Fashion Dynamics Enters Agreement and Plan of Merger with FED Corporation.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 15, 2000

Fashion Dynamics Corporation (the "Company"), announced today that it has entered into a definitive Agreement and Plan of Merger with FED Corporation, located in Hopewell Junction, New York. In connection with this transaction, the Company has filed an application to list its common shares on the American Stock Exchange and has changed its name to eMagin Corporation.

The Agreement and Plan of Merger specifies that upon closing, FED will merge with the Company's subsidiary, FED Capital Acquisition Corporation, with FED surviving. Following the merger, the business to be conducted by the Company will be the business conducted by FED prior to the merger. In connection with the merger, the Company has raised approximately $27,250,000 in a private placement which will be used to fund the operating and capital needs of the Company. The closing of the transaction is expected to occur on or before March 16, 2000, but is subject to the satisfaction of certain conditions.

FED Corporation began operations in 1993 to exploit its semiconductor technology base to enable a new paradigm in computers, communication, and entertainment, by focusing on display systems. Its acquisition of Virtual Vision in 1998 facilitated FED's evolution into a provider of total systems solutions. FED's corporate headquarters and microdisplay operations are co-located with IBM on its campus in East Fishkill, NY. Wearable and mobile computer system design and full-custom microdisplay system facilities are located at its wholly owned subsidiary, Virtual Vision, Inc., in Redmond, WA. Sales and marketing offices are located in Santa Clara, CA and in Japan.

This release contains statements that constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21 of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk uncertainties including those described in the Company's filings with the SEC, and that the actual results or developments may differ materially from those in the forward-looking statements as a result of various factors. The Company has based these forward-looking statements on information currently available and disclaim any intention or obligation to update or revise any forward-looking statement.