Universal Display Corporation Announces Major Development, Demonstrates World's Highest Efficiency OLED.

BALA CYNWYD, Pa.--(BUSINESS WIRE)--June 10, 1999--

Universal Display Corporation (UDC) (NASDAQ; PANL; PHLX; PNL), a developer of flat panel display technology, announced today that its research partners, Princeton University and The University of Southern California, have demonstrated a new high efficiency, bright green-emitting Organic Light Emitting Device (OLED) for flat panel display and other opto-electronic applications.

Recently announced by Dr. Stephen R. Forrest, Professor of Electrical Engineering at Princeton University, at the International Symposium on Functional Dyes in Osaka, Japan, this record-breaking device employs a new iridium-based dopant molecule that emits light based on the mechanism of OLED electrophosphorescence.

"Our new OLED compound emits a very bright, beautiful green color that is 50% more efficient than previously published results for OLED's. This demonstration expands UDC's family of proprietary electrophosphorescent materials for OLED applications, in addition to its other three technology platforms of transparency, stacked pixels and flexible OLED's and should accelerate the acceptance of our OLED technology for commercial flat panel display applications," noted Steven V. Abramson, President of UDC.

Electrophosphorescent dopants offer a number of advantages over conventional approaches to emitting light in OLED devices, including greater power efficiency.

This first device exhibits peak external quantum efficiencies of 8% (28 candelas per Ampere) and peak power efficiency of 31 lumens per watt at 510 nm (corresponding to CIE coordinates of (0.27, 0.63)) and has a maximum luminance of about 100,000 cd/m2.

Increased efficiency translates into an OLED display with significantly reduced power consumption, a feature that is particularly important for handheld portable applications and future internet appliances.

The rapidly growing display market is currently estimated at $40 billion annually worldwide, comprised mostly of cathode ray tube (CRT) and liquid crystal display (LCD) technologies. OLEDs are seen as a future replacement technology for CRTs and LCDs, due to their bright, beautiful colors, wide viewing angle, compatibility with full motion video, broad temperature ranges, thin and conformable form factor, low power requirements and the potential for low cost manufacturing processes.

UDC recently announced that it raised over $9 million from the exercise of common stock warrants and the private placement of securities. Last month it announced that it has begun working with its first commercialization partner, the Materials Research Laboratory of the Industrial Research Technology Institute of Taiwan (MRL/ITRI).

Ten patents relating to OLED technology have already been issued including patents for the Company's three important technology platforms--transparency, flexibility and high resolution, full-color, vertically stacked pixels. In addition, more than 40 patents are pending in the United States and corresponding international patent applications have been filed.

UDC is the exclusive licensee of all technology developed in the Project. For more information, visit our web site at universaldisplay.com.

All statements in this press release that are not historical are forward-looking statements.

Such statements are subject to risks and uncertainties that could cause actual results to differ materially for Universal Display Corporation from those projected, including, but not limited to, uncertainties relating to technological approaches, product development, manufacturing, and marketing acceptance, uncertainties related to cost and pricing of Universal Display products, dependence on collaborative partners, and other competition, risks relating to intellectual property of others and the uncertainties of patent protection.

These are discussed in periodic reports filed with the SEC, including the Company's annual report on Form 10-KSB for the year ended December 31, 1998 and quarterly report on Form 10-Q.

Universal Display Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Universal Display Corporation's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.