Microvision Converts $5 Million of Preferred Stock to Common Equity

Business Wire, May 4, 2006

REDMOND, Wash. -- Microvision, Inc. (NASDAQ:MVIS), a leader in light scanning technologies, today announced that the holder of the Company's preferred stock converted its $5 million preferred stock holding issued in September 2004 to common equity. As consideration for the conversion of the preferred stock, the company issued a total of 1,353,066 shares of its common stock. Further details will be available in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

"By completing this transaction we have reduced the outstanding debt of the Company and eliminated the related dividend and redemption requirements of this Preferred Stock," said Alexander Tokman, Microvision's President and CEO. "This conversion is consistent with our goal of simplifying the capital structure of the Company to better align the equity interests of the Company's shareholders."

Microvision has agreed to register the shares of common stock issued as part of this transaction for resale under the Securities Act of 1933, as amended. The securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements.

About Microvision: www.microvision.com.

Headquartered in Redmond, 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 industrial, consumer, military and medical applications.

Forward-Looking Statements Disclaimer

Certain statements contained in this release, including those relating to simplifying the Company's capital structure and product applications 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: our ability to raise additional capital when needed; market acceptance of our technologies and products; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; our dependence on the defense industry and a limited number of government development contracts; 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; the timing of commercial product launches and delays in product development; the ability to achieve key technical milestones in key products; dependence on third parties to develop, manufacture, sell and market our products; potential product liability claims, and other risk factors identified from time to time in the company's SEC reports and other filings, including the Company's Annual Report on Form 10-K filed with the SEC. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or any other reason.