Universal Display Corporation Awarded DOE SBIR Phase II Contract for Solid-State White Lighting; Phase II contract follows successful completion of Phase I to continue development of efficient white light sources.

EWING, N.J. -- Universal Display Corporation (NASDAQ:PANL), the Company that's lighting the way in developing and commercializing OLED technology for displays, lighting and other opto-electronics, announced today that it has been awarded a two-year, $750,000 Small Business Innovation Research (SBIR) Phase II contract by the U.S. Department of Energy (DOE) to develop a novel white OLED light source featuring the Company's proprietary TOLED(R) transparent OLED technology.

In this program entitled, "High Efficiency White TOLED Devices for Lighting Applications," the Company is employing its proprietary TOLED technology to demonstrate a novel lighting concept with improved light extraction. In a conventional OLED, only approximately 25 - 30% of the light generated in the device is emitted to the viewer. Technologies to extract more of the light generated as useable light emission are important for achieving the performance required for OLEDs in lighting applications. During the Phase I program, Universal Display demonstrated a 20% enhancement in the amount of light extracted from an OLED by using the Company's TOLED structure integrated with an external reflector. During this follow-on Phase II, the Company intends to optimize the performance of this novel design for white lighting applications.

White OLEDs have the potential to generate light more energy-efficiently than traditional light sources. With general lighting consuming over 20% of U.S. energy resources, white OLEDs may provide important new opportunities for significant energy and cost savings on a national as well as global basis. OLEDs today are emerging as flat panel displays in cell phones and other portable electronic devices, and are also under development for large-area TV applications. With the advances underway through this and other U.S. Department of Energy programs, OLEDs may also become an important solid-state lighting technology for a plethora of general lighting applications.

"We are very pleased to receive this U.S. Department of Energy Phase II contract to continue exploring novel approaches to achieve improved OLED performance leveraging our proprietary TOLED and PHOLED technology platforms," says Steven V. Abramson, President and Chief Operating Officer of Universal Display Corporation. "Through the ingenuity of our team at Universal Display, this novel lighting concept may be a significant step toward demonstrating the requisite performance for use in residential, commercial and industrial lighting applications."

For more information on the Company, please visit Universal Display Corporation at http://www.universaldisplay.com.

About Universal Display Corporation

Universal Display Corporation is a world leader in developing and commercializing innovative OLED technologies and materials for use in the electronic flat panel display, lighting and other opto-electronic markets. Universal Display is working with a network of world-class organizations including Princeton University, the University of Southern California, and PPG Industries. The Company has also established more than 20 development programs and other similar relationships with companies such as Tohoku Pioneer Corporation, who introduced the Company's PHOLED technology in a cell phone subdisplay; Samsung SDI Co., the world's leading OLED manufacturer, who is expected to soon begin producing active-matrix OLED displays using Universal Display's PHOLED technology; AU Optronics Corporation; DuPont Displays, Inc.; Seiko Epson Corporation; Sony Corporation; and Toyota Industries Corporation. The Company has also licensed its OVPD technology to AIXTRON AG for the development of next-generation OLED manufacturing equipment. Universal Display currently owns or has exclusive or sole rights in over 700 issued and pending patents worldwide.

Universal Display is located in the Princeton Crossroads Corporate Center in Ewing, New Jersey, minutes away from its research partner at Princeton University. Universal Display's state-of-the-art facility is designed to further technology and materials development, technology transfer to manufacturing partners and work with customers to develop products to meet their needs for OLED products. Visit Universal Display on the Web at www.universaldisplay.com.

All statements in this document that are not historical, such as those relating to Universal Display Corporation's PHOLED(TM) technology and potential applications of that technology, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation's current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation's periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled 'Factors that May Affect Future Results and Financial Condition' in Universal Display Corporation's annual report on Form 10-K for the year ended December 31, 2004. Universal Display Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this document.