Cambridge Display Technology Announces Plans for Next Stage of Development.

Business Editors

CAMBRIDGE, United Kingdom--(BUSINESS WIRE)--May 11, 2000

Cambridge Display Technology (CDT), a leading worldwide developer of display technology, Thursday announced several strategic initiatives to support the next development stage for its light emitting polymer (LEP) technology, an innovative display science poised to redefine the consumer electronics marketplace.

Plans for CDT include the infusion of new investment capital, the restructuring of its management team and the expansion of facilities to further the company's research and development of its LEP technology. Offering an alternative to traditional "big-and-bulky" CRTs now used in conventional televisions and computer monitors, LEP technology provides the basis for creating new products such as wristwatch-sized televisions, virtual reality headsets, flexible or formable displays and more. LEPs also offer a significant advancement over liquid crystal displays (LCD), including improved clarity, enhanced resolution, better viewing angles, lighter weight and the ability to have screens that are paper-thin.

CDT investors, headed by New York-based venture capital group Kelso & Company, are committing at least $15.12 million of additional capital over the coming months to support the next stage of development, which will increase greater collaboration with partners.

"Over the past months, CDT has responded to the needs of its licensees and other corporate collaborators with a significant deepening of the relationships," said Phil Berney, managing director at Kelso. "We are excited with the progress and look to accelerate these interactions even further."

As part of the focus of the new phase, the management team is being restructured and the CEO position, which has been kept open since the last round of investment, is now in prospect. The company has hired Heidrick and Struggles of London to handle the CEO search assignment. In the interim, Chris Smart, who has long represented some of the founding shareholders on the board, has been appointed interim CEO while the CEO appointment is finalized. Dr. Daniel McCaughan continues as chief operating officer.

Danny Chapchal, executive chairman, has chosen to step down from his position and will work in a consultative capacity while the new appointments are made.

"The company is now well positioned and having built substantial value, I am ready to go on to the next challenge," said Chapchal.

"Danny has successfully brought CDT through a major stage of its development and the future of the company will depend on that platform - we wish him every success," said Berney. "CDT will focus on a new stage of relationship forming and the consequent need to broaden the skill base."

In the past few months, CDT's staff has been delivering breakthroughs in materials and devices and building new facilities.

"With our partners, exciting new developments are close to completion," said McCaughan.

About CDT

CDT is leading research and commercial development of light emitting polymers (LEP). The company holds fundamental patents in the area that are set to significantly change a wide range of consumer electronic products. CDT announced its commercialization strategy to bring its LEP technology to market through patent and know-how licensing in the middle of 1996.

About Kelso & Company

Kelso & Company, one of the oldest and most established firms specializing in private equity investing, has been involved in leveraged acquisitions both as principal and as financial advisor since 1971. The firm makes equity investments on behalf of investment partnerships, which it manages. Since 1980, Kelso has invested in more than 67 companies with total enterprise value of more than $15 billion.