eMagin Grants Stock Compensation Awards for New Employees

Business Wire, July 29, 2005

REDMOND, Wash. -- eMagin Corporation (AMEX:EMA) announced today that its Board of Directors approved the issuance of inducement option compensation awards to new employees of eMagin, in accordance with American Stock Exchange requirement 711, and as part of the Company's standard practice of including stock options as part of new employee compensation. Options were granted for the following 27 employees who commenced employment between December 20, 2004 and July 29, 2005 to purchase an aggregate total of 2,298,000 shares, vesting over five years at a per share exercise price of $1.21: Joe Bednarsky, Dennis Bender, Timothy Braun, Susan Brownell, Ali Faraset, Frank Fino, Philip Gerson, Amal Ghosh, Ed He, Seonhui Kaye, Robert Loyal, Therese McDonnell, Tony Mactutis, Dr. Prafulla Masalkar, Karen Parker, Andy Pruszkowski, Bruce Ridley, Kelly Rigby, Ryan Rosenberg, Ming Shi, Steve Spang, Leslee Stockton, Laurie Sziklas, Fridrich Vazan, Bruce Westcoat, Bo Yuan and Scott Ziesmer.

About eMagin Corporation

A leader in virtual imaging technology, eMagin integrates high-resolution OLED microdisplays, magnifying optics, and systems technologies to create a virtual image that appears comparable to that of a computer monitor or a large-screen television. With unique technology for producing high-performance small molecule OLED-on-silicon microdisplays and related optical systems, eMagin is the only company to supply these displays in commercial quantities to OEMs. In addition, the company sells integrated modules to military, industrial and medical customers, and has recently commercialized its first consumer system, the Z800 3DVisor. eMagin's microdisplay operations are co-located with IBM on its campus in East Fishkill, N.Y. Optics and system design facilities are located in Redmond, Wash. For additional information, please visit www.emagin.com and www.3dvisor.com.