Microvision, Saab and Ericsson Saab Avionics announce commercial development agreement; Virtual Retinal Display technology to be used in helmet-mounted displays

Business Wire, May 22, 1997

SEATTLE--(BUSINESS WIRE)--May 22, 1997--Microvision Inc. (NASDAQ:MVIS) (NASDAQ:MVISW) today announced that it has entered into an agreement with Saab AB, in collaboration with Ericsson Saab Avionics AB.

The Future Products & Technology Division of Saab and the Ericsson Saab Avionics company will cooperate to explore the possibilities of advanced visual display systems incorporating Microvision's Virtual Retinal Display(TM) (VRD(TM)) technology.

Under the terms of the agreement, Microvision will initially develop high-resolution helmet-mounted display technology demonstrators for use in an advanced aircraft simulation system. The demonstrators will be designed to serve as basic multi-use platforms that can be modified or extended to meet the needs of a variety of potential future products.

Saab and Ericsson Saab Avionics will also work with Microvision to investigate commercial development of VRD technology in military aircraft and vehicles, weapons sighting systems and ground troop training. The parties have also agreed to jointly explore the development of other wearable or portable devices containing Microvision's proprietary display technology that may target a wide variety of applications in defense and aerospace, as well as industrial and commercial markets.

Ericsson Saab Avionics will contribute to the collaboration its knowledge and expertise in the area of electronic cockpit display systems and head-mounted displays for military and commercial applications. Ericsson Saab Avionics will further draw on its parent company's broad experience in military and commercial markets for telecommunications and other computing devices.

The initial phase of the contract is scheduled for completion in October 1997 with delivery of the prototype systems.

Rick Rutkowski, president and CEO of Microvision, said, "We are delighted with this outcome. Our interactions with Saab and Ericsson Saab to date, give us the confidence that there is the potential for a truly productive partnering arrangement going forward. All the ingredients are here: Shared vision, impressive technical capabilities and a focus on delivering meaningful technology and products to customers."

Dan Jangblad, head of the Future Products & Technology Division of Saab, said, "We look forward to a rewarding collaboration with Ericsson Saab Avionics and Microvision in investigating this interesting technology. The agreement underlines the intent of Saab to strengthen its front-line position as a developer of advanced aircraft with efficient, user-friendly pilot environments."

Micael Johansson, general manager of the Display and Reconnaissance Systems Division at Ericsson Saab Avionics, said, "We certainly look forward to working with Microvision on one of the most interesting and promising new technologies that exist today for a head-mounted display device. Concurrently with initial trials in a simulator environment, we will work with Microvision to explore the market opportunities for this technology for both military and commercial applications to help bridge the gap between man and machine."

About the companies

Microvision, based in Seattle, Washington, is developing and commercializing its VRD technology, which allows electronically generated images and information to be projected onto the retina of the viewer's eye. The VRD scans a low power beam of light to "paint" rows of pixels onto the eye, creating a high resolution, full-motion image without the use of electronic screens of any kind. The company's objective is to be a leading provider of personal display products and imaging technology in a broad range of military, professional and consumer applications. For additional information, find the company's website at http://www.mvis.com .

Saab AB, based in Linkoping, Sweden, is the parent company in the Saab Group, which is active in advanced high technology products for aerospace and defense. The group also includes Saab Combitech, with operations in commercial high technology niches.

Saab produces the Gripen advanced multi-role fighter aircraft, the first of the fourth generation military fighter to enter service, and the Saab 340 and Saab 2000 commercial aircraft. Other products are guided missile systems and military training equipment. Among the company's non-military products are automatic road toll systems.

The Saab Group employs 8,300 people, and Group sales in 1996 were US $1.1 billion.

Ericsson Saab Avionics is jointly owned by Saab and Ericsson. The primary operations include display, reconnaissance, electronic warfare and IFF systems, advanced electronics and mechanics, and electromagnetic technology. Several of the company's products are implemented in the Swedish Gripen fighter.

Ericsson's 90,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson the world-leading supplier in telecommunications.

The information set forth in this release includes "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. Certain factors that realistically could cause results to differ materially from those projected in the company's forward-looking statements are set forth in the company's 10-QSB for the quarter ended September 30, 1996 and the company's 10-KSB reports for the year ended December 31, 1996, as filed with the Securities and Exchange Commission. -0-