Universal Display Signs Agreement with Flat Panel Display Manufacturer.

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Aug. 6, 1999--

Universal Display Corporation (UDC) (NASDAQ: PANL; PHLX: PNL), a developer of flat panel display technology, announced today the execution of a letter of intent to license its revolutionary Transparent Organic Light Emitting Device (TOLED) technology to Canadian flat panel manufacturer Luxell Technologies Inc. (LUX: Alberta Stock Exchange).

This agreement compresses the timeline for production of flat panel displays with UDC's TOLED technology and further positions the Company to penetrate the $40 billion electronic display market. The agreement will provide for integration of Luxell's proprietary high contrast black layer (B/L) technology with UDC's patented organic electroluminescent technology positioning both companies to expand product lines and business opportunities.

The alliance also calls for UDC to provide worldwide licensing of the integrated technology to high volume manufacturers of next generation flat panel displays. "The agreement will further expand our technology capability and its performance, and enable us to speed up the introduction of high contrast OLED flat panel displays to the market by integrating our technology with an established high quality, electroluminescent flat panel display manufacturer," said Steve Abramson, President and Chief Operating Officer of UDC.

The agreement with flat panel display manufacturer, Luxell, strengthens UDC's commercialization of OLED patents through strategic partnerships. In May of this year UDC began a relationship with the Materials Research Laboratory of the Industrial Research Technology Institute of Taiwan (MRL/ITRI) to assist in the commercialization and transfer of its OLED technology to Taiwanese manufacturers.

"The partnership with Universal Display Corporation is an important step in our plan to grow our business and to see our technology become a significant force in the expanding global flat panel display industry," stated Brian Kennedy, President and CEO of Luxell. "UDC has some of the best OLED technology in the world which it has developed with its research partners at Princeton University and the University of Southern California. The agreement positions us to be one of the world's leading suppliers of OLED-based flat panel displays for demanding high-end industrial applications and further enables us to broaden our product lines to eventually include low cost, full-color organic electroluminescent displays."

Pioneered by UDC's Research Partners at Princeton University and the University of Southern California, UDC's OLEDs emit very bright colorful light, should require less power to operate, and should be more cost effective to manufacture than current flat panel display technologies. UDC's OLED technologies include: Transparent OLEDs that may be used to create vision area information displays on windshields, cockpits, helmets and eyeglasses; Stacked OLED architecture that has the potential to offer a flat panel display screen for a bright, colorful, multifunctional device the size of your hand that can perform a multitude of everyday tasks, such as wireless Internet access, e-commerce, telecommunications, e-mail and daily calendar/address book applications; and Flexible OLEDs that can be built on flexible plastic and other unbreakable and/or formable surfaces. One such FOLED product would be a rollable, durable newspaper that updates the news automatically via transmitted signals, keeps you abreast of the latest breaking stories, Stock Market prices, sports scores, etc., while still retaining the easy transport properties of a standard newspaper. These advantages over existing liquid crystal display (LCD) and boxy cathode tube (CRT) technologies make OLEDs the architecture of choice for future flat panel displays.

To date, UDC's research partners have been issued 10 patents and more than 40 patents are pending in the U.S. The corresponding international patent applications have been filed. UDC has the exclusive worldwide license for the patents obtained by their research partners.

Luxell Technologies, Inc., listed on the Alberta Stock Exchange (LUX), develops, manufactures and markets high performance, solid state, thin film electroluminescent (TFEL) flat panel displays and systems that provide industry leading performance features which include: readability in all light conditions, ranging from total darkness to full sunshine, a wide viewing angle, crisp, clear images and operation over a wide temperature range. The Company's TFEL displays are unique solution suitable for various demanding application such as avionics and transportation instrumentation, medical monitoring systems, test equipment, industrial process control display and global positioning systems. Luxell has received orders from some of the largest and most prestigious companies in the world including, Lockheed Martin, Marconi Electronics Systems and Rayteon Systems.

All display technology requires a contrast solution. Luxell's core black layer technology leads the industry in contrast. Patents have been issued and new patent applications have been filed regarding the application of the company's black layer to OLED technology. The Company is currently expanding its production capacity and product line based on its existing core technology to meet the demand for the increasing market and is also advancing the development and application of its technology to multicolor and full color flat panel displays.

Luxell's headquarter and manufacturing facilities are located in Mississauga, Ontario, Canada, with additional sales offices in Canada, the United States, United Kingdom, Israel, Germany and Japan.

For additional information go to universaldisplay.com or contact David Castaneda, Investor Relations, 1-888-721-9090, [e-mail].

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.