Executive Management Changes at eMagin

  
    
  
  
    
      eMagin's (AMEX: EMA) founder, Gary Jones, is leaving his roles of CEO 
      and president, which he has held with the Company for over 15 years, but 
      will continue to serve the Company as a consultant focused on current 
      strategic partnerships and M&A opportunities. Dr. K.C. Park, executive 
      vice president, has been appointed as interim CEO and president.
    
    
      "We believe that the timing for this transition is good," Jones 
      commented. "We've just delivered our highest revenue quarter and year. 
      Preliminary results for the fourth quarter of 2006 show revenues of $2.6 
      million, up over 100% from $1.3 million in 2005. Preliminary full-year 
      revenue for 2006 of $8.2 million reflects growth of 118% from $3.7 
      million in 2005. In addition, we anticipate this growth to continue 
      through the first quarter of 2007 with early projections calling for 
      over $3.5 million in revenue." He went on to note that eMagin's cash 
      position has improved during the past quarter owing to customer 
      prepayments, increased sales and short-term investments with $1.7 
      million in cash on December 31, 2006, but cash remains a significant 
      risk factor for the company and shareholders.
    
    
      Said Jones, "The Board and I appreciate Dr. Park's willingness to accept 
      the responsibility of managing our day-to-day operations so that eMagin 
      can continue moving forward while I focus primarily on our current 
      partnership and M&A efforts. We continue to believe that it is important 
      to accomplish a major partnership or acquisition to realize our growth 
      potential. Despite excellent progress in manufacturing operations and 
      sales, the company's current financial constraints drive this strategy.
    
    
      "It has been a challenging and exciting road for eMagin," he concluded. 
      "We developed award winning OLED display technology and personal display 
      systems, while developing the emerging market for high-performance 
      near-eye virtual imaging. We are now the microdisplay technology and 
      high performance commercial-military near-eye market leader. Our 
      displays have become a key component in many advanced new imaging 
      products."
    
    
      "Gary's vision and leadership in creating eMagin and building a 
      world-class team have resulted in the world's best virtual imaging 
      technology and products," said Rear Admiral Tom Paulsen, USN (Ret.), 
      non-executive chairman of eMagin's Board of Directors. "I’m 
      pleased that Gary has agreed to remain engaged with the management of 
      the company through strategic planning and as chief negotiator in 
      ongoing negotiations with potential strategic partners and acquisition 
      efforts. His decision to focus on eMagin’s 
      current M&A efforts is significant in helping to ensure that this legacy 
      is fruitful. We are very fortunate to have, as part of the team Gary 
      assembled, a leader in the display industry, Dr. K.C. Park, who is 
      eminently qualified to manage the Company's continuing operations."
    
    
      Dr. Park will also serve on eMagin's Board of Directors, from which Mr. 
      Jones is departing. He has served as executive vice president of 
      International Operations since 1998 and as president of eMagin's 
      subsidiary, Virtual Vision, Inc., from 2002 to 2004. Earlier, with LG 
      Electronics as an executive vice president and member of the Board, he 
      built up LG's business in LCDs and PDPs, solidifying their world 
      leadership position in flat-panel display products. At IBM, he managed 
      flat panel display and semiconductor programs at the Watson Research 
      Center; then served as director of Display Technology with worldwide 
      responsibility at the IBM Corporate Headquarters, setting up technical 
      operations in Korea as senior managing director. Dr. Park holds his 
      Ph.D. in Solid-State Chemistry from the University of Minnesota and an 
      MBA from New York University.
    
    
      About eMagin Corporation
    
    
      A leader in OLED microdisplay technology, 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, N.Y. System design facilities 
      and sales and marketing are located in Bellevue, Wash. A sales office is 
      also located in Japan.
    
    
      Forward Looking Statements
    
    
      Statements in this press release which are not historical data are 
      forward-looking statements which involve known and unknown risks, 
      uncertainties or other factors not under the company's control, which 
      may cause actual results, performance or achievements of the company to 
      be materially different from the results, performance or other 
      expectations implied by these forward-looking statements. These factors 
      include, but are not limited to, those detailed in the company's 
      periodic filings with the Securities and Exchange Commission. We 
      undertake no duty to update any of the forward-looking statements, 
      whether as a result of new information, future events or otherwise.