining and growing our business,"he added.

"If it seemed to you that it took a long timeto conclude those agreements, it seemed alot longer to me and those at Memorexwho so capably supported the effort. Butwe had fourteen lenders to deal with—

banks, insurance, and credit companies—and there was just no easy way to reconcile all of their and our legitimate interestsin so large and complex an arrangement,"stated Campbell.

"Perhaps it's easier to understand thenecessary care that went into the agreements by noting that as soon as all thesignatures were on the documents, $7million in cash was handed over to the

company," he explained.

"I'd have greatly preferred it if we couldhave finished up a lot earlier than late atnight on Friday, September 28, but whatcounts are the results."

"I think we defined an excellent basis under

which to pay our legitimate obligations andto compete effectively in our marketplaces," Campbell said. "All our creditorslined up behind us to give us this opportunity, and I'm personally very grateful tothem for the good faith and the good judgment to support all Memorex's employees."

In announcing formation of the group,Yaconelli also designated Vern Goode asmanager of the new unit. Goode has morethan five years experience in working withOEMs, and has been directly involved in

helping create many new disc products.

Other members of the Special ProductsGroup include Hal Sowle, Product Manager;Don Ivie, Marketing; Paul Herbig, Engineering; and Steve Johnson, Researchand Analysis.

Terminal System Connects 52 Memorex Sales AndService Offices-Provides Significant Cost Savings

A recently installed Memorex 1280 Communication Terminal System connecting 52Memorex sales and service offices with

headquarters is providing significant costsavings and improved communicationsefficiency over a previously installed Western Union TWX Network.

"The terminal system provides numerousbenefits over the TWX Network," accordingto Mary Shine, Senior Systems Analyst,"such as the elimination of dialing for

International Operations also utilize the 1280Telecommunications System. Pat Simons (I)

Telecommunications Coordinator, transmits

International administrative messages whileLinda Cavazos, Telecommunications Clerk

receives Media sales orders from the

Memorex branch office in Toronto, Canada.

message traffic and its unattended opera

tion for receiving and sending messages.The terminals also allow for faster message

preparation, easier editing, and an annualsavings of approximately $30,000," saidMs. Shine.

More than 750 messages are sent daily,which include daily activity reports (DAR),financial information and spare part re

quests for equipment products. In addition,International Operations receive and send

information regarding new equipment andmedia order requests.

According to Ms. Shine, the 1280 systemcaused few problems in its initial installation. "However, the ultimate success of thesystem depends, in part, on each keyoperator. Their cooperation and support isessential," she said.

A continuing education program course onthe operation of Memorex terminals is nowbeing developed for key operators who usethe new terminal system. The course isunique in that instructions will be providedon a pre-recorded Memorex audio cassette,while the terminal displays examples of its

print-out capabilities and operation via a

Memorex 1280 Terminal Cassette.

Daily Activity Reports (DAR) are received inSanta Clara by Chris Sebens, Accounting

Clerk. All branch offices report daily toSanta Clara Finance and Marketing groups.

Education and Technical support for theMemorex 1280 Telecommunication Network

are provided by Mary Shine, Senior Sys

tem Analyst.

""v

Warren Davidson, Consultant Analyst, teststhe Memorex 1280 Communications Network

with the Memorex International Office in

London. The nucleus of the telecommunica

tions system is housed in the unit directlyto the right of Davidson.

Promotions

James Agur to Department Manager-ManufacturingRoland Bishop to Equipment ManufacturingSupervisor

Dixie Blanchard to Credit CorrespondentHarold Bliss to Media Technical SpecialistSteven Boyd to Department Tech-TechnicalManufacturingRonald Brown to Equipment ManufacturingSupervisor

Ronald Bulin to Marketing RepresentativeJanice Bunker to Sales RepresentativeNorma Burchfiel to Executive SecretaryJanis Carpenter to Supervisor EquipmentManufacturingJulio Cervantes to Electro Mechanical Tech

