EMA Emagin Corp

eMagin Corporation (AMEX:EMA) CEO Gary Jones outlined scenarios that would require expanding the company's manufacturing capabilities at the Display Technology and Supply Chain Conference sponsored by W R Hambrecht + Co and the United States Display Consortium held yesterday in San Francisco. The presentation is available at http://wsw.com/webcast/usdc4/ema/. Highlights of the talk and the non-broadcast question and answer session include the following. "Our business is growing and production is ramping back up after equipment downtime during first half of the year," noted Gary Jones, CEO and president, eMagin Corporation. "We have begun considering how to meet future demands. The facilities we would need require careful planning, including the consideration of supply chains for our own products and those of our customers." eMagin currently maintains a single production facility in Hopewell Junction, N.Y. The facility also supports its research and development efforts. "As some of the military