eMagin Enters into Agreements to Raise $9.1 Million in Private Placement

eMagin Corporation (AMEX: EMA), a leader in virtual
imaging technology, has entered into definitive agreements with new
and existing institutional and other accredited investors for the
purchase of approximately $9.14 million of common stock and warrants
The net proceeds from the financing will be used to provide working
capital.
   Under the agreements, investors agreed to purchase 16,623,636
shares of common stock at a price of $0.55 per share and warrants to
purchase up to 6,649,455 shares of common stock at an exercise price
of $1.00 per share exercisable after seven months and expiring October
20, 2010. The investors will also receive warrants to purchase up to
3,324,727 shares at an exercise price of $1.00 per share exercisable
after March 31, 2007, and expiring October 20, 2010, but these
warrants will be canceled if the Company's net revenue for fiscal year
2006 exceeds $20 million or if the investor has sold more than 25% of
the shares purchased under the securities purchase agreement.
   Additional details regarding the private placement are provided on
Form 8-K which is being filed today. Representing the company in this
transaction was Sichenzia Ross Friedman Ference, LLP.
   The shares and warrants will be issued in a private placement
under regulation D of the Securities Act of 1933, as amended. The
company will file a registration statement covering the resale of the
common stock and underlying warrants purchased by these investors
after closing. This press release does not constitute an offer to
sell, or the solicitation of an offer to buy, any securities, nor
shall there be any sale of the securities in any jurisdiction in which
such offering would be unlawful.

   About eMagin Corporation

   A leader in OLED microdisplay and virtual imaging technologies,
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. eMagin's OLED displays have broad market reach and are
incorporated into a variety of near-to-eye imaging products by
military, industrial, medical and consumer OEMs who choose eMagin's
award-winning technology as a core component for their solutions.
eMagin has recently introduced its first direct-to-consumer system,
the Z800 3DVisor, which provides superb 3D stereovision and
headtracking for PC gaming, training and simulation, and business
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. A sales office is located in Tokyo, Japan. For
additional information, please visit www.emagin.com and
www.3dvisor.com.

   Forward Looking Statements

   This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, including those regarding
eMagin Corporation and its subsidiaries' expectations, intentions,
strategies and beliefs pertaining to future events or future financial
performance. All statements contained herein are based upon
information available to eMagin's management as of the date hereof,
and actual results may vary based upon future events, both within and
without eMagin management's control. In some cases, you can identify
forward-looking statements by terminology such as "may," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," the negative of such terms, or
other comparable terminology. These statements are only predictions.
Actual events or results may differ materially from those in the
forward-looking statements as a result of various important factors,
including those described in the Company's most recent filings with
the SEC. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, such statements should not
be regarded as a representation by the Company, or any other person,
that such forward-looking statements will be achieved. The business
and operations of the Company are subject to substantial risks which
increase the uncertainty inherent in forward-looking statements. We
undertake no duty to update any of the forward-looking statements,
whether as a result of new information, future events or otherwise. In
light of the foregoing, readers are cautioned not to place undue
reliance on such forward-looking statements.

   Note: eMagin and 3DVisor are trademarks of eMagin Corporation.