Dutton & Associates Announces Investment Opinion: Dutton & Associates Maintains Buy Rating In SI Diamond Technology Update.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Dutton & Associates

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Oct. 25, 2002

J.M. Dutton & Associates reiterates its Buy rating in its quarterly coverage of SI Diamond Technology (OTCBB:SIDT). The update report's 12 month price target is reduced to $1. The 4-page report by J.M. Dutton analyst Randall Lewis, CFA, is available at www.jmdutton.com and from Zacks, First Call, Multex, Bloomberg and other leading financial portals.

Following the same valuation methodology as in our initial report, we are lowering our price target due to lower estimates and lack of visibility. Most, if not all, of the stocks in SI Diamond's space have experienced significant declines over the same time frame. We feel that the biggest recent event is the change in the Company's corporate strategy with respect to its business model surrounding its E-Window product. SI Diamond is adopting a licensing model to replace the direct sales approach. Under this model, the Company will target display firms that already have established relationships with retailers and license the E-Window technology to them. The Company's R&D subsidiary, Applied Nanotech, Inc. (ANI) is focused on developing new applications in nanotechnology, such as carbon nanotubes, metalized nanoparticles, silicon nanocrystals, nanowires and hydrogen sensors. Effective October 1, 2002, the Company sold the operations of its Sign Builders of America, Inc. subsidiary.

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