International Display Works Announces First Quarter Financial Results

International DisplayWorks, Inc. (IDW) (NASDAQ:IDWK), a
manufacturer and distributor of liquid crystal displays (LCDs),
modules and assemblies, today announced financial results for the
Company's first quarter of fiscal 2006, the period ended January 31,
2006.

   First Quarter Highlights:

   --  Net Sales were $23.5 million, a 30.0% increase over the same
        quarter one year ago.

   --  Gross Margin increased by 15.4 % to $4.2m. Current quarter
        gross margins were 17.9% of net sales.

   --  Operating expenses were $3.4 million or 14.3% of net sales
        verses $2.6 million or 14.3% of net sales one year ago.
        Included in the current quarter's operating expenses was
        $278,000 in non-cash stock-based compensation expense due to
        the adoption of SFAS 123R or 1.2% of net sales.

   --  Net income for the first quarter was $1.4 million, or $.04 per
        fully diluted share. Exclusive of stock-based compensation
        expense of $278,000 and income tax benefit of $897,000, net
        income was $785,000, or $0.02 per fully diluted share.

   "We had a very solid quarter in terms of operating results with
continued progress on sales front, favorable gross margin and
continued solid controls on SG&A spending. With the completion of the
secondary offering the Company is very well positioned and financed to
execute against our growth and strategy plans," commented Tom Lacey,
chairman and chief executive officer of International DisplayWorks.
   "In order to accompany this anticipated growth, we have further
strengthened and diversified our management team through the recent
hiring of Joe Bedewi as our Chief Financial Officer and the
appointment of Sherif Sweha as our Chief Technology Officer. We also
recently entered into a strategic alliance with Integrated Solutions
Technology ("IST"), a collaboration effort aimed at bolstering our
vertical integration strategy by enabling us to develop cost effective
Liquid Crystal Module ("LCM") solutions for a number of applications,
driving both product differentiation and margin enhancement
opportunities for IDW. We will continue to evaluate and pursue new
products and services by further aligning our expertise with our
customer's development efforts earlier in the product lifecycle, with
the ultimate goal of winning incremental business from both new and
future customers."

   Recent Developments

   --  On February 1, 2006 IDW closed its public offering which
        resulted in the issuance of 12.4 million shares of its common
        stock priced at $5.80 per share, including the exercise of the
        "Green Shoe" by underwriters, which generated net proceeds to
        the Company of approximately $67.5 million.

   --  IDW Management unveiled its vertical growth strategy, forming
        a long-term strategic alliance with Taiwan based IST, Inc.
        Through this partnership, IDW and IST will collaborate and
        share resources to create a portfolio of products aimed at
        optimizing cost-performance liquid crystal module (LCM)
        solutions for the small to medium-sized liquid crystal display
        (LCD) panel market. Sherif Sweha was appointed Chief
        Technology Officer to oversee the vertical integration
        strategy.

   --  Mr. Joe Bedewi joined IDW as its new Chief Financial Officer.
        The appointment is consistent with the Company's previously
        announced goal of strengthening and broadening the management
        team, which included previous CFO Jeff Winzeler's transition
        to role of Chief Operating Officer in December 2005 and CEO
        Tom Lacey's focus on accelerating the Company's overall sales
        strategy.

   The Company completed the first quarter with $6.8 million in cash
and cash equivalents. Shareholders' equity increased 4.9 percent to
$37.1 million compared to shareholders' equity of $35.4 million on
October 31, 2005. These numbers exclude the impact of the secondary
offering completed on February 1, 2006, which netted the Company
approximately $67.5 million. After completion of the offering, IDW has
approximately 44,476,579 shares outstanding.
   Jeff Winzeler, the Company's Chief Operating Officer, commented,
"The secondary offering we completed in our second quarter positions
the Company for continued growth. Through the process, we emerged with
a much stronger balance sheet including the necessary working capital
to ramp large customers. By using a portion of the proceeds to pay
down our revolving credit line, we will save approximately $250,000
each quarter in interest expense. We expect to earn investment income
on our surplus cash in excess of $500,000 per quarter. The offering
provided an opportunity to raise the visibility of the Company and
attract new investors. The proceeds will also allow us to execute on
our vertical integration strategy as evidenced by the recent IST
announcement. IDW enters its second quarter of fiscal 2006 in a much
stronger position to execute on our business plan. Our revenue
guidance for the second fiscal quarter is $24 - $30 million and
continues to be largely influenced by the timing of new color
business."

   Teleconference Information

   Management will discuss the results in a conference call today at
4:30 p.m. Interested parties should call 800-811-8845 if calling
within the United States or 913-981-4905 if calling internationally.
There will be a playback available until March 20, 2006. To listen to
the playback, please call 888-203-1112 if calling within the United
States or 719-457-0820 if calling internationally. Please use pass
code 4675836 for the replay. This call is being web cast by ViaVid
Broadcasting and can be accessed at International DisplayWorks'
website at www.idwk.com. The web cast may also be accessed at ViaVid's
website at www.viavid.net. The web cast can be accessed until April 1,
2006 on either site.

