Microvision Extends Market Footprint of the Nomad System into Eastern U.S. Region

Business Wire, Feb 1, 2005

NEW ORLEANS -- From the National Automobile Dealers Association (NADA) Convention and Exposition, Microvision Inc. (Nasdaq:MVIS), announced today the addition of five automobile dealers in the Eastern United States to its Reference Account Program for the Nomad Expert Technician System. The five new dealerships are: Steve Rayman Chrysler/Jeep, Atlanta, GA; Majestic Honda, West Warwick, RI; Burns Honda, Marlton, NJ; Russell BMW, Baltimore, MD and Atlantic Chevrolet/Cadillac, Bay Shore, NY, one of the top ranked dealerships in the U.S. according to Wards Dealer 500. In total, these dealerships employ approximately 100 service technicians.

As Nomad Reference Accounts, these dealers will serve as regional reference points for the Atlanta, Baltimore-Washington, D.C., Philadelphia, New York City-Northern New Jersey-Connecticut, and Boston-Rhode Island metropolitan areas. The local references are expected to help Microvision to further penetrate these major markets that account for approximately 20% of all new car sales in the U.S.

Regional reference accounts give prospective Nomad customers the ability to speak with Nomad users in their local markets and visit the actual installation, if desired. Reference Account Program participants have agreed to share their experiences with the Nomad System with the media. As a result of the Reference Program, the Nomad System has recently been highlighted by the Associated Press, NBC and ABC News affiliates, and numerous automotive trade and technology publications.

Microvision recently passed another milestone, having installed the Nomad Expert Technician System at more than 50 customer locations across a broad cross-section of major automotive brands, including Honda, Acura, Chevrolet, Ford, Toyota, Lexus, Chrysler, Jeep, Volvo and BMW and in all regions of the U.S.

"Our reference account strategy is to sign major dealers in significant markets in order to form a solid foothold in the area," stated Tom Sanko, Microvision's VP of Marketing. "Interest in the Nomad product is growing across the country and these key dealerships are clearly innovators and leaders in their regional markets. They understand that the Nomad System can significantly improve their bottom line profits. The positive reception and enthusiastic feedback we are receiving from these first 50 installations as well as at the NADA conference are helping to create momentum for us as we create broad market awareness and demand for the Nomad System."

According to the National Automobile Dealers Association (NADA), total dealership revenue reached $699.2 billion in 2003. Service and parts departments contributed 46% of total operating profits at the average dealership. Sales of tools and equipment used to repair and maintain motor vehicles in the United States totaled $7.79 billion in 2003.

There were 25,897 separate new car dealer franchises listed in the 1997 U.S. Economic Census. Worldwide there are an estimated 73,000 new car dealerships, 3,200 heavy truck dealers, 448,000 repair shops, and 48,000 tire dealers. In total these enterprises employ more than 1.37 million technicians, with 264,200 technicians employed in the U.S. by new car dealers.

The Nomad Expert Technician System is the world's first wearable, wireless computer with a head-worn, see-through display, providing automotive technicians and service advisors with hands-free access to online vehicle history, repair information and DMS information while they work on vehicles or consult with customers. Service personnel can provide faster, more accurate service and repairs with critical information superimposed on their vision as they work.

About Microvision: www.microvision.com

Headquartered in Bothell, Wash., Microvision Inc. is the world leader in the development of high-resolution displays and imaging systems based on the company's proprietary silicon micro-mirror technology. The company's technology has applications in a broad range of military, medical, industrial, professional and consumer products.

Forward-Looking Statements

Certain statements contained in this release, including those relating to market opportunity, future sales and those which use "expect," "believe," and other similar words, are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the company's forward-looking statements include the following: market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to successfully develop our technology for use in the medical applications in the timeframes contemplated by the Agreement with Ethicon Endo-Surgery; our ability to keep up with rapid technological change; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain additional contract awards and to develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products; and other risk factors identified from time to time in the company's SEC reports, including in its Annual Report on 10-K for the year ended December 31, 2003, and its Quarterly Reports on Form 10-Q.