UDC Wins $1 Million DARPA Program To Develop Flexible OLED Display

Business Wire, June 22, 2000

Business Editors/High Tech Writers

EWING, N.J.--(BUSINESS WIRE)--June 22, 2000

Universal Display Corporation (UDC) (NASDAQ:PANL; PHLX:PNL), developer of flat panel display technologies, announced today that it has been awarded a $1 million, 18-month, Phase 1 Program by the Defense Advanced Research Projects Agency (DARPA) under its new Flexible Display Program.

The contract is to develop a flexible organic light emitting device (OLED) flat panel display. OLED technology, widely considered the platform of choice for future lines of flat panel displays, can be used to make displays that are flexible and capable of bending and varying their shape for different environments. DARPA is funding $500,000 and the remaining $500,000 is cost share from the participants.

Under the contract agreement, UDC will deliver flexible OLED (FOLED) displays in 1/4 VGA format - both transparent and opaque - that will be used to demonstrate the effectiveness of flexible displays in military applications. Flexible displays are believed to offer several key advantages for military use because they are lighter, thinner, portable, and more rugged than current, non-flexible displays. UDC will also provide DARPA with research findings relating to its development of active matrix OLEDs.

"Flexible flat panel displays offer tremendous benefits to military and commercial markets," says Steven V. Abramson, President of UDC. "By making displays flexible, manufacturers can conceivably develop products that bend, wrap around another object, or roll up when not in use. The applications for military and consumer uses are then boundless."

Abramson points to several examples of how such technology may transform the Armed Services: FOLED displays on helmet-mounted faceshields that identify enemy positions; electronic devices that attach by Velcro to one's sleeve or fold up and fit into a vest pocket to provide mission-critical field data and pens that house roll-out displays with timely tactical data.

UDC's Program Team includes its long-standing partners at Princeton University and the University of Southern California, as well as new, strategic partners, Battelle Memorial Institute, of Columbus, Ohio and L-3 Communications Display Systems, of Alpharetta, Georgia. UDC has a fundamental proprietary position in flexible, high efficiency, small molecule OLED displays, and has worked with Princeton and USC since 1994 in developing OLED technologies. Battelle has developed a barrier layer technology which may accelerate the fabrication of long-lived flexible displays. L-3 Communications has been characterizing, assembling and delivering advanced technology systems to military markets for decades. All four organizations will be involved in the DARPA initiative with project direction and management based at UDC.

Battelle develops and commercializes technology for industry and government. It serves clients at more than 70 locations throughout the U.S. and the world. L-3 Communications Display Systems, a division of L-3 Communications Corporation, specializes in the design, development, and manufacture of ruggedized display systems for highly demanding applications. L-3's product line includes active matrix liquid crystal flat panel displays, cathode ray tube displays and display processor electronics.

UDC currently has 26 patents relating to OLED technology and has the ability to make displays flexible, lighter-weight, brighter and more adaptable to various climates and conditions than other flat panel technology. OLED-based displays are believed to cost less and take less time to manufacture. They are seen by many as the natural replacement for Cathode Ray Tubes (CRTs) and Liquid Crystal Displays (LCDs), which are limited by their lack of portability and clarity.

UDC is located 20 minutes away from the Company's research partners at Princeton University. The company recently moved into a new 11,000 sq. ft facility which includes a pilot production line as well as technology development and technology transfer facilities.

Editor's Notes:

Scientific and business interviews may be scheduled with UDC officers and scientific authorities by contacting Phil Dunne at (312) 541-8787 or pdunne@minkus-dunne.com.

UDC's website is www.universaldisplay.com

All statements in this news release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially for Universal Display Corporation from those projected, including, but not limited to, uncertainties relating to technological approaches, product development, manufacturing, and marketing acceptance, uncertainties related to cost and pricing of Universal Display products, dependence on collaborative partners, and other competition, risks relating to intellectual property of others and the uncertainties of patent protection. These are discussed in periodic reports filed with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 1999 and quarterly report on Form 10-Q. Universal Display Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Universal Display Corporation's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.