eMagin and ROHM Announce Strategic Investment; ROHM Invests $1 million in eMagin; Companies to Explore Partnering

Business Wire, April 3, 2002

Business & High-Tech Editors

HOPEWELL JUNCTION, N.Y & KYOTO, Japan--(BUSINESS WIRE)--Apr. 3, 2002

eMagin Corporation (AMEX: EMA), the leading developer of organic light emitting diode (OLED) microdisplay technology and ROHM Company LTD, one of the largest Japanese semiconductor and electronic component manufacturers, today announced a strategic investment by ROHM in eMagin Corporation.

ROHM Company LTD is purchasing 1,282,051 shares of eMagin Common Stock at per share as well as warrants to purchase an additional 512,820 shares of Common Stock at a conversion price of $0.85 per share for an investment of US $1,000,000. 00

In conjunction with the investment, ROHM and eMagin have agreed to explore the development of a Partnership Agreement that could potentially include cooperative activities such as working with ROHM exclusively or non-exclusively to outsource manufacturing, design and distribution. In addition, the Companies expect to explore the development of new integrated circuit chips to be incorporated into eMagin's microdisplays for consumer applications such as camera or camcorder viewfinders, and joint product development or other opportunities. Many computer and video electronic system functions can be built directly into the silicon chip under the OLED devices, resulting in very compact, integrated systems with lowered overall system costs relative to alternate technologies.

"eMagin's technology, display products, and its management are well positioned to play a role in several emerging markets for the next generation of virtual imaging," said Hidemi Takasu, a member of ROHM's Board of Directors. "We believe that both of our companies have the opportunity to greatly benefit from this pending partnership. eMagin brings to us an opportunity to help usher in a new era of imaging technology. We have every expectation that eMagin's unique displays with their high resolution, wide view, and high energy efficiency will enhance or enable many new mobile imaging products."

"We are delighted to embark on this relationship with ROHM with their initial investment," said Gary Jones, Chairman, CEO, and President of eMagin. "ROHM is a world class supplier of advanced custom integrated circuits, video processing integrated circuits, and many other electronic components. Our relationship with ROHM should allow us to benefit from their manufacturing strengths to source components that we need to meet the increasing market demand for our OLED microdisplay products. There are multiple opportunities for collaboration toward advancing our technology, production, and global market development and we look forward to a long-term cooperation."

ROHM and eMagin, both licensees of Eastman Kodak's OLED technology, will also consider partnering to advance OLED technology for mutual benefit. Organic light emitting displays, also known as Organic electroluminescent displays (OEL), offer a number of advantages over current liquid crystal microdisplays, including increased brightness, lower power requirements, less weight, wider viewing angles, and overall thin-film, light-weight designs. They are regarded as the optimum display for the next generation of cellular phones, personal entertainment, and other portable electronic devices for consumers.

eMagin, the first company worldwide to commercialize active matrix OLED-on-Silicon microdisplays, is currently providing SVGA resolution microdisplays with 1.53 million picture elements and stereovision-capable SVGA-3D microdisplays with 1.44 million picture elements. ROHM currently mass-produces display devices, such as light emitting diodes (LEDs) and liquid crystal displays (LCDs), and aims to expand its line of display devices to OLED displays in order to meet the needs of consumers.

About eMagin Corporation

A leading developer of virtual imaging technology, eMagin combines integrated circuits, OLED microdisplays, and optics to create a virtual image similar to the real image of a computer monitor or large screen TV. eMagin provides near-eye microdisplays incorporated in products such as viewfinders, digital cameras, video cameras and personal viewers for cell phones as well as headset-application platforms which include mobile devices such as notebook and sub-notebook computers, wearable computers, portable DVD systems, games and other entertainment. eMagin's corporate headquarters and microdisplay operations are co-located with IBM on its Hudson Valley 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, WA. URL: http://www.emagin.com

About ROHM Company LTD

ROHM CO., LTD., is one of the largest Japanese semiconductor manufacturers. Founded in Kyoto, Japan in 1958 with net sales of Yen 409.3 billion ($3.3 billion) in 2001, ROHM develops and produces Integrated Circuits and other electronic components. Its about 15,000 employees in more than 10 countries are active in the areas of Integrated Circuits specifically for cellular phones, for example base-band signal processing LSIs compliant with GSM, CDMA, and PDC standards, mixed-signal LSIs, and other various circuit block such as power management and display-related circuits. ROHM's strength is in the development of Integrated Circuits that precisely meet customer needs. ROHM is listed on Tokyo Stock Exchange. URL: http://www.rohm.co.jp.