Alton Christman to Department Manager-ManufacturingRobert Contreras to Product Control AnalystGeorge Cotroneio to National Sales

Manager-Business ProductsJohn Crescenzo to Senior Associate Field

Support RepresentativeJohn Dick to Senior Mechanical Tech

Angelina Dutra to Statistical Clerk

Doug Eldridge to Sales RepresentativeJennie Eleazarraraz to Associate Accountant

Leonard Emerson to Equipment OrderAdministrator

Robert Fernandez to Purchasing DepartmentManagerDavid Fukagawa to Material PlannerKnowlton Harrell to Professional Product

Salesman

Robert Hayes to Director-Field SupportSharon Henry to Associate Accountant

Robert Higgins to Manager of Planning andControl-Equipment Operations

Richard Hoehnle to Manager Technical IIL. Wayne Johnson to Technical ManagerWayne Kennedy to Senior Associate FieldSupport Representative

Janice Kirkland to Order Correspondent

Gyula Kish to Field Support ManagerJames La Plante to Electro Mechanical B

G. (Kenneth) Lowe to Manager Manufacturing Quality Control

Barbara Mae to Assistant Media Order

Administrator

Ronald Martin to Department Manager-IT ManufacturingKenneth Masco to Territory SupervisorPhilip Mastrocola to Associate BuyerEmanuel McCown to Senior Associate

Field Support Representative

Curtis McCrary to Territory SupervisorDavid Meyer to Branch Sales ManagerNewton Montgomery to Director-Field

Support

Tim Morrison to National Accounts ManagerFarrokh Mottahedin to Senior Engineer

10

Christopher Newton to Territory SupervisorRichard Niehaus to Senior Field SupportRepresentative

Terrence O'Donnell to Sales RepresentativeRobert Okano to Traffic Coordinator

Lane Park to Territory SupervisorFred Phillips to Engineering Manufacturing INorman Phillips to Engineering SpecialistRuth Rease to Electro Mechanical Tech

Phyllis Ring to Credit CorrespondentEverett Rogers to Engineering SpecialistPete Ruth to Engineering Quality ControlRichard Schulenberg to WarehouseSupervisor

\Gary Chang, Ferrite Assembler for 3670

Disc Drive Heads, does some flag waving

and cake cutting during a reception inhonor of receiving his U.S. citizenshipAugust 11. Chang was born in Shanghai,China and attended school there and in

Shanghai, Soochow, Kiangsu, and Kowloon,

Honk Kong. He held a number of different

Robert Smith to Senior Systems ProgrammerWilliam Spitznagle to Branch Sales ManagerStephen Stephens to Supervisor EquipmentManufacturingJeanette Stewart to Accounting SpecialistLawrence Swick to Senior Associate

I Field SupportCraig Thomas to Supervisor RepresentativeEquipment ManufacturingCharles Tillett to Field SupportRepresentative

John Weston to Department Manager-Quality ControlMichael Wolf to Associate Buyer

positions, including a business representa

tive for the Hong Kong and Shanghai Banking Corporation, an operations representative for Pan American World Airways, and

as a foreman for the Jardine Engineering

Corporation and the Hong Kong GovernmentBusiness Registration Office of Commerce

and Industry. He joined Memorex in 1970.

President Reports On Memorex'sFirst Employee Attitude Survey

In April of this year, 3,000 Memorex employees participated in our first attitudesurvey. It was an opportunity to learn whata majority of employees wanted to tell usabout Memorex.

By way of background, employees wereasked to respond to a series of statementsabout some important aspects of theirexperiences in the Company. For example,one such statement was, "My immediatesupervisor treats everyone fairly." The employee was asked to indicate his anonymousreaction to the statement. Did he agree,

disagree or was he undecided? The employee was also asked if he thought thestatement was important, unimportant orneither.

The overall response to the statement tellsus what employees wanted us to know abouttheir reaction to the statement. In addition,

employees were encouraged to writeanonymous comments on the survey forms,regardless of whether or not such comments were related to the survey statements.

