eMagin and V3i Sign Major Purchase & Distribution Agreement for 3D OLED Display Products in Asia; Initial Order Exceeds $1 mill

eMagin Corporation (AMEX: EMA), a leader in OLED
microdisplays and personal display systems, and Vision 3 International
(V3i), Ltd., a Korea-based leader in stereo imaging technologies,
announce that they have signed a Supply and Purchase Agreement. eMagin
expects to fulfill this initial $1.1 million order over the next four
months. Additional follow-on options for larger future sales have also
been agreed to.
   Under terms of the agreement, V3i will be the exclusive
distributor of eMagin's Z800 3DVisor(tm) for PCs in South Korea
through July 2007. eMagin will also provide a special NTSC
video-enabled version of the Z800 3DVisor for V3i, and V3i will have
exclusive distribution rights for the customized products in South
Korea, China, Taiwan, Hong Kong, Singapore, and Malaysia. In addition,
V3i will bundle the 3DVisors with V3i's nOOn(tm) stereovision cameras,
which will also be provided to eMagin to sell in other markets
beginning in September. V3i will provide eMagin's Z800 3DVisors(tm)
for applications including stereoscopic 3D DVD theaters, PC game rooms
and combined with stereoscopic 3D camera systems.
   "The market for 3D imaging will grow as more content becomes
available and the ability to create and view that content also becomes
more readily available," said Dr. Yong Bum Lee, president, Vision 3
International. "Our projections indicate V3i's potential sales of
eMagin 3DVisor products to be in excess of 10,000 units in 2007 in our
markets. We share eMagin's vision and commitment to capturing that
market with products and services that enable 3D viewing and
entertainment."
   "The applications for 3D - gaming, video, simulation, and training
- are developing as the amount of available content expands," said
Susan Jones, executive vice president and chief marketing officer,
eMagin Corporation. "V3i makes an ideal partner, because we have
complementary products and a mutual goal of growing the stereovision
3D market. The 3Vi focus is on not only growing that content but
enabling anyone to create personal 3D content."
   eMagin's Z800 3DVisor delivers a clear, flicker-free,
high-contrast virtual images equivalent to a 105-inch screen viewed at
twelve feet, in full-color stereovision. It provides full 3D
stereovision or outstanding 2D, depending on its source material. The
Z800's high-speed 360-degree headtracking lets users look around in
the virtual world just as they would in the real world, when connected
to a PC with any of about 1000 PC game titles in the market.
Completing the experience is a communications capability with
integrated, audio system with stereo earbuds and a noise-canceling
microphone. To power all these capabilities, the Z800 requires only a
standard USB port and can greatly extend a laptop's battery life when
it's used instead of the standard LCD laptop screen. When connected to
the NTSC adapter provided with the new special version of the Z800
3DVisor, the Z800 3DVisor will provide the same large view video
images from standard DVD video, stereovision cameras, or other video
data sources.

   About Vision 3 International

   Founded in 2005, V3i has focused on leading the general adoption
of stereo imaging through its stereo camera products and services and
through on-going research and development in stereo imaging capture,
processing, and viewing. The company's goal is the broad acceptance
and use of stereo imaging and stereo camera products. The company
produces 3D camera modules, develops and provides 3D image processing
software, and provides 3D content focused on reality picture.

   About eMagin Corporation

   A leader in personal display systems, eMagin manufactures and
integrates high-resolution OLED microdisplays, magnifying optics, and
systems technologies to create a virtual image comparable to that of a
large computer monitor or a large-screen television. eMagin's OLED
displays have been incorporated into a variety of near-eye imaging
products for military, industrial, medical, and consumer markets that
choose eMagin's award-winning technology as a core component for their
solutions. eMagin's first personal display system, the Z800 3DVisor,
provides superb 3D stereovision and headtracking for PC gaming,
training and simulation, and other applications. It won the CEA's
Innovation of Year award in the digital display category and won
additional recognition in the electronic gaming category. 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.

   Note: eMagin, 3DVisor, and Z800 are trademarks of eMagin
Corporation.

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