International DisplayWorks, Inc. Announces Record Financial Results for Fourth Quarter and Fiscal 2005; Fourth Quarter Sales Inc

International DisplayWorks, Inc. (IDW) (Nasdaq:IDWK), a
manufacturer and designer of liquid crystal displays (LCDs), modules
and assemblies, today announced financial results for the Company's
fourth fiscal quarter and fiscal year ended October 31, 2005.

   Fourth Quarter 2005/Full-Year Highlights:

   --  Net sales for the quarter increased 68.0 percent
        year-over-year to $24.0 million

   --  Full-year net sales increased 90.9 percent to $88.3 million

   --  Net income for the year increased to 250.7 percent to $3.8
        million, or $0.12 per diluted share

   --  IDW achieved SOX 404 compliance

   For the fourth quarter, net sales were a record $24.0 million, an
increase of 68.0 percent compared to the $14.3 million reported for
the fourth quarter of fiscal 2004. The Company's gross profit
increased 20.0 percent to $3.8 million, or 15.7 percent of net sales,
compared to a gross profit of $3.1 million, or 22.0 percent of net
sales, for the same period a year ago. Sales, General and
Administrative expenses decreased from 18 percent of net sales, or
$2.6 million, to 14 percent of net sales, or $3.4 million. The Company
reported operating income of $415,000 compared to operating income of
$549,000 for the fourth quarter last year. Net income was $294,000, or
$0.01 per basic and fully diluted share, compared with net income of
$532,000, or $0.02 per basic and fully diluted share last year. The
fully diluted weighted average common shares outstanding were 33.3
million for the fourth quarter of fiscal 2005 versus 32.2 million for
the same quarter last year.
   "We continued to report both sequential and year-over-year revenue
growth and ongoing profitability, driven in part by ongoing reductions
in our sales, general and administrative expenses as a percentage of
revenue," commented Tom Lacey, International DisplayWorks' chairman
and Chief Executive Officer. "This was in fact our 10th consecutive
quarter of sequential revenue growth. Additionally, during the quarter
we announced some significant customer wins. We are pleased with the
continued progress in customer diversification, both in terms of the
number of large customers in our portfolio and the end-markets for our
products, factors which should further insulate us from individual
customer events and economic trends."
   For the fiscal year period ended October 31, 2005, the Company
reported net sales of $88.3 million, an increase of 90.9 percent
compared to the $46.2 million reported for the same period last year.
Gross profit margin was $15.7 million, or 17.7 percent of net sales,
compared to gross profit margin of $10.1 million, or 21.9 percent of
net sales for the previous fiscal year. Sales, General and
Administrative expenses were $11.3 million, or 12.8 percent of net
sales, compared to $8.7 million, or 18.9 percent of net sales, for the
same period last year. Operating income for the year was $4.3 million
compared to $1.4 million for fiscal 2004. Net income was $3.8 million,
or $0.12 per basic and fully diluted share, compared with net income
of $1.1 million, or $0.04 per basic and fully diluted share last year.
The fully diluted weighted average common shares outstanding were 32.7
million for fiscal 2005 versus 27.5 million for fiscal 2004.
   The Company completed the year with $9.3 million in cash and
equivalents compared to $10.2 million at the end of last year. The
Company closed fiscal '05 with approximately 39 days of inventory
compared to 47 days at the end of last year. The Company's property,
plant and equipment balance was $27 million dollars, an increase of
$16.4 million from last year as a result of the addition of two new
factories. Total liabilities increased to $33.4 million from $15.8
million at the end of 2004 as a result of funds borrowed to purchase
the Beijing facility. Shareholders' equity increased 21.3 percent to
$35.4 million at October 31, 2005 from $29.1 million at October 31,
2004.
   Jeff Winzeler, the Company's chief financial officer and chief
operating officer, commented, "We are pleased to report our 9th
consecutive profitable quarter and we delivered a net income increase
of 251% compared to last year. I am very pleased to announce that the
Company has achieved Sarbanes Oxley 404 certification -- a significant
milestone for IDW. As we move into fiscal 2006, we expect first
quarter revenue of $21.0 to $24.5 million. Our directional revenue
outlook for the second quarter is in the $26 to $34 million dollar
range. We will give formal guidance during our first quarter 2006
conference call."
   Mr. Lacey concluded, "Our reputation remains solid and we continue
to win business with top tier manufacturers, who have carefully
reviewed and qualified IDW and have demonstrated confidence in our
capabilities. As we continue to grow and successfully execute on these
wins, we expect to win additional business from both current and other
large, established manufacturers. In summary, we have made significant
progress in our growth strategy, are clearly at an inflection point in
the business and have a lot to accomplish during the remainder of this
calendar year."

   Recent Highlights

   --  On December 5, IDW announced it received an initial tooling
        order and named as first source supplier for Whirlpool for
        monochrome displays for a new washing machine, with
        anticipated revenue expected to exceed $1 million. The Company
        anticipates shipping these displays during the 2006 calendar
        year, with mass production beginning in the Company's second
        fiscal quarter.

   --  On December 7, IDW announced it passed the audit for
        ISO/TS16949:2002, enabling IDW to receive the ISO/TS16949:2002
        certification in early 2006 and clearing the path for IDW to
        secure automotive clients.

