One of the last remaining manufacturers of magnetic recording tape for analog tape decks announced they would be discontinuing the sale of open-reel magnetic tape products. Quantegy, formerly Ampex, announced the discontinuation of open-reel tape products on its website and in memos to its distributors this week. Below is a transcript of a letter from Total Media, a Quantegy distributor in the US.

Hello,

As a valued customer of Total Media, I wanted to inform you that Quantegy (Ampex) Recording Media will soon cease production of all blank audio open reel tape. We are in the process of scaling down our existing inventory of open reel tape and there are no assurances of future product availability.

According to a recent memo from Quantegy, they will continue to accept orders from their distributors until February 28, 2007. They will evaluate those orders and where economically feasible, manufacture both audio and video recording media to fill those orders during March and April 2007. There is no guarantee they will be able to fulfill all the orders they receive.

They have also instituted an immediate price increase of as much as 20% on some items.

If you are going to need Quantegy open reel tape in the near future, I would suggest you visit our website http://www.totalmedia.com...and place your order as soon as possible. Again, please understand we cannot guarantee availability or a shipment date. We will advise you accordingly.

As a Quantegy (Ampex) distributor for 17 years we deeply regret this news. Started in 1957 as Ampex Magnetic Tape, this fine company was a pioneer in both audio and video recording and they will be missed as a valued supplier.

As always, if there are any questions or if I can be of addition service, please be sure to contact me

Jerry Ghinelli

President

Total Media Inc.

This development, combined with a similar announcement in Europe last week leaves only two sources for analog tape remianing in the world, both much smaller than Quantegy - Holland's RMG and ATR Magnetics of Pennsylvania.