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INTERCOMNEWSLETTER FOR MEMOREX EMPLOYEES

VOLUME 5, NUMBER 4 APRIL, 1968

Open House VisitorsTo Tour S.C. Plants

The INTERCOM staff welcomes employees, their families and friends tothe third Memorex Open House, thisSaturday, April 27.

We hope all of our guests will havean enjoyable and informative visit. Werealize that this is the first time manyof you will see the entire Santa ClaraTape Plant and Disc Pack facilities, sowe've planned our tours to show asmuch of the two plants as possible.

Guided tours will be leaving fromthe Disc Pack lobby at 3-5 minute intervals, between 10 a.m. and 5 p.m.,following the route shown on pagethree. Tours will take about V/2 hours.

A few areas that have been visited onprevious tours will not be on this year'sroute, because Memorex is so muchbigger than before. Since the last openhouse, in October 1966, our employment has increased from about 800, tonearly 1300 and we have made numerous changes in our facilities.

The two most obvious additions toMemorex in Santa Clara are the 40,000square foot Disc Pack and Plant Maintenance buildings, and 30,000 squarefoot J Building (formerly AssociatedMachine).

Some of the other changes in thecompany since the last open house include the following:• Los Angeles Disc Pack became awholly owned subsidiary in February,1967.

• In April Memorex took deliveryon the largest electron microscope onthe West Coast, a Siemans Elmiskop1A-125—the fourth of its kind in thenation. The Siemans has a directmagnification of 160,000 times andit can magnify up to 1 million times,if a photo enlarger is used.• The first and only in-plant industrial clean room laundry in the worldbegan operating in the tape plant inJune.

PRESIDENT WELCOMES GUESTS

To the Families and Friendsof Memorex Employees:

We welcome you to our Company.Please enjoy your visit to the fullest, ask questions of your guides,and look about freely.All of us who work together atMemorex have immense pride in

our business, so we appreciate theopportunity to make you betteracquainted with the work we do,the products we produce, the facilities and surroundings we enjoy.The leadership position of Memorex in the magnetic recording mediaand equipment markets today results from the contributions ofevery Memorex employee—production worker, maintenance man,technician, engineer, accountant,salesman, secretary, clerk, andmanager. Our pride in our business is simply our pride in thesecontributions of our co-workers.

Because of your visit, we know thatyou, our families and friends, willunderstand this pride and share itwith us.

Sincerely,

Laurence L. Spitters

President

MEMOREX TO RECEIVE "E" AWARD

FOR OVERSEAS MARKETING SUCCESSUnited States Secretary of Commerce

C. R. Smith has designated Memorexto receive President Johnson's "E"Award for success in promoting salesof U.S. products in international markets.

Phil Davis, International Marketingmanager, says the award is especiallysignificant because "it took us only

• A new family of video tapes, designed specifically for all helical scanrecorders, went into production in July.Called the Memorex 79 Series, thetapes feature a new binder formulationwhich provides extra durability, fewerdropouts and longer still frame life.

Board Asks For N.Y. Stock Exchange Listing

three years to qualify." Phil explainsthat companies can only apply to theDepartment of Commerce for the "E"Award after three years of export sales.

Normally, it is five or more yearsbefore a company is even consideredfor the honor, because of the requirement to demonstrate exceptional salesgrowth as well as unique marketingtechniques.

Although Memorex was founded in1961, we didn't start to develop ourinternational markets until 1964. Now,overseas sales account for more thana quarter of our total sales.

One of the unique qualities thatearned Memorex the award is our company's creation of an international organization to direct our efforts in overseas markets, and the recruitment ofan international sales force from the individual markets, in order to achieveeffective communications with buyersin all areas.

Our European sales operation wasestablished by Jim Guzy, now a vicepresident at Peripheral Systems, together with Phil Davis, who set upthe Santa Clara based staff.

Presentation of the award is plannedfor Mav and details will appear in thenext INTERCOM.