   --  On December 12, IDW announced that Jeff Winzeler was named to
        fill the newly created position Chief Operating Officer of
        IDW. Mr. Winzeler will continue to serve as the Company's
        Chief Financial Officer.

   Teleconference Information

   Management will discuss the results in a conference call today at
4:30 p.m. EST. Interested parties should call 888-823-7457 if calling
within the United States or 973-582-2718 if calling internationally.
There will be a playback available until January 17, 2006. To listen
to the playback, please call 877-519-4471 if calling within the United
States or 973-341-3080 if calling internationally. Please use pass
code 6893489 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 October
6, 2005 on either site. To access the web cast, you will need to have
the Windows Media Player on your desktop. For the free download of the
Media Player please visit:
http://www.microsoft.com/windows/windowsmedia/en/download/default.asp.

   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,
due to changes in customer forecasts, timing of purchase orders,
introduction of new and competitive products in the markets in which
our products are used, and other factors discussed under the Risk
Factors contained in our annual report and other reports filed with
the Securities and Exchange Commission. For more detailed information
the reader is referred to IDW's annual report on Form 10-K and other
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.
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          INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
                            (in thousands)


                                               October 31, October 31,
                     ASSETS                       2005        2004
---------------------------------------------- ----------- -----------
Current assets:
 Cash and cash equivalents
   Cash in banks                                $   8,875    $  8,187
   Cash in commercial paper                             -       1,999
   Cash in banks - restricted deposits                383           -
                                                ----------   ---------
   Total cash and cash equivalents                  9,258      10,186
 Accounts receivable,
    net of allowance for doubtful accounts of
     $36 and $101                                  21,776      11,378
 Inventories                                        8,516       5,780
 Prepaid expense and other current assets           1,939       1,160
                                                ----------   ---------
   Total current assets                            41,489      28,504
                                                ----------   ---------

Other assets
 Deferred tax asset                                   262           -

Property, plant and equipment at cost, net         27,031      16,418
                                                ----------   ---------
   Total assets                                 $  68,782    $ 44,922
                                                ==========   =========

      LIABILITIES AND SHAREHOLDERS' EQUITY
----------------------------------------------
Current liabilities:
 Accounts payable                               $  13,928    $  7,236
 Accrued liabilities                                3,998       3,588
 Line of credit                                    12,953       4,398
 Current portion of long term debt                  2,545         496
                                                ----------   ---------
   Total current liabilities                       33,424      15,718

Long-term debt, net of current portion                  5          70
                                                ----------   ---------

   Total liabilities                               33,429      15,788
                                                ----------   ---------

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 31,971,629 and 30,573,383 shares
  issued and outstanding at October 31, 2005
  and October 31, 2004 respectively                    32          31
 Additional paid in capital                        67,424      65,611
 Accumulated deficit                              (32,812)    (36,579)
 Cumulative translation adjustment                    709          71
                                                ----------   ---------
   Total shareholders' equity                      35,353      29,134
                                                ----------   ---------
   Total liabilities and shareholders' equity   $  68,782    $ 44,922
                                                ==========   =========



          INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
           (in thousands, except Share and per share data)

                    For Three Months Ended    For Twelve Months Ended
                   ------------------------- -------------------------
                   October 31,  October 31,  October 31,  October 31,
                       2005         2004         2005         2004
                   ------------ ------------ ------------ ------------

 Net sales         $    23,955  $    14,259  $    88,278  $    46,234
Cost of goods sold      20,194       11,125       72,618       36,123
                   ------------ ------------ ------------ ------------
 Gross profit            3,761        3,134       15,660       10,111
                   ------------ ------------ ------------ ------------

Operating
 expenses:
 General and
  administrative         2,162        1,825        7,693        5,403
 Selling,
  marketing and
  customer service         831          589        2,750        2,096

 Engineering,
  advanced design
  and product
  management               352          171          877          625
 Litigation
  settlement                 -            -            -          625
                   ------------ ------------ ------------ ------------
   Total operating
    expenses             3,345        2,585       11,320        8,749
                   ------------ ------------ ------------ ------------

   Operating
    income                 416          549        4,340        1,362
                   ------------ ------------ ------------ ------------

Other income
 (expense):
 Interest expense         (256)         (63)        (681)        (396)
 Other income
  (expense)                 36           46            9          108
                   ------------ ------------ ------------ ------------
   Total other
    income
    (expense)             (220)         (17)        (672)        (288)
                   ------------ ------------ ------------ ------------
   Income from
    continuing
    operations
    before income
    taxes                  196          532        3,668        1,074
                   ------------ ------------ ------------ ------------
   Income tax
    benefit                (99)           -          (99)           -
                   ------------ ------------ ------------ ------------

   Net income      $       295  $       532  $     3,767  $     1,074
                   ============ ============ ============ ============


Basic and diluted
 income per common
 share
  Basic            $      0.01  $      0.02  $      0.12  $      0.04
                   ============ ============ ============ ============

  Diluted          $      0.01  $      0.02  $      0.12  $      0.04
                   ============ ============ ============ ============

Weighted average
 common shares
 outstanding
  Basic             31,965,374   30,312,133   31,388,406   25,647,763

  Diluted           33,287,206   32,175,598   32,710,238   27,511,228
                   ============ ============ ============ ============
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