Universal Display Corporation Wins Army SBIR Contract to Focus on the Use of Metal Foil for Flexible Displays.

Business Editors/High-Tech Writers

EWING, N.J.--(BUSINESS WIRE)--Jan. 21, 2003

Universal Display Corporation (NASDAQ:PANL; PHLX:PNL), a leading developer of flat panel display technology, has been awarded a $69,850 Small Business Innovation Research (SBIR) Phase I contract by the U.S. Department of the Army to demonstrate the feasibility of building active-matrix, organic light-emitting device (AMOLED) displays on durable metal foil for use in military applications where size, weight and ruggedness are critical.

Universal Display is a pioneering developer of flexible OLED (FOLED(TM)) technology on plastic substrates. During this SBIR Phase I Program, Universal Display will use this technology to design and develop a flexible AMOLED display on flexible thin metal foil. While most OLED displays require the use of a transparent substrate such as glass, the Company's proprietary, top-emission OLED (TOLED(TM)) technology enables this novel use of an opaque metal substrate. In addition to providing added ruggedness for demanding military applications, the use of durable metal foil may accelerate the development of flexible poly-silicon thin film transistor (TFT) backplanes, which today is considered the limiting factor for the commercialization of flexible AMOLED displays.

Based on Universal Display's recent development of high-efficiency phosphorescent OLED (PHOLED(TM)) technology, OLEDs are becoming well-recognized for their power consumption benefits, in addition to providing excellent brightness and viewing angle performance that are critical features for many military applications. Beyond these military applications, there is a growing interest in incorporating these display features in numerous commercial, mobile communication products. Additionally, the Company's FOLED and TOLED technologies have the potential to create a host of novel display products and market opportunities, including wearable electronics and transparent displays on windows and windshields.

"We are very excited to have won this very competitive SBIR award," stated Steven V. Abramson, President of Universal Display Corporation. "It is our third SBIR program from the Army, in addition to our ongoing programs with the Army Research Laboratories (ARL) and Defense Advanced Research Program Agency (DARPA). Our technology can benefit the U.S. military in key areas, including its multi-faceted application for the 21st Century Command and Control, Objective Force Warrior handheld devices, as well as for avionic and other transport applications."

The Federal SBIR Program is designed to stimulate technological innovation in the small business sector and typically consists of three phases. During the first phase, the scientific, technical and commercial merit and feasibility of a novel idea is demonstrated. If successful, a subsequent Phase II Program may be awarded that is typically $500,000 to $750,000 over a 24-month period to pursue further research and the development of a well-defined prototype. In a final Phase III Program, the demonstrated prototype is developed into a viable product for sale in the military and/or private sector.

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 Organic Light Emitting Device (OLED) technologies. It is collaborating with a network of world class organizations to penetrate the electronic flat panel display market, including a long-standing relationship for innovative OLED research with Princeton University and the University of Southern California; a joint development and cross-licensing agreement with DuPont Displays for P2OLEDs; a joint development agreement with Sony Corporation for OLED television monitors; a joint development agreement with Samsung SDI focusing on portable OLED devices; a strategic relationship for the commercialization and production of its proprietary high efficiency OLED materials with PPG Industries, Inc. of Pittsburgh, PA, USA; and a partnership with AIXTRON AG of Aachen Germany for the development and production of the next generation of OLED production equipment using Universal Display Corporation's proprietary organic vapor phase deposition (OVPD) technology.

Universal Display Corporation is located in the Princeton Crossroads Corporate Center, Ewing, NJ, minutes away from its research partner at Princeton University. Its 21,000 sq. ft. facility includes a pilot production line, as well as technology development and technology transfer facilities. The state-of-the-art facility has been designed to further technology development, technology transfer to manufacturing partners and work with customers to develop products to meet their needs for electronic flat panel displays. Visit Universal Display Corporation on the Web at http://www.universaldisplay.com.

Recent News Coverage

The December 24, 2002 issue of PC Magazine ran a profile on Universal Display Corporation's FOLED technology and the Universal Communication Device(TM), including a photo of the UCD.

On November 12, 2002, CBS Evening News with Dan Rather featured Universal Display Corporation as a leading developer of OLED technology, discussing its future product applications as well as showcasing its FOLED and Universal Communication Device(TM) prototypes. The segment was "teased" twice and included an endorsement by Dan Rather coining the prototype the "plastic fantastic."

In the September 23, 2002, edition of Newsweek magazine, Universal Display Corporation's Universal Communication Device(TM) appeared in the "Papa's Got a Brand-New Bag" piece presenting the briefcase of the future as a portable, impact-resistant office. The piece included a description of the Universal Communication Device(TM) as well as a full-color image.

All statements in this news release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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, statements regarding Universal Display Corporation's beliefs, expectations, hopes or intentions regarding the future. 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. It is important to note that actual outcomes and Universal Display Corporation's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as: uncertainties relating to developments and advances in display technologies, including OLED, TOLED, SOLED, PHOLED FOLED, and P2OLED technology; the expansion of applications for OLED technology; the success of UDC and its development partners in accomplishing technological advances; including but not limited to, Organic Vapor Phase Deposition (OVPD) processes; the ability of Universal Display Corporation to enter into alliances with product manufacturers; 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-K for the year ended December 31, 2001 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.