Kopin Announces Production Contract Award with Raytheon for Display Systems to Be Used in U.S. Army Thermal Weapon Sights.

Business Editors/High-Tech Writers

TAUNTON, Mass.--(BUSINESS WIRE)--June 30, 2003

Ultra-low power and high reliability make CyberDisplay 640M

ideal for Army's infrared Light Thermal Weapon Sight (LTWS)

Kopin Corp. (Nasdaq: KOPN) today announced the award of a defense contract for production display systems that will help soldiers "see" in total darkness, adverse weather, and through battlefield smoke and dust. Kopin was awarded the contract because the performance of its CyberDisplay(TM) 640M microdisplay system met aggressive weight, battery life and reliability targets.

Kopin will provide Raytheon Company with microdisplay systems based on the industrial grade CyberDisplay 640M. This rugged active matrix liquid crystal display (AMLCD) will operate as the infrared (IR) viewing device on Raytheon's Light Thermal Weapon Sight (LTWS), which is designed for U.S. Army- and Marine-issued M-16 and M-4 rifles.

The LTWS has been in development since Raytheon won the U.S. Army's Thermal Omnibus program in 1998, and production deliveries are scheduled to begin this summer. "We selected Kopin's CyberDisplay 640M because of its low power, high reliability and excellent image quality," said Dave Krueger, Raytheon's LTWS program manager. The low-power imaging and display system is the result of an integrated product development effort between Kopin and Raytheon, Mr. Krueger continued. "The success of the LTWS system depended heavily on minimizing weight and extending battery life," he said. "Kopin's engineers worked with our development team to configure a display system that exceeds very aggressive targets for both weight and power consumption."

Kopin will provide display systems consisting of the CyberDisplay 640M AMLCD, backlight and interface/control electronics. The display system converts the output from Raytheon's IR imaging electronics to a high-resolution monochrome image of pristine quality. The CyberDisplay 640M is a ruggedized industrial grade monochrome VGA display with 640 x 480-pixel resolution in a 0.38-inch diagonal package. With an operating temperature range of -37 to +65 C in a low-power, durable package, Kopin's CyberDisplay 640M is ideal for a broad spectrum of infrared imaging applications. Technology research firm Maxtech International estimates that the U.S. market for infrared imaging devices will exceed $2 billion by 2004.

"The performance advantages of Kopin's CyberDisplay make it an ideal option for a wide range of thermal imaging systems, from military products such as the LTWS to marine, border patrol, paramilitary and firefighter applications," said Dr. John C.C. Fan, Kopin's president and chief executive officer. "Our expertise in developing ultra-low power, high-performance, battery-operated subsystems positions us to capitalize on a wide range of exciting opportunities in the infrared imaging market. Our display systems are now qualified, designed in, and ready for production and use in very demanding situations."

About Raytheon

Raytheon Company (NYSE:RTN), with 2002 sales of $16.8 billion, is an industry leader in defense, government and commercial electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Lexington, Mass., Raytheon employs more than 76,000 people worldwide.

About Kopin

Founded in 1984, Kopin is pioneering the use of nanotechnology to manufacture nanosemiconductor products that make mobile electronic devices small, fast, bright, lightweight and power efficient. With an intellectual property portfolio of more than 200 issued and pending patents, Kopin supplies the world's largest electronics manufacturers and government agencies with breakthrough semiconductor products. The company's liquid-crystal microdisplays, ultra-efficient transistors and high-brightness GaN LEDs enhance the delivery and presentation of voice, video and data. Kopin technology is currently used in nearly one-third of the world's cell phones and camcorders and is the microdisplay standard for the U.S. military. For more information, please visit Kopin's Web site at www.kopin.com.

CyberDisplay and CyberLite are trademarks of Kopin Corporation.

Statements in this news release about Kopin's contract with Raytheon Systems Corporation are made under `safe harbor' provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are general economic and business conditions, the cancellation of U.S. Army's Thermal Omnibus program, Kopin's ability to supply microdisplays systems to the required specifications, the impact of competitive products and pricing, availability of third-party components, viability of integrated circuit fabrication facilities, cost and yields associated with production of the Company's CyberDisplay imaging devices, and the other risk factors and cautionary statements listed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. These include, but are not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and Quarterly Report on Form 10-Q for the period ended March 29, 2003.