Memorex Directors are applying tohave our Common Stock listed on theNew York Stock Exchange, announcesCompany President Laurence Spitters.

The Company Board of Directorsis seeking to have us listed on the NewYork Stock Exchange because of theincrease in the number of shareholders(now more than 10,000), weekly trading volume which is estimated at morethan 20,000 shares and because institutional interest in our company'sCommon Stock makes up over 10% ofthe shares outstanding.

Mcmorex's 3,623,826 shares of Common Stock are held by 6,148 registeredshareholders and approximately 4,000additional beneficial shareholders

whose stock is carried in the names of

brokers and nominees.

Listing on the New York Stock Exchange, according to Mr. Spitters, willprovide Memorex and our shareholderswith daily publication of trading volume and price range, monthly short-interest figures and a more orderlytrading market.

Page 1 picture compliments of Micro-graphic I.:il>, plioio I)\ Don Stellman.

co

MEMOREX Corp.SANTA CLARA, CALIF.

BUILDING

N — Disc Pack, tour starts here.M — Plant Maintenance.

A — Tape Plant lobby, thisis original building onShulman Ave.

H —Research labs, includingMicrographics (electronmicroscope) and CoatingResearch Lab.

A —Clean Room Laundry.Material Input and Mylar Bath.

B, G —Chemical Development Labs.

F —Warehouse, Shipping.

D —Packaging and windows toClean Room Certification Area.

C —Up to third floor Computer Room,Video Test Labs and color tapedemonstration.

OPEN HOUSE

TOUR ROUTE

C —Back to first floor, Personnel and.Marketing.

A, B —Clean Room observation windows.A — Production offices.

B — Executive offices.

C —Marketing offices.J —Displays, company movie, Peripheral

Systems Display. Tour Ends.

NOTE: Please don't forget your children in the Disc Packbaby sitting area.

ON THE MOVE Stockholders Meeting Held in Santa ClaraBy Judy Bonino

Ben Kimura has received a promotion to Technician in the Quality Control Test Lab. He was previously withthe Technical Service Center group.

David Sutherland has taken a position with Disc Pack, Santa Clara, asa Sr. Utility Operator. He worked inthe Computer Department before hismove.

Dick Penny, who was with DiscPack, Los Angeles, has now joined theMarketing Department in Santa Clara,as an Applications Engineer.

Financial Public Relations - ProfitSharing has a new secretary. EvelynAuldridge, previously with Production,has been promoted to the position.

Mauricio Flores received a promotionfrom his job in Production. He is nowa Technician in Electronic Maintenance.

Electronic Fabrication has three newTechnicians. They are Ron Wilcox,John Desmond, and Leslie Bruntz, whowere all previously with ElectronicMaintenance.

Ann Bassford, who is with In-Process Inspection, has been promotedfrom an In-Process Inspector to aMechanical Inspector.

Director of New Product Development Ken Taylor announces the promotions of Mike Martin, Finn Jorgen-sen and Jerry Youngstrom.

Mike takes the new position of manager, Video Product Development.Finn is now manager of Instrumentation Product Development. Jerry becomes manager, Computer Tape Product Development.

PERIPHERAL NAMES NEWNATIONAL SALES MANAGER

William Collins, a former nationalaccount representative for IBM, is thenew national sales manager of Peripheral Systems, according to Jim Guzy,marketing vice president at Peripheral.

Prior to employment with IBM, hewas associated with the Discfile Division of Data Products Corp., CulverCity, as national sales manager. Thesale of Peripheral's magnetic disc recording equipment in North Americais Bill's new responsibility.

Bill has a B. A. in geology fromCarlton College, Minnesota. He alsoattended the University of North Carolina graduate school, studying geophysics.

The 1968 Annual Shareholders meeting was held Friday, April 26, in theAssociated Machine building, corner ofShulman Avenue and Ronald Street,Santa Clara.

