Microvision Announces 2007 Results and 2008 Business Priorities

Business Wire, March 6, 2008

Company Hits Key 2007 Milestones, Focuses on Product Introduction in 2008

REDMOND, Wash. -- Microvision, Inc. (Nasdaq:MVIS), a global leader in light scanning technologies, today reported operating and financial results for the fourth quarter and fiscal year of 2007 and announced its 2008 business priorities.

"2007 was a very productive and rewarding year for Microvision as we continued to position ourselves for future growth, particularly with high volume consumer and automotive products based on our PicoP[TM] display engine, an ultra miniature projection module which can produce full color, high-resolution images and is small and low power enough to be embedded directly into a mobile device," stated Alexander Tokman, President and CEO.

"Our tremendous progress during 2007 culminated in the unveiling at the 2008 Consumer Electronics Show (CES) of our accessory projector prototype named SHOW[TM] - a PDA-sized, fully functional, self-contained, battery operated, full-color laser projector for use with mobile electronic devices.

"The momentum continued at the 2008 GSMA Mobile World Congress, the world's largest mobile communications conference, where PicoP enabled demonstrators were showcased by several existing and potential partners to mobile operators, content providers and other customers. We believe that these successful demonstrations to global original equipment manufacturers (OEMs), mobile carriers and development partners advanced their interest in bringing the PicoP technology to market.

"During the remainder of 2008, we intend to complete the necessary technology, business development, and supply chain milestones required to bring the first PicoP enabled consumer product to market."

2007 Operating Results

"I am happy to report that in 2007 we made outstanding progress in all of our focus areas, while carefully managing our operating expenses," continued Tokman. We also retired outstanding debt and raised over $34 million through the call of our publicly traded warrants without additional dilution to our shareholders."

Highlights for 2007 and early 2008 include:

PicoP Projector Displays

* Successfully unveiled at the 2008 CES, the SHOW[TM] prototype, a PDA-sized, fully self-contained, battery operated, full-color laser projector intended for mobile device applications.

* Signed an agreement with Motorola to develop pico projector display solutions for mobile applications using Microvision's PicoP display engine.

* Signed a development contract with one of the world's leading consumer electronics companies to evaluate Microvision's advanced pico projector prototype displays for use with a variety of mobile devices, including mobile phones, laptops, personal media players and digital cameras.

PicoP Vehicle Displays

* Delivered the first advanced PicoP-based projection module for an Automotive Head Up Display (HUD) to Visteon, a Tier 1 automotive partner.

* Signed development contracts with two additional global Tier 1 integrators in Europe and Asia to develop a variety of PicoP based display applications for the automotive industry including improved instrument and entertainment displays and automotive HUD.

PicoP Wearable Displays

* Delivered per contract a demonstrator unit of an innovative eyewear optical system to the U.S. Air Force.

* Awarded a $3.2 million contract from the U.S. Air Force to provide a lightweight, see-through, full-color eyewear display prototype.

PicoP Platform Technology and Supply Chain

* Based on customer feedback, developed new wide-angle platform scanner that better meets mobile applications usage models.

* Improved PicoP image quality and validated the improvements through customer feedback and direct user studies.

* Signed an agreement with a large Asian, high volume consumer electronics integrator to manufacture fully functional stand-alone projector prototypes to support Microvision's go-to-market strategy.

* Accelerated progress with leading ASIC development partners to reduce the size, power consumption and cost of the PicoP enabled displays.

* Successfully integrated green lasers from three leading laser suppliers into the PicoP display engine.

Bar Code Scanners

* Released ROV[TM], a new laser based bar code scanner incorporating Microvision's core MEMS scanning mirror technology. The ROV Scanner was developed for use with mobile applications to provide simple and affordable "point of scan" capability.

Industry Awards and Recognition

* Received 2007 North American Frost & Sullivan Award for Technology Innovation for business and design advancements of a bi-directional MEMS scanning mirror, a key component of the company's PicoP display engine.

* Named one of the Top 20 electronics companies worldwide by IEEE Spectrum in patent pipeline power for 2006.

Financial Results

For the year ended December 31, 2007, the company reported revenue of $10.5 million compared to $7.0 million for the same period in 2006 and $3.0 million for the three months ended December 31, 2007 compared to $1.8 million for the same period in 2006. As of December 31, 2007, the backlog totaled $4.1 million compared to $7.1 million at December 31, 2006.