   About International DisplayWorks

   International DisplayWorks, Inc. is a manufacturer and designer of
high quality liquid crystal displays, modules and assemblies for a
variety of customer needs including OEM applications. IDW operates
466,000 square feet of manufacturing facilities in the People's
Republic of China (PRC). Sales offices are located in US, Europe, Hong
Kong, Singapore, and China. Copies of IDW's 10-K and other documents
as filed with the SEC are available through a link on our web site:
www.idwk.com.

   NOTE: The foregoing is news relating to International
DisplayWorks, Inc. ("IDW") and contains forward-looking statements,
which are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. When
used in this release, the words "anticipate," "believe," "estimate,"
"expect" and similar expressions as they relate to IDW or its
management, including without limitation, IDW and its subsidiaries,
are intended to identify such forward-looking statements. IDW's actual
results, performance or achievements could differ materially from the
results expressed in, or implied by these forward-looking statements.
For more detailed information the reader is referred to IDW's 10-K and
other related documents filed with the Securities and Exchange
Commission. This does not constitute an offer to buy or sell
securities by the Company and is meant purely for informational
purposes.
-0-
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           INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
            (in thousands, except Share and per share data)



                                                   For Three Months
                                                ----------------------
                                                  Jan. 31,    Jan. 31,
                                                    2006        2005
                                                 Unaudited  Unaudited
                                                ----------------------

   Sales                                           $23,523    $18,086
Cost of goods sold                                  19,320     14,443
                                                ----------------------
   Gross profit                                      4,203      3,643
                                                ----------------------

Operating expenses:
   General and administrative                        2,422      1,917
   Selling, marketing and customer service             664        590
   Engineering, advanced design and
    product management                                 284         83
                                                ----------------------
              Total operating expenses               3,370      2,590
                                                ----------------------

              Operating income                         833      1,053
                                                ----------------------

Other income (expense):
   Interest expense                                   (334)       (62)
   Other income                                          8         24
                                                ----------------------
              Total other expense                     (326)       (38)
                                                ----------------------


              Income before taxes                      507      1,015

              Provision for income taxes              (897)         -
                                                ----------------------

              Net income                            $1,404     $1,015
                                                ======================


Basic and diluted income per common share
    Basic                                            $0.04      $0.03
                                                ======================

    Diluted                                          $0.04      $0.03
                                                ======================

Weighted average common shares outstanding
    Basic                                       32,032,687 30,914,999
                                                ======================

    Diluted                                     33,279,769 31,972,964
                                                ======================


           INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                            (in thousands)



                       ASSETS                    
                       ------                    Jan. 31,    Oct. 31,
                                                   2006        2005
                                               (unaudited)       
                                               ------------ ----------
Current assets:
  Cash and cash equivalents
      Cash in banks                                 $6,368     $8,875
      Cash in banks - restricted deposits              383        383
                                               ------------ ----------
      Total cash and cash equivalents                6,751      9,258
  Accounts receivable, net of allowance for
   doubtful accounts of $23 and $36                 22,515     21,776
  Inventories, net of allowances of $230 and
   $229                                              9,472      8,516
  Prepaid expenses and other current assets          1,650      1,939
                                               ------------ ----------
      Total current assets                          40,388     41,489
                                               ------------ ----------
Other assets
  Deferred tax asset, net of allowances of
   $2,300 and $3,300                                 1,218        262
Property, plant and equipment at cost, net          27,837     27,031
                                               ------------ ----------
      Total assets                                 $69,443    $68,782
                                               ============ ==========

        LIABILITIES AND SHAREHOLDERS' EQUITY
      -----------------------------------------
Current liabilities:
  Accounts payable                                 $13,198    $13,928
  Accrued liabilities                                2,959      3,835
  Income taxes payable                                  96        163
  Line of credit                                    12,076     12,953
  Current portion of long term debt                  2,535      2,545
                                               ------------ ----------
      Total current liabilities                     30,864     33,424
Long-term debt, net of current portion               1,492          5
                                               ------------ ----------
      Total liabilities                             32,356     33,429
                                               ------------ ----------

Commitments and contingencies

Shareholders' equity
  Preferred stock, par $0.001, 10,000,000
   shares authorized, none issued                        -          -
  Common stock, par $0.001, 100,000,000 shares
   authorized 32,056,579 and 31,971,629 
   shares issued and outstanding at January 31,
   2006 and October 31, 2005 respectively               32         32
  Additional paid in capital                        67,613     67,424
  Accumulated deficit                              (31,408)   (32,812)
  Cumulative translation adjustment                    850        709
                                               ------------ ----------
      Total shareholders' equity                    37,087     35,353
                                               ------------ ----------
      Total liabilities and shareholders'
       equity                                      $69,443    $68,782
                                               ============ ==========

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