Universal Display Corporation Announces DARPA Program Funding for Flexible OLED Displays Increased to $3 Million

Business Wire, June 28, 2001

Business Editors/Hi-Tech Writers

EWING, N.J.--(BUSINESS WIRE)--June 28, 2001

Universal Display Corporation (NASDAQ: PANL; PHLX: PNL), a leading developer of flat panel display technology, announced today that it has been awarded an additional $1.5 million for its existing Defense Advanced Research Projects Agency (DARPA) contract. The total contract now equals approximately $3 Million for the 18 month Program.

The expanded program will focus on further development of UDC's flexible organic light emitting device (FOLED(TM)) flat panel display technology. OLED technology is widely considered to be the future technology of choice for displays because it has the potential to make them flexible and conformable for different product applications. DARPA is funding $1.6 million and the remaining $1.4 million is `cost share' from the participants.

"We're very pleased that our team has received this additional award from DARPA," said Steven V. Abramson, President of UDC. "Flexible flat panel displays can have a tremendous impact on the flat panel market, because of their light weight, conformability and potential for continuous web based manufacturing and provide new products and applications for military and commercial markets."

UDC's Program Team includes its long-standing partners at Princeton University and the University of Southern California, as well as, Vitex Systems, a subsidiary of 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. Vitex/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.

About Universal Display Corporation

Universal Display Corporation is a world leader in developing and commercializing innovative OLED technologies. It is collaborating with a network of world class organizations to penetrate the electronic flat panel display market, including a long-standing relationship for innovative OLED research with Princeton University and the University of Southern California; a joint development agreement with Sony Corporation for OLED television monitors: a strategic relationship for the commercialization and production of proprietary high efficiency OLED materials with PPG, Inc. of Pittsburgh, PA USA; a partnership with Aixtron AG of Aachen Germany for the development and production of the next generation of OLED production equipment using Universal Display Corporation's proprietary organic vapor phase (OVPD) technology: has the sole subcontracting rights to Motorola's OLED patent portfolio. Universal Display Corporation recently announced its invention of what it believes is the first efficient phosphorescent blue OLED. In combination with its existing red and green phosphorescent OLEDS, The Company has established the core of primary colors, a critical step forward in the development of full-color, active matrix OLED displays. Visit Universal Display Corporation on the Web at http://www.universaldisplay.com

Universal Display Corporation is located in the Princeton Crossroads Corporate Center, Ewing, N.J., minutes away from its Research Partner at Princeton University. Its 11,000 sq. ft. facility includes a pilot production line, as well as technology development and technology transfer facilities. With more than 2,500 square feet of clean room space, this state-of-the-art facility has been designed to further technology development, technology transfer to manufacturing partners and work with customers to develop products to meet their needs for electronic flat panel displays.

All statements in this news release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act 0f 1995, 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, statements regarding Universal Display Corporation's beliefs, expectations, hopes or intentions regarding the future. Forward-looking statements in this document also include statements regarding any financial forecasts or market growth predictions. 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. It is important to note that actual outcomes and Universal Display Corporation's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as: uncertainties relating to developments and advances in display technologies, including OLED, TOLED, SOLED and FOLED technology; the expansion of applications for OLED technology; the success of UDC and its development partners in accomplishing technological advances; the ability of Universal Display Corporation to enter into alliances with product manufacturers; 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, 2000 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.