eMagin Tapped for Virtually Better's Stress-Treatment Applications; Virtually Better's 'Virtual Iraq' Ready for Implementations.

BELLEVUE, Wash. & ATLANTA -- eMagin Corporation (AMEX:EMA), a leader in virtual imaging technology, has been selected to provide the imaging device for Virtually Better's custom Virtual Iraq environment.

With funding from the Naval Research Office, Virtually Better designed "Virtual Iraq" to support exposure therapy of anxiety disorders resulting from the high-stress environment. The treatment involves exposing the patient to a virtual environment containing the feared situation rather than taking the patient into the actual environment or having the patient imagine the stimulus. The virtual environment is controlled by the therapist through a computer keyboard ensuring full control of the exposure to the programmed situations. Virtual reality exposure treatment allows the therapist to manipulate situations to best suit the individual patient during a standard therapy hour (usually 45-50 minutes) and within the confines of the therapist's office.

Virtually Better chose to include eMagin's Z800 3DVisor as the medium for delivering the VR exposure. "It delivered the level of immersion we needed for successful treatments," said Ken Graaf, chief executive officer, Virtually Better. "The combination of the OLED displays delivering 3D stereovision and the wide field of view were a natural fit for the simulations we have been developing." Besides "Virtual Iraq," Virtually Better applications currently include Virtual Airplane, Virtual Audiences, Virtual Heights, Virtual Storm, and Virtual Vietnam.

According to Susan Jones, executive vice president and chief marketing officer, eMagin Corporation, "What Virtually Better has achieved in 'exposure therapy' is proving repeatedly to be highly effective and remarkably far-reaching in utility for treatment of phobias and anxieties."

Built on the eMagin's proven OLED technology base, the Z800 3DVisor provides full-color, 360-degree, 3D stereovision through its state-of-the-art head tracking and SVGA 3D OLED microdisplays. With stereo earbuds and a noise-canceling microphone, the Visor enables group training scenarios as well as individual-based training and therapy sessions.

About Virtually Better

Founded in 1996, Virtually Better creates virtual reality environments for use in the treatment of anxiety disorders such as fear of flying, fear of heights, fear of public speaking as well as post-traumatic stress disorder (PTSD). Based in Atlanta, Ga., the Virtually Better has on-site clinic staffed by a team of licensed clinical psychologists devoted to using cognitive-behavioral techniques (including virtual reality exposure therapy) to treat various disorders in both adults and children. Virtually Better grew from the collaborative research of Barbara O. Rothbaum, Ph.D., Associate Professor in Psychiatry, and Director of Trauma and Anxiety Recovery Program at the Emory University School of Medicine in Atlanta, Ga., and Larry F. Hodges, Ph.D., formerly with the Georgia Institute of Technology, and now Professor and Chair, Department of Computer Science, University of North Carolina at Charlotte. The company has continued collaboration with major research universities is allowing Virtually Better to expand its growth into other areas such as speech pathology, addiction, pain distraction, and other immersive environments.

About eMagin Corporation

A leader in OLED microdisplay and virtual imaging technologies, eMagin integrates high-resolution OLED microdisplays, magnifying optics, and systems technologies to create a virtual image that appears comparable to that of a computer monitor or a large-screen television. eMagin's OLED displays have broad market reach and are incorporated into a variety of near-to-eye imaging products by military, industrial, medical and consumer OEMs who choose eMagin's award-winning technology as a core component for their solutions. eMagin has recently introduced its first direct-to-consumer system, the Z800 3DVisor, which provides superb 3D stereovision and headtracking for PC gaming, training and simulation, and business 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. A sales office is located in Tokyo, Japan. For additional information, please visit www.emagin.com and www.3dvisor.com.