Universal Display Corp. and Princeton University's POEM Center Announces Full-Color Organic Display Technology Advances for Televisions and Computers -- A $30 Billion Worldwide Market.

BALA CYNWYD, Pa.--(BUSINESS WIRE)--July 2, 1997--Universal Display Corp. (NASDAQ:PANL) and Princeton's Center for Photonics and Optoelectronic Materials (POEM) announced the current issue of Science magazine, dated June 27, 1997, reports a team of scientists at Princeton University and the University of Southern California (USC) has developed an independently controlled, tunable, three-color organic light-emitting device, which is expected to permit such applications as high-definition televisions (HDTV) with flat displays that hang on a wall like a painting and laptop computers with bright displays that consume considerably less energy.

Universal Display Corp. is the exclusive licensee of this organic light-emitting diode (OLED) technology.

"The new technology uses a vertical stacked pixel architecture that allows for independent tuning of color, grayscale, and intensity. Each color element -- the primary colors red, blue and green -- can be continuously and independently varied allowing the device to emit any mixture of the constituent colors.

"By contrast, the standard cathode-ray tube currently used in televisions and computer screens requires pixels comprising side-by-side red, green, blue phosphors; the eye achieves color by fusing the primary shades.

"The stacked design should allow for the creation of bright displays with more intense true color and higher resolution than possible with the traditional side-by-side phosphors," said the authors in the Science article.

"The real achievement here is a manipulation of materials that only appears possible with organics," said Dr. Stephen Forrest, who is the James S. McDonnel Distinguished University Professor of Electrical Engineering at Princeton.

"Organics do not have to be crystalline to be deposited on a substrate. This fact allows extraordinarily thin layering and enables us to capture their transparency to radiation." It is this transparency property of organic materials that enabled Princeton to develop a highly transparent OLED (TOLED) as a cornerstone for the development of this vertically -- stacked OLED (SOLED) architecture.

"The display market is currently estimated at $30 billion annually worldwide, comprised mostly of cathode ray tube and liquid crystal display (LCD) technologies. Organic Light Emitting Diodes (OLEDs) are seen as a future replacement technology for LCDs, due to their brightness, energy efficiency and cost effectiveness.

"While additional development and commercialization efforts are required before this technology is available to be used in products, this demonstration is a significant step forward," Steven V. Abramson, president and chief operating officer of Universal Display Corp.

Universal Display Corp., a development stage company, is engaged in the research, development and commercialization of this revolutionary, proprietary, organic light emitting diode technology for flat panel displays, lasers and other applications.

More than 30 patent applications are pending by its research partners, Princeton University and the University of Southern California.

Universal Display Corp. is the exclusive licensee of these patent portfolios.

Universal Display is also part of a team that recently received a $3 million award from U.S. Department of Defense Advanced Research Projects Agency (DARPA) for the continued development of ultra-lightweight, full-color OLED flat panel display technology.

The company recently announced an organic laser breakthrough that may lead to significant opportunities for the $2 billion semiconductor laser diode market.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements.

Factors that could cause the company's actual results to differ materially from those indicated in this press release include, among others, its ability to achieve further technology breakthroughs necessary to produce commercially viable devices and other factors discussed in the company's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended Dec. 31, 1996 and subsequent quarterly reports on Form 10-Q.

CONTACT: Universal Display Corp.

Dean Ledger, executive vice president, 800/599-4426

fax: [phone]

or

Princeton University's Center for Photonics and

Optoelectronic Materials

Joseph Montemarano, director of industrial liaison

609/258-2267, fax: [phone]