eMagin Upgrades Guidance; Extends Utility of Z800 3DVisor™ With New Software

Business Wire, July 10, 2007

BELLEVUE, Wash. -- eMagin Corporation (OTC:EMAN) has revised its guidance upward for the second quarter and issued guidance for the full fiscal year. The company now projects revenues of $4.2 million for the second quarter and estimates annual revenues of more than $16 million. At the same time, the company has issued new software that will enable users of its Z800 3DVisor to save application-specific settings and even create a virtual desktop that accommodates multiple windows.

Three new applications are available to all Z800 3DVisor owners:

* Z800 Setup Wizard, a robust setup utility, which lets users save their optimal 3DVisor settings for stereovision, headtracking and other features, such as color, position, image quality, and the unit's screen saver

* 3D Launcher Utility, a program launch platform that lets users save preference settings for each simulation or game and provides a one-button launch that automatically activates the saved resolution and stereovision settings and headtracking configuration

* XtendDesk (TM) beta, a software tool that lets users define a virtual desktop equivalent to a 15 x 15 ft display, which will accommodate a number of open application windows accessible through the Z800 3DVisor's headtracking function or one or more large scrollable application windows, such as spreadsheets, graphic illustration or photographic editing applications

All three applications are available for download at www.3dvisor.com.

eMagin is also offering registered developers new Z800 Lab Tool software, which provides test and configuration functions, enabling them to fine tune color, brightness, image quality, and image positioning on each display, as well as controlling the Z800 3DVisor's mouse emulation sensitivity and other features.

"Our new software offerings extend the Z800 3DVisor's utility for virtual imaging applications for business, entertainment, and training and simulation," said Susan Jones, eMagin's executive vice president and chief marketing and strategy officer. "In addition, we've incorporated microdisplays based on our new OLED-XL(TM) technology into the system, providing higher brightness and longer lifetime."

Jones added, "The improved performance provided by our OLED-XL technology also contributed to higher than projected revenues for the second quarter, due to increased sales of OLED microdisplay components for a wide range of applications."

eMagin will hold a conference call on August 7, 2007, at 5:00 P.M. EDT to discuss the second quarter financial results in detail.

About eMagin Corporation

A leader in OLED microdisplay technology and personal display systems, eMagin integrates high-resolution OLED microdisplays with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs. The company's own Z800 3DVisor provides 3D stereovision and headtracking for PC gaming, training and simulation, immersion therapy, and other applications. eMagin's microdisplay manufacturing and R&D operations are co-located with IBM on its campus in East Fishkill, New York. System design facilities and sales and marketing are located in Bellevue, Washington. For more information on eMagin, visit www.emagin.com.