eMagin Slated for Two Projects in Latest DoD Appropriations Bill.

Efforts to Focus on Lower-Power and Higher-Resolution Microdisplays

BELLEVUE, Wash. -- The FY 2007 Department of Defense Appropriations Bill includes two priority projects sought by eMagin Corporation (AMEX:EMA) and the U.S. Army. eMagin, the leader in OLED (organic light-emitting diode) technology, will conduct two technology development efforts to support projected military needs. The first aims to improve the power-efficiency of OLED microdisplays for U.S. Army thermal imaging applications; the second will result in a very high-resolution, HD-compatible display for U.S. Army medical applications.

The bill has budgeted $2.75 million to support the two projects for fiscal year 2007. The projects will involve design and engineering resources in both New York and Washington.

Already the most efficient microdisplay for near-eye applications, OLED microdisplays are still early in their development cycle. According to Susan Jones, executive vice president and chief marketing officer, eMagin Corporation, "Our recent gains in developing our OLED-XL (TM) technology were dramatic, but research in the OLED industry indicates that the technology can be even more power-efficient. This project will get more efficient thermal imagers to our soldiers sooner." The project will develop a power-efficient microdisplay and interface, suitable for use in thermal imaging devices for Army troops, providing at least a 3x reduction in power from legacy technologies.

eMagin's current SVGA and SVGA+ OLED microdisplays represent the highest resolutions typically available for near-eye applications. Medical training simulations and battlefield medicine both require even higher resolutions. The goal of eMagin's second effort is to design and prove these much-needed microdisplays. "That means achieving the finest pixel-pitch for any display, ever," noted Jones. "The benefits for medical training and practice will mean more lives saved, more wounds correctly diagnosed and treated." The effort will involve not only the design and prototyping of ultra-high resolution microdisplay but also a conceptual optical design to provide confidence that a wide field-of-view, compact and lightweight head-mounted display system can be built to meet the military's stringent medicine training and simulation requirements.

Jones commended the strong support from Representatives Sue Kelly and John Sweeney of New York and Dave Reichert of Washington in spearheading efforts to approve the funding in the Defense bill. New York's Senators Hillary Clinton and Chuck Schumer and Washington Senator Patty Murray were also strong advocates of the projects in the U.S. Senate. "We are very pleased the Congress recognized that these two projects are critical to the war fighting mission of the U.S. military," said Jones. "We are also extremely grateful for the support we have received from our Congressional Delegations in New York and Washington state."

About eMagin Corporation

A leader in OLED microdisplay technology, eMagin integrates high-resolution OLED microdisplays with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs. The company's own Z800 3DVisor, provides 3D stereovision and headtracking for PC gaming, training and simulation, immersion therapy, and other applications. eMagin's microdisplay manufacturing and R&D operations are co-located with IBM on its campus in East Fishkill, New York. System design facilities and sales and marketing are located in Bellevue, Washington. For additional information, please visit www.emagin.com.