Supervisors Club PlansTour of TV Station

The Supervisors Club will tourChannel 11 KTTV facilities thismonth, the second tour of its kind sincethe club began, according to RogerCook, executive board member. Thegroup visited Eastman Kodak, PaloAlto, December 19.

"This should be especially interesting," says Roger, "since KTTV is oneof our Video Tape customers. We'llhave a chance to see one of our products in use."

In addition to occasional tours, clubmembers gather once every two monthsfor an evening dinner meeting at theSan Jose Hyatt House. During the dinner Discussion Leaders guide table talktoward the topic of the evening's featured speaker.

The Supervisors Club was formedless than a year ago and has about60 members. Foremen and supervisorsinvloved in actual plant operation andproduction make up the membership.

Sales Managers MeetTo Discuss 1968 Plans

Regional Sales Managers met at OakBrook, Illinois, for the National Regional Sales Managers Conference,April 3-4.

National Sales Manager Bill Gaskinschaired the quarterly meeting that outlined 1968 sales plans and programs.At the top of the agenda, according toGerald Miller, marketing planningmanager, was Disc Pack sales.

Other annual plans and programsdiscussed included product sales, salessupport and training.

MAG DISCOUNTSMAG discounts have become a real

ity!! A number of local merchants arenow offering discounts to MAG members. Interested members should checkfor information that will be posted onthe bulletin boards. Call Ron Cavender,Ext. 226, if you have further questions.

At the top of the agenda was theelection of Corporate Directors for thecoming year. Results were not available at press time, but these men hadbeen nominated to the Board of Directors: Alger Chaney, W. Noel Eld-red, Prentis C. Hale, W. L. Noon, T.Robert Sandberg, Laurence L. Spitters,Fred M. van Eck, Dr. Theodore Ver-meulen and Dr. Alejandro Zaffaroni.All were members of the CompanyBoard prior to the casting of ballots.

Action was also taken on a proposalto amend the Articles of Incorporation.The amendment provided for a restatement of the authorized stock of Memorex to 1 million shares of Preferred

Stock, at $100 par value, and 10 million shares of Common Stock, $1 parvalue.

Products DisplayedAt NABC Trade Show

Memorex met the nation's televisionbroadcasters on their own grounds,March 31 through April 3, at the National Association of Broadcasters Conference (NABC) in Chicago's ConradHilton Hotel. It is the biggest tradeshow of the year for video tape products.

The Memorex booth, according toAssistant Manager of Advertising-Promotion Neal Dempsey, featured our78V High Band Video Tape. Prerecorded program material from ABCand CBS Television Networks (WinterOlympics, Hollywood Palace, LawrenceWelk), as well as live video recordingsfrom the show's G.E. and Norelcobooths, highlighted the display.

INTERCOMNEWSLETTER FOR MEMOREX EMPLOYEES

EDITOR: Gary WilliamsASSISTANT EDITOR: Greg BalkovekSTAFF: Sara Millar, Roger Cook

Judy BoninoCORRESPONDENTS:

Jim Boothe (L. A. Subsidiaries)Virginia Koeberle (PSC)

An official publication for employees ofMemorex Corporation. Published monthlyby the Industrial Relations Division, 1180Shulman Ave., Santa Clara, Calif. 95050.

Member of:

BASICBay Area Society

of IndustrialCommunicators

InternationalCouncil

of IndustrialEditors

LITKO IN U.S. A

FIRST SAVINGS BOND CAMPAIGN COMING TO MEMOREXToday, whether we like it or not, we

are living in a changing and unsettledtime —a time when young and old,alike, voice concern about a myriad ofproblems, from inflationary pressureswhich threaten our economy, to crimeand violence in our cities. Yet themajority of us never get much fartherthan just talking about what shouldbe done.

Next month we are going to giveMemorex employees a chance tochange that, by offering an opportunity to take constructive action on amatter of national importance—a simple, but highly effective plan tostrengthen the American economy.

