DISPLAYTECH'S FIRST-HALF OF 2001 VERY BRIGHT

Microdisplay Manufacturer Announces High-Volume Manufacturing Milestone, Multiple Customer Wins and Several Third-party Partnerships

Visit Displaytech During SID 2001, June 5 - 7, 2001 San Jose Convention Center, Booth #1042

SAN JOSE, Calif., June 5, 2001 -- Displaytech Inc., the leader in the design, development, manufacturing and marketing of ferroelectric liquid crystal (FLC) microdisplays, today announced at SID that it has experienced unparalleled successes in the first-half of 2001. The company has reached a manufacturing milestone, seen its microdisplays incorporated into a number of new products and has attracted new third-party manufacturing partners.

"Since the company's inception, we have been steadily moving toward high-volume, high-quality manufacturing," said Haviland Wright, Displaytech's CEO and chairman. "With the opening of our second manufacturing facility at Miyota in Japan last year and with the major customer wins so far this year, we have reached a level where we can provide a consistent stream of excellent microdisplays to high-volume OEMs in the camcorder, digital still camera and projection markets."

HIGH-QUALITY, HIGH-VOLUME MANUFACTURING

Within the last six months, Displaytech shipped more than 500,000 microdisplays to OEM customers. This number is comprised of both near-eye displays and projection displays. The company's LightView line of near-eye displays is ideal for applications such as viewfinders for camcorders and digital still cameras, and they are also optimal for use in head-mounted displays and wearable computer technology. The LightCaster® line of projection displays is designed for use in projection products such as HDTVs, computer monitors and business projectors. Samsung Electronics America is already manufacturing Displaytech's LightCaster microdisplays into its new Tantus line of projection FLCD HDTVs, now commercially available.

Displaytech's ability to manufacture and ship displays in these volumes is due in part to the opening of its second-source manufacturing facility at Miyota, a precision-process, high-volume Japanese display manufacturer.

MAJOR CUSTOMER WINS

In association with its manufacturing partner Miyota, Displaytech has begun selling its LightView NTSC Monochrome FLC video display module to the Victor Company of Japan, Ltd. (JVC) for use as a viewfinder in the GR-DLV310U line of camcorders. This arrangement positions Displaytech as a major supplier of viewfinders in the rapidly growing video recorder market, and affirms microdisplays as a desirable alternative to more traditional display options.

Minolta will begin marketing two high-end digital still cameras that feature Displaytech's LightView QVGA displays as viewfinders. The Minolta DiMAGE 7 and DiMAGE 5 are professional quality digital cameras, which will be marketed to consumer-level photographers. Minolta is marketing the microdisplay as its Digital Hyper Viewfinder (EVF). The EVF functions as an information center, showing a full array of shooting information and monitoring effects of image manipulation and control. Both cameras will be available this year.

Concord Camera Corp. is using Displaytech's full-color LightView QVGA display module as a viewfinder in its line of EyeQ™3x digital cameras. This new concept in digital cameras delivers high-quality photography in a low-cost package. Displaytech's ability to supply a high-volume of consistent microdisplays at a reasonable price makes it possible for electronics manufacturers like Concord to produce innovative new products.

WIDENING DISTRIBUTION CHANNELS

Displaytech announced an exclusive distribution agreement with Densitron Technologies, a United Kingdom-based global supplier of industrial electronics and computers. Densitron now exclusively distributes Displaytech's microdisplays in Denmark, Finland, France, Germany, Sweden and the United Kingdom. This agreement positions Displaytech in front of some of Europe's most prodigious electronics manufactures, especially the red-hot cell phone manufacturing industry.

EXPANDING PARTNERSHIPS

Part of Displaytech's overall objective is to enable its customers to choose component sets that best meet their individual requirements. The company's third-party manufacturing program allows customers to choose optics and image processing chips from a number of industry-leading component manufacturers. The most recent additions to the roster of third-party players include the following:

Conexant Systems Inc. is offering a digital still camera reference design package featuring Displaytech's LightView QVGA display module. The package includes Conexant's 1.3-meagpixel CMOS sensor, its Raptor™ II-C advanced digital camera processor and Displaytech's microdisplay.

Zoran Corp. is also offering a digital still camera reference design kit incorporating Displaytech's LightView QVGA display module. Included are Zoran's PixelCam 1.3-megapixel CMOS sensor, its COACH (Camera On A Chip) processing chip and Displaytech's microdisplay.

The entire list of Displaytech third-party partners is available at www.displaytech.com.

View a complete listing of Displaytech press releases, images and photos is available on the company's SID Web site.

About Displaytech

Displaytech, Inc. makes and sells microdisplays with superior image quality for electronic viewfinders in consumer digital still cameras, camcorders, and mobile communication devices. The low power and compact form factor of Displaytech's LightView microdisplay product line enable innovative end-product design. The patented Ferroelectric Liquid Crystal (FLC) technology at the heart of the Company's microdisplays is also used in a line of ultra-fast photonics switching products for emerging optical applications. A fabless manufacturing model positions Displaytech to keep pace with the high-volume consumer electronics market. For more information on all Displaytech products, press releases, and images, visit www.displaytech.com.

LightView is a trademark of Displaytech Inc.

LightView is a trademark, and LightCaster is a U.S. registered trademark of Displaytech Inc. All other products mentioned are trademarked and/or registered by their respective companies.