We have now thoroughly reviewed theattitudes apparent from the survey resultsand have deliberated how management can

be most responsive to what we have learned.We can make no simple summary of survey

inputs which would be meaningful to allparts of our organization.

There are so many differences in the inputsfrom one organization to another that anyattempt to make an overall summarizationwould be grossly misleading by itself.Therefore, I have asked the Vice Presidents

and General Managers to immediatelyinitiate review of the survey's findings fortheir organizations and to define actionplans to correct problems of major concern.

We have learned that some ideas about

their employment circumstances wereshared by many employees back in April.These generalized attitudes were:

1. That employees felt the need formore information about management

decisions that affect the overall plans

and direction of the Company.

2. That employees were not pleasedwith the food and beverage serviceat Memorex.

3. That employees liked their immediatesupervisors, felt good about their

work, and were proud to work forMemorex.

4. That employees were personallyenthusiastic about their work but felt

other employees were not.

5. That employees wanted more attentionpaid to improvement of pay and benefits plans.

I can assure you that we intend to doeverything possible to improve the employment environment which produces attitudesof dissatisfaction. At the same time we

should acknowledge that some employeeattitudes reflect stress and problems at thetime of the survey which are not continuingtoday. For example, our survey inputswere taken in April, prior to the May improvement in pay plans, and immediatelyfollowing a major reorganization.

It is undoubtedly true that some attitudeshave changed since the survey, bothfavorably and unfavorably. I am aware thatmuch dissatisfaction persists among employees which should and can be alleviated.For that reason, I have asked the Vice

Presidents and General Managers to institutecorrective action regarding specific problems on a divisional and departmental basis.For corporate-level items, I have instructedthe Corporate Operating Committee, thePersonnel Department, the Public RelationsDirector and other senior managers to give

attention to improving those aspects ofMemorex's environment which employees

wish to have improved, including communications, food service, and financial

incentives, to the extent that our financial

condition permits.

As most of you are probably aware, we arenow completing major improvements to thefood service, including installation of a hotfood line in the Tape Plant Cafeteria,which are intended to be responsive to thedissatisfaction expressed about food servicein the survey.

We will communicate to you our decisionsand action programs for other corporate-level items as they are resolved. ThePersonnel Department is charged with coordinating resolution of these concernswithin the next few months, so that no issues

remain unanswered by year-end 1973.

This first survey represents a successfulbeginning for us because it has enabled usto establish a basis from which to measure

future changes and progress in reachingour goals. Your conscientious replies andpatience are indeed appreciated.

Thank you,

^&Ujlaacljcc A.^j/Ul/*A<*-

News In Brief

August Disc Drive SalesHighest Since January

Memorex 3660 Disc Drive Sales for Augusthave exceeded monthly sales since Januaryof this year, according to James Allen,Product Sales Manager. "We attribute theincreased sales to continued customer satis

faction with the price-performance capabilities of the drives," said Allen.

Media ManufacturingReorganization Announced

With the resignation of Richard Bourgerie,Vice President of Media Operations, B. B.Patel will assume responsibility for all TapeMedia Operations, announced J. GarrettFitzgibbons, Vice President and GeneralManager of Media Products. Don Racine,Manager of Video Tape Q/A, and MartyJenkins, Manager of Computer Tape Q/A,will report to Patel. Steve Stone, MediaOperations Planning Manager, will report toPaul Nappe, Director of Operations andPlanning for Media Products. Don Mattson,Director of Disc Pack Operations will report directly to Fitzgibbons.

Memorex Computer TapesCompatible With HigherDensity 6250 BPI Drives

Memorex customers have been notified that

computer tapes—including those now incustomer use—have the capability to function in 6250 bpi tape drive operations. IBMrecently announced it will upgrade its drivesto that higher density.

Memorex tapes conform to IBM specifications and will perform on 6250 bpi systemsas well as they do on 1600 bpi systems.

Ferenz Named Director—

Storage And Controllers

James Ferenz has been named Director of

Storage and Controllers, Manufacturing.Ferenz replaces Neil W. Jacobs who hasassumed the position of Director conformation Systems. Ferenz has held the position of manager of assembly in EquipmentManufacturing for the past 18 months.

12

Consumer Products Donates

Cassettes To St. Vincent

De Paul Center In Chicago

A donation of 12 MRX, Oxide Cassettes tothe St. Vincent De Paul Center in Chicagowas made by Consumer Products Central-Western Regional Manager George Travers.While driving to work, Travers heard SisterAnthony of St. Vincent De Paul (a gueston a popular radio talk show) explain thatshe wanted to record short stories and

current events for senior citizens who are

unable to read. A few minutes later, arepresentative from General Electric calledand donated a cassette recorder to Sister

Anthony. As soon as Travers arrived at theoffice, he called show host Wally Phillipson the air, donated 12 cassettes and discussed Memorex's advertising campaign,"Reproduction So True It Can ShatterGlass."

James Porter AppointedDirector of CMX Marketing

James N. Porter has been appointed Director of Marketing for CMX Systems, ajoint Memorex/CBS company that makesand markets computer-controlled video tapeediting systems. Porter had been withMemorex from 1968 to 1971 as manager ofcomputer media product management. Hismost recent position was director of marketplanning for Cartridge Television, Inc., ofSan Jose, California. He also served asdivisional advertising manager for CrownZellerbach and marketing manager for thePabco Paint division of Fibreboard

Corporation.

Lowe Named Manager—Equipment ProductsHead Manufacturing

G. Kenneth Lowe has been named Managerof Head Manufacturing for Memorex equipment products. Lowe replaces Joe Limawho has accepted a position with an electronics firm in Ireland. Lowe, who hasmore than fifteen years experience in electronic manufacturing, joined Memorex in1970. His most recent position was Manager of Final Test.

Largest Monthly VolumeOf New Orders For 1270

Terminal Control Unit

August produced the largest monthlyvolume of new orders for the Memorex 1270

Terminal Control Unit since it was first

introduced in 1971, according to WilliamBridge, General Manager of Communications Development. One customer alone,a computer timesharing company, hasordered eight 1270s, which now gives ita total of 22. "The efforts of both Development Engineering and Manufacturing inproviding new 1270 features, coupled withstrong marketing programs, has resulted inthe product continuing as a strong competitor in the communications market,"said Bridge.

Flexible Disc Media Shifted

From Equip. Products GroupTo Information Media GroupResponsibility for Flexible Disc FDIV andFDV media is being transferred fromEquipment Products to the InformationMedia Group. The FDIV Cartridge is currently being used in the Memorex 651Flexible Disc File, and the FDV Cartridge(equivalent to the IBM Diskette) will beused with the new Memorex 652 Flexible

Disc File scheduled for customer deliveryearly next year.

Bill Randolph To ManageMemorex Systems Programs

William Randolph has been appointed tomanage Memorex Systems Programs, announced John Kramer, VP and General

Manager of Equipment Marketing. Randolphhas been director of operations of MemorexEurope at Liege for the past year.

Education Dept. DevelopingTelecommunications Course

A complete telecommunications course isbeing developed by the Education Department to assist in field training for currentproducts. The course will be ready fordistribution later this month, according toBob Hayes, Manager of Education andSupport Services. It will include lesson andlab guides, and also student handouts.

Memorex United Fund Campaign Underway

"Thanks To You It's Working," is this year'stheme of the Santa Clara United Fund

Campaign, and for those Memorex employees who contributed last year, thismessage holds a special meaning.

"More than 100 agencies have been ableto continue serving the human care needsof local residents in 12 communities thanks

in part to the contributions of Memorex

employees," said Linda Carlon, MemorexUnited Fund Chairman.

One out of every four people in the SantaClara County receive direct services fromUnited Fund Programs. Communities servedby the Santa Clara County Campaign include: Campbell, Cupertino, Monte Vista,

Milpitas, San Jose, Santa Clara, Saratoga,Gilroy, Morgan Hill, Los Altos, Los AltosHills, Palo Alto, Stanford, and Sunnyvale.

Mrs. Carlon said that giving to the UnitedFund enables individuals to contribute onlyonce for more than 100 separate services,avoiding duplication of effort and theannoyance of many campaigns. "It alsoenables contributors to use their money toward a well-balanced program of servicesin the community," she said. "When youcontribute to the United Fund everyonebenefits from a healthy community whereagencies are serving their health, socialwelfare and recreational needs."

John Pew, Director of Personnel, said "Employee volunteers will be contacting allemployees in an effort to obtain as manygenerous pledges as possible. Our goal is100% employee participation."

¥.¥TOGETHER WE LI-

KEEP IT WORKING

Linda Carlon, United Fund Campaign Chairman (second from left) holds a UF "Fair

Share" pledge card from Chaney Sabharwal

(right), while Nancy Barry pledges her "FairShare" to UF Campaign Coordinator

Julian Camacho.

Dear Employees of Memorex:One of the most worthwhile fund raising campaigns conducted in Santa Clara County, andthe only one we at Memorex support, is our local United Fund campaign. Over 100 agenciesand services of United Fund are seeking our support so that they can continue to providethe self-help programs which are vitally important to our many Santa Clara communities.

I firmly believe that United Fund services do much to help people. Here are a fewreasons why:

. . . United Fund agencies help people who want to be helped and who workhard to help themselves

. . . local volunteers from all walks of life govern the agencies and United Fundso that your contributions are used equitably

. . . campaign costs are low, allowing 920 of every dollar raised to beallocated towards helping people.

Our United Fund campaign is scheduled to be conducted during the week of October 15,1973. During the campaign one of your fellow employees will ask you to sign a pledge.Our goal, as a company, is to have all Memorex employees contribute their fair share;of course, only you can decide the amount of your contribution. We have established apayroll deduction program by which you can have an amount deducted each pay periodover the next year.

Sincerely,

tT^LU^eu^t A. J^xJLUa^-

Laurence L. SpittersPresident

13

'Individual Rider Supreme' In Trials Riding

Of all the forms available to the motor

cyclist—road racing, scrambles, endurance,etc.—only in trials is the individual ridersupreme, according to Don Pedrazzi, Memorex Quality Engineer and trials enthusiast.

Pedrazzi, a member of the Pacific Trials

Society headquartered in Redwood City,Calif., has been associated with the sport

for more than three years. "I was introduced to trials through a few of my friends,"said Pedrazzi. "I found the sport very

appealing because rider skill is the determining factor of who will win."

"The exciting aspect about trials is that itrequires a total commitment from the rider,"he said. "The trials rider must be preparedto ride his or her cycle though a 10-25 milecourse, which may include a sharp verticalclimb, a river bed covered with large rocks,or a sheer drop down a cliff."

The trials course usually contains 15 to 25observed sections, which are marshalled bytrial club members who record each rider's

performance. Point penalties are scoredagainst the rider for stopping, leavingsection boundaries, or using his feet. Ridinga section without penalties is called riding"clean."

Don Pedrazzi rides through a rocky river

bed during a trials practice session.

Pedrazzi said the financial rewards of trials

are not as great as those of scrambling or

road-racing, but "the rewards of accomplishment and self-gratification can berealized by all participants."

Lola ReinschNamed MissTall Cleveland

MISS TALL CLEVELAND—Lola Reinsch,

Memorex Business Products Sales Repre

sentative, has been named winner of theMiss Tall Cleveland contest sponsored by

the Skyscraper Club of Cleveland—an organization for taller-than-average persons.Miss Reinsch stands 5 feet 11 inches tall.

Memorex Japan Celebrates Fifth Anniversary

Memorex Japan personnel celebrated theCompany's fifth anniversary at ceremoniesheld August 18 in Tokyo. Memorex Japanwas originally formed to sell and serviceMemorex media products to Japanese markets, but now sells and services Memorexequipment products as well.

Mike Mouri, President and RepresentativeDirector, addressed employees on the fifthanniversary of the founding of the company, its present operations and the successof the business in the future. Mouri com

mended the continued support of all personnel and especially those employees whohave served the company for five years.

During the celebration, T. Yamada, GeneralManager of Marketing, was named ExecutiveDirector of the Company, and four newdirectors were also named as follows:

H. Ocada, Manager-Media Group; N. Koike,Manager of Finance and Administration;S. Terada, Manager of Osaka Branch Office;and K. Hagiya, Technical Manager.

History

Memorex Japan, Ltd. was officially approvedby the Japanese Government as a jointventure between Memorex and Kanematsu-

Gosho, a large Japanese trading company,

on August 15, 1968.

In 1970, Memorex Japan became a wholly-owned subsidiary, and began handlingMemorex equipment products.

Today, there are approximately 125 em

ployees located in Tokyo and in four majormetropolitan areas outside the city.

'"•-

T. Yamada, Executive Director of Memo

rex Japan.

Marking their fifth anniversary with Memorex Japan are (I to r) front row: S. Terada,T. Yamada, Mike Mouri, and H. Ocada.

Back row; K. Azuma, I. Itoh, S. Nakamura,

K. Itoh, and K. Honda.

Mike K. Mouri, Memorex Japan Presidentand Representative Director, addresses employees on the fifth anniversary of thefounding of Memorex Japan.

Mike Mouri presents a toast to employees

and to the future of the Company.

15

INTERCOMMEMOREX CORPORATION

SAN TOMAS AT CENTRAL EXPRESSWAY

SANTA CLARA, CA 95052

First Class Mail

Memorex Employees Celebrate Anniversaries

Fifth AnniversaryThe following employees have markedtheir fifth anniversary with Memorex.These employees will receive five year pensin recognition of their contributions to thecompany.

Earl BaileyRoland Bishop

Marian L. Bohman

Corinne E. Brown

Otelia Brown

Ronald E. Brown

David Bunch

Gail R. Burris

Mary M. BurtonWilliam Castor

Lloyd L. ClarkGary D. Cole

Patricia F. Cowman

John E. Cox

Palma DorseyAlfred W. Endter

Eleanor R. Ford

Thomas Gardner

Gloria S. Goray

Reason Guilbeaux

Jean M. Gare

James Herman

Alfonso P. Jaramillo

Leilani Johnson

Sally A. JohnsonWilliam Justus, Jr.

Anna KellyDonald H. Lueders

Eleanor L. McCoyAlbert L. Martorana

Stephen L. NemethOscar Perez

Robert G. Saxer

Morris L. Shaver

Kenneth C. Stowell

James G. Stratton

Lanora Tuttle

Michalene Wojtaszek

Tenth Anniversary

Ray lida, Technical Analyzer, was honoredwith an engraved clock marking his 10thanniversary with Memorex at ceremonies

held at the Consumer Products Plant. Neal

Rayborn (I), Manager of Quality Control, andArt Fonda (r), Director of CPD Operations,expressed their appreciation for lida's contributions to the company, lida joinedMemorex August 12, 1963.

Ali Jackson, Consumer Products AssemblyOperator, was honored with an engravedclock marking her 10th anniversary withMemorex. Art Fonda (r), Director of Con

sumer Products Operations, and Ron Grind-staff, Consumer Products ManufacturingManager, made the presentation in recognition of Mrs. Jackson's contributions to the

Company. She joined Memorex on September 17, 1963.

Comdata Holds Annual Picnic

Comdata's Annual MAG sponsored Picnic,held this year at the "Flying B Ranch" inSanta Ana, California, was a "smashingsuccess," according to Don Wilson, Per

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sonnel Manager. More than 240 attendedthe festivities which included volleyball,horseshoe contests, swimming, and dancing.