May 20 will mark the beginning ofthe first United States Saving BondDrive at Memorex. Buying U. S. Bondsis a sound investment that millions ofAmericans have used for years to further themselves and, at the same time,help our country.

The Savings Bonds Program is a keyelement in the sound management ofthe public debt. The U. S. TreasuryDepartment states that the program"provides a non-inflationary anchor ofstability in protecting the values of thedollar. It is essential that we helpspread the debt more widely into thehands of individuals through a safeand proven form of public financingto combat rising costs and inflationarypressures."

Savings Bonds can also be a key element in your private life. You can buythem through the Payroll Savings Plan,probably the safest, easiest and mostpainless method of saving you will everfind. The plan is automatic. Youmerely determine how much you wantto put away each payday and the money is automatically deducted from yourcheck. When enough money has accumulated, you will receive a Series ESavings Bond.

This is the same method of savingthat has helped make dreams come truefor millions of families through theyears —financing new homes, collegeeducations, retirement and other important needs. Signing the PayrollSavings application card next monthmakes those dreams begin to happen.

Following are some of the importantfeatures of Series E Bonds: They areindestructable. (1) If lost, stolen, mutilated or destroyed the Treasury Department will replace them. (2) Every$3 invested in Series E Bonds returns$4 at maturity, now in just seven years.The average annual interest rate of4.15%, when held to maturity, is guaranteed and both principal and interestare backed by the full faith and creditof the U. S. (3) E Bonds may be redeemed for full purchase price, plusaccumulated interest, any time afterthe first two months. (4) Savings

Bonds are exempt from state and localincome taxes, and federal tax on EBond interest may be deferred untilthe Bonds are redeemed.

There is also another type of U. S.Savings Note, called a Freedom Share,that is sold only as a companion toSeries E Savings Bonds (on approximately a one-for-one basis) and isavailable at Memorex, but only throughPayroll Savings.

Freedom Shares pay 4.74% interestwhen held to maturity (4l/2 years) andmay be redeemed after one year. LikeE Bonds, they are available with facevalues in four denominations: $25, $50,$75, $100.

Freedom Shares and Savings Bondsare sold as a package. One allotmentbuys both. To give an example, a $25Bond and a $25 Share (combined purchase price of $39) may be purchasedin six paydays with a single allotmentof $6.50 per payday.

You can sign up for E Bonds alone,or for the combination. But you can'tsign up just for Freedom Shares.

We all need some kind of savingsprogram, be it for a new home, junior'scollege education, additional retirementfunds, or just for emergencies. Helpyourself while you help our nation.When the canvasser approaches youthe week of May 20, sign up for Payroll Savings. You'll be glad you did.

New Investment Council For Profit Sharing

The Profit Sharing Executive Committee unanimously selected the firmof Brokaw, Schaenen, Clancy & Company to act as investment manager ofthe Profit Sharing funds starting April1, 1968.

The Executive Committee, after theanalysis and review of more than onedozen professional investment managers, selected Brokaw, Schaenen, Clancy& Company (BSC) because of theirexcellent record as investment managers of pension, profit sharing andother funds. BSC, located in NewYork City, manages accounts totalingseveral hundred million dollars andhas achieved performance records forthe funds under their management ofcapital appreciation substantially abovethe Dow Jones Industrial Averages andthat of most other investment managers.

By John Morse

The Memorex Profit Sharing fundswill still be held by the Bank of America, as Trustee of the Plan. However,BSC will now take over the responsibility of recommending how thesefunds are to be invested.

The Executive Committee, in consultation with BSC, has adopted thefollowing investment policy as a guideline for the investment of funds in theMemorex Profit Sharing Plan:

The principal investment objective forthe Profit Sharing Trust is long-termgrowth of the Fund through investment in common stocks. A reason

able limitation upon risk and uponthe volatility of the market value ofinvestments will also be an importantfactor in investment decisions. Theexact proportion of the portfolio incommon stocks and fixed income

securities will be left to the discretion

of the investment counsel. The factors of liquidity and income will beconsiderations only in planning fornormal operating expenses and termination distributions.

The investment of the funds in theProfit Sharing Plan is a major responsibility of the Executive Committee andits designated investment counsel. AllProfit Sharers participate in the investment income and capital appreciationof the Profit Sharing investments. Ifthe funds are invested wisely, this income and appreciation will materiallyincrease the value of each member'saccount. For example, each member'sshare of the Company's annual contributions will double in value in about7j/2 years if the investments appreciatein value at the rate of 10% per year.

MEMOREX INTERCOM

Memorex CorporationSanta Clara, Calif. 95050

RETURN REQUESTED

MAG MEMBERS OFFERED "SWINGING" GOOD TIMEIt'll be a "swinging" good time for

all MAG members attending the annual Spring Fling, May 11, in PaloAlto's Cabana Hotel.

Past MAS PresidentsForm Advisory Group

Interest in the planning of MAG activities doesn't die at the end of a termin office, it continues to grow. At leastthat's the general feeling currentlygenerated by a group of MAG pastpresidents, says Jcri (Johnson) Deck-ard, MAG president.

The former presidents are interestedin utilizing their experience in an advisory fashion to benefit MAG.

Initial interest in the group wasstirred by Bud Oliver, who contactedeach of the former presidents. He suggested that they band together in asmall advisory group and offer their"experiences" and ideas to MAG.

Members of the MAG past presidentsadvisory group include Bud, RogerCook, Jim Ellis, Don Horn and RussJohnston.

The entire Circus Maximus Roomof the hotel, 8,900 square feet of hip-swinging space, will be the center ofMAG activity, from 9 p.m. to 1 a.m.,for the casual dress affair.

Walt Tolleson, well known for his"Golden Sounds by the Golden Gale,"and his ten-piece Musical Organization will provide music for the occasion. Featured female vocalist Marianne Kent will highlight the evening'smusical entertainment.

To give the Fling a Western flair,Santa Clara Valley's Jubilaires, exhibition square dancing group, will perform during the orchestra breaks. MAGmembers are invited to join in the funand try their feet at the Western styledance steps.

Hois d'oeu v res will be servedthroughout the evening and saloonfacilities will be provided. The CircusMaximus Room has a direct entranceto parking areas, eliminating a walkthrough the hotel lobby.

Free tickets are now available to allMAG members from Receptionist PatKostelnik, in the Personnel Lobby.

L.A. Employees Group Off To Fast StartAn employees activities group was

formed at our three Los Angeles subsidiaries in late March and already itit growing like one of L.A.'s famousbrush fires.

Del DcfTenbaugh, the group's president, reports that more than 50% ofthe employees at Disc Pack, Substrate,and Comdata had become members bypress time.

Del expects more than 90% of theemployees to sign up by May 1. onlyfive weeks after the group officiallybegan recruiting members.

After seeing the activities the newgroup is planning, it's easy to see whyit has caused so much excitement. Thefirst planned activity is a contest tochoose a name for the group. It will

be affiliated with Santa Clara MAG,but will have its own identity.

Other activities now in the planningstage include a summer picnic, a June1 bus trip to a Giant-Dodger game atChavez Ravine, and Christmas partiesfor the adults and their children. Thegroup has also applied for Magic Kingdom Club cards from Disneyland, putout suggestion boxes in all three L.A.plants, and begun to set up a discountbuying program in their area.

Besides Del, the other new officersare Janctta Tims, vice president; LeeCogswell, secretary; and Dick West,treasurer. Jim Boothc will be photographer and reporter and Tom Howard,recently transferred from Santa Clarato Disc Pack, will be management representative.

FEATURED VOCALIST-

is just one of the enter!Marian in- Kent

uiners who will

be featured at the May 11 Spring Fling.