DISPLAYTECH ANNOUNCES NEW THIRD-PARTY PARTNER IN TAIWAN AND MAJOR CAMCORDER DESIGN WIN

Announcements Support Company Success Strategy of High-Volume Focus

ORLANDO, Fla., February 24, 2002 - Displaytech Inc., the leading manufacturer of ferroelectric liquid crystal (FLC) microdisplays, announced today at PMA that Macronix International Co. Ltd. (MXIC) of Taiwan is producing a 4 mega pixel multimedia camera controller with a dedicated interface to the Displaytech LightView QVGA display module. Displaytech also announced a product design win with a major Japanese consumer electronics manufacturer to provide microdisplays for digital camcorder viewfinders.

Displaytech is providing total systems solutions in conjunction with third-party players that have access to existing, local digital still camera and camcorder manufacturers. This strategy will allow Displaytech to capture digital still camera market share in the growing Taiwanese market, known for specializing in system integration. Displaytech's active third-party program, unique in the industry, affords customers faster time-to-market for their consumer electronics products by providing integrated solutions - optics and electronics designed specifically to work with Displaytech microdisplays. Working closely with third-party players, such as MXIC in Taiwan, is a key strategy for Displaytech to expand its presence in the near-eye microdisplay market.

"We are extremely excited about this new offering from MXIC - our first partner in Taiwan - and look forward to additional joint development programs in the coming months," said David Skaare, director of sales and technical support at Displaytech. "The application of electronic viewfinders, such as those provided by Displaytech, in the camcorder and digital still camera industries enables the delivery of enhanced camera features, and Displaytech is uniquely poised to lead the industry with its superior product offering and strong third-party programs."

The MXIC camera controller, the MX8861, is a highly integrated system designed for digital still cameras with resolutions from CIF up to 4 mega pixels. By embedding a high-performance hardware image processor, a 32-bit RISC processor, and many flexible and programmable functional units, the MX8861 can capture high-resolution still pictures in high-speed and video clips up to 30 frames per second with synchronized audio support in both record and playback modes.

Displaytech's LightView QVGA Display Module features outstanding image quality in a small, lightweight package. With a resolution of 320x240 pixels, 24-bit color and a display diagonal of 0.19 inch, this smaller-than-a-postage-stamp display enables OEMs to produce innovative product designs with outstanding optical clarity in the viewfinder. In addition, the inherent low power consumption of the patented FLC microdisplays extends the battery life of digital still camera and camcorder designs.

Displaytech also announced a product design win with a major Japanese consumer electronics manufacturer, providing microdisplays for digital camcorder viewfinders. This design win underscores the success of Displaytech's strategy of targeting high volume consumer electronic applications. This is a significant design win for the company, showing that the momentum created by successful early adoptions of microdisplays for digital cameras and camcorders is establishing Displaytech as a leader in the consumer electronics marketplace. Displaytech currently provides microdisplays to Concord Camera for two digital still camera models, and to Minolta for its DiMAGE 5 and award-winning DiMAGE 7 digital still cameras.

About Displaytech

Longmont, Colo.-based Displaytech Inc. makes and sells microdisplays with superior image quality to performance-driven consumer electronics companies, providing sustainable competitive advantages to their digital still cameras, camcorders, business projectors, projection TVs and mobile communication devices. Displaytech offers high-quality, patented, ferroelectric liquid crystal (FLC) display products through its LightView and LightCaster® product lines, which use less power and have smaller form factors, allowing for product design innovation and meeting tough manufacturing demands. Established partnerships with industry-leading manufacturers also position Displaytech to keep pace with the challenges of the high-volume consumer electronics market. For more information visit www.displaytech.com.

About Macronix International Co. Ltd.

Since its inception in December 1989, Macronix has been a leading provider of innovative customer/application drive non-volatile memory requiring state-of-the-art technology. In addition, the company will direct efforts to become customer/application driven system solution by mixing Flash/DRAM technologies with digital/analog function blocks for computing, communication, and consumer markets. In the past twelve years, Macronix has recognized and established remarkable world-class first tier accounts in Japan, United States, Europe and Asia Pacific. The efforts requested famous names such as HP, Minolta, Mitsubishi, Nintendo, Palm, Philips, Samsung, Sony, Thomson and Yamahaetc.

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LightView is a trademark of Displaytech Inc.

CONTACT:

Steve Reinhard Displaytech, Inc. Phone: 303-772-2191 stever@displaytech.com