eMagin Corporation Named to Russell 3000 Index; Virtual Imaging Solutions Leader Added to Influential Market Index

Business Wire, June 27, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--June 27, 2000

eMagin Corporation (Amex:EMA), a leading developer of microdisplays and virtual imaging technology, today announced that it will be included in the Russell 3000(R) Equity Index, an index composed of the 3,000 largest U.S. stocks as measured by market capitalization.

"Our capitalization that resulted in our inclusion in the Russell 3000 Equity Index just four months after entering the public market attests to the strong confidence investors have in our prospects," said Gary Jones, president and CEO of eMagin. "Our patented microdisplays and optical systems are being developed to meet the expanding needs of our customers and strategic partners. Our goal is to become the global leader in virtual imaging technology."

Inclusion in the Russell 3000 Equity Index will provide additional market exposure for eMagin shares because some mutual funds and institutional investors seek to create portfolios that mirror the index. The index provides objective benchmarks for the U.S. stock market, reliably measuring the broad market without subjective opinion or committee, and thus is widely used as a standard for investment strategies. The addition of eMagin Corporation is part of the annual reconstruction of the Russell indices and is effective July 1, 2000.

eMagin's microdisplays provide a flat-panel image that can be easily combined with near-eye optical systems to create large screen virtual images of data or video with the apparent size of a regular desktop computer monitor.

eMagin recently unveiled the world's first organic light emitting diode (OLED)-on-silicon microdisplay, which featured over 1.3 million tiny 12 micron-sized pixels in an area smaller than a postage stamp, demonstrating real time video with 256 gray shades at less than 400 mW, with a brightness of 200 cd/m2.

eMagin plans to work with original equipment manufacturer (OEM) suppliers, as well as its wholly owned subsidiary Virtual Vision Inc. to integrate microdisplays and optics into products such as wearable computers, camera/camcorder viewfinders, wireless Internet devices and mobile phones, and other emerging applications.

eMagin recently announced efforts with IBM, Eastman Kodak, and Covion to augment its efforts to commercialize OLED microdisplay technology.

eMagin Corporation became a public company on March 17, 2000. The company's largest shareholders include Citigroup, Eastman Kodak, Exeter Capital Group, Montgomery Asset Management, Scudder Kemper Investments Inc., Techalpha LLC, Telxon Corporation and Verus International Ltd.

About the Russell Indices

Membership in Russell's 21 U.S. equity indexes -- widely used as benchmarks for both passive and active investment strategies -- is determined by market capitalization rankings and style attributes, rather than by subjective opinion or committee decisions. This ability to more accurately reflect market reality is one reason why Russell's benchmarks are widely used to evaluate investment managers.

Annual reconstitution of the Russell indexes captures the 3,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization to create the Russell 3000(R) Index. Updated index reconstitution lists are available at http://www.russell.com.

About Frank Russell Company

Frank Russell Company, one of the world's leading investment management and advisory firms, provides investment advice, analytic tools and funds to institutional and individual investors in 35 countries. Russell's investment management business employs a manager-of-managers approach with $60 billion in assets under management.

The company has retainer-consulting relationships with clients representing more than US$1 trillion worldwide. Frank Russell became a subsidiary of The Northwestern Mutual Life Insurance Company in January 1999. Founded in 1936, Russell is headquartered in Tacoma, Wash., and has offices in New York, Toronto, London, Paris, Sydney, Auckland, Singapore and Tokyo.

About eMagin Corporation

A leading developer of virtual imaging technology, eMagin combines integrated circuits, microdisplays, and optics to create a virtual image equivalent to the real image of a computer monitor or large screen TV.

These miniature, high-performance, virtual imaging modules provide access to information-rich text, data, and video, which can facilitate the opening of new mass markets for wearable PCs, wireless Internet appliances and mobile phones, portable DVD-viewers, digital cameras, and other emerging applications.

eMagin's microdisplays are based on fundamental OLED (organic light emitting diode) technology licensed from Eastman Kodak, leveraged with eMagin's own intellectual property portfolio of more than 100 patents issued or pending.

eMagin recently announced OLED technology development agreements with IBM and Covion. eMagin's corporate headquarters and microdisplay operations are co-located with IBM on its campus in East Fishkill, N.Y. Wearable and mobile computer headset/viewer system design and full-custom microdisplay system facilities are located at its wholly owned subsidiary, Virtual Vision Inc., in Redmond, Wash. The company has sales and marketing offices in Santa Clara, Calif., and in Japan. Further information about eMagin and its virtual imaging solutions can be accessed at www.emagincorp.com.