Video Display Corporation Excerpts of CEO Address Annual Shareholder Meeting August 24, 2007

It’s good to see all of our old and new friends, shareholders, employees and professional partners here again this year. We welcome all of you. This is the 23rd annual meeting of the shareholders since the company went public back in January of 1985. It is VDC’s 33rd year of existence as a specialty display company. Although this has been an exceptionally good year for VDC as a whole, it has been a challenging year as well. We have seen numerous changes in the ranks of VDC’s senior staff. For the first year in 10 years, we no longer have the input of Mr. David Mutchler, president of VDC Display Systems and also that of Mr. Manny DeArmas. In those 2 passings, we lost 2 of the reasons we all enjoyed coming to work every day. Delen Boyd, our former CFO, is also no longer part of the organization, having taken on a new challenge in his home state of Alabama. Erv Kuczogi, who is present today, has stepped down as president of the corporation while retaining his position as a member of VDC’s board of directors. Mr. Mutchler’s role as president of VDC Display Systems has been filled by Marcial Vidal, an original founder of the VDC Display Systems and director of operations and engineering under Dave Mutchler at our Florida operations. Mr. Kuczogi’s position of corporate president has been filled by David Heiden, who was previously executive vice president at the corporate level. Dave has spent the last 8 years familiarizing himself with all of the corporate divisions, their businesses, their people and their customer relationships. As my right hand, he fulfilled the role, in many cases, of handling most of the responsibilities that he now has official control over. Mr. Boyd’s position of chief financial officer has been well filled by the addition of Gregory Osborn, along with additional staff, to strengthen our data collection and reporting procedures. However, we can never have too many contributing people on board; and I personally believe that the company today is in the best shape, personnel wise, that we have ever been to handle the new and ever-changing business of Video Display with Dave Heiden, Marcial Vidal, Greg Osborn, Mike Allen at Z-AXIS, Brad Fox at Fox Int’l, Bill Frohoff at Lexel, Art Mengel at Aydin, and their staffs. With this team, the average age of management is getting ever younger. In looking back to last year’s annual address, we reported four consecutive quarters of lower comparisons in quarterly results. However, as said previously, this year was significantly better and, in fact, was an exceptionally good year financially at VDC. Although we did not achieve record revenues for the first time in 11 years; A - Gross margins on revenues expanded from 29% to nearly 34%. B - We absorbed $600m in higher interest costs vs. the prior year. C - We absorbed higher federal income tax rates. D - We absorbed acquisition costs, numerous higher legal, auditing and other unanticipated administrative costs. And yet, in the final analysis, the company still reported after-tax net income and per share results nearly four times greater than that of the previous year. E - We put in place a totally new and comprehensive refinancing package with RBC Centura and Regions Bank. F - We went through a strenuous program of replacing our 401k pension management team and changed out the health insurance program and provider for all of our employees. G - We purchased nearly $1,000,000 of common stock from the open market with the approval of our lenders. That program has been extended into this fiscal year as well. H- The company made 3 acquisitions during the year. Nothing earth-shattering, but each one with its own set of problems that needed to be resolved in order to move forward. All in all, overcoming these obstacles, the accomplishments of fiscal 2007 are something that VDC’s people can be quite proud of. To meet disclosure requirements, a press release was issued before the market opened this morning with excerpts of this morning’s address and with guidance for the balance of this fiscal year. A copy of the press release is available from the secretary before you leave today. It is always difficult in our business to forecast very far in advance; but, using the best information available to me at this time, it appears that VDC will again make substantial progress this year. Basically the press release states that VDC could exceed $90,000,000 in revenue for the first time in its 33 year history. This would be about 10% higher than our previous record. If we can maintain our gross margins in the range of 32-34%, which I believe is attainable, gross profits of $28 million to $30 million may be achievable. Again, if operating and SG&A expenses remain in line with current run rates, this should convert into pretax profits of $4.9 million to $5.3 million. This, in turn, would result in per share earnings of approximately $0.30 to $0.32 on the approximate 9.6 million outstanding shares. These projected results would be nearly double the per share earnings of the 2007 fiscal year, which, in itself, was 4 times greater than that reported in its predecessor 2006 fiscal year. The 2nd quarter, August 31, 2007, results will be available in a few weeks. The period’s results appear to be in line with expectations, but may well exceed our guidance due to a potential rebate of state taxes for which a rebate application has been filed and preliminary approval received. This document contains forward-looking statements within the meaning of section 27A of the securities act of 1933, as amended, and section 21E of the securities exchange act of 1934, as amended. in addition, from time to time, video display corporation or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the company with the securities and exchange commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions, including items discussed in the company’s form 10-K for the year ended February 28, 2007, filed with the securities and exchange commission. The company undertakes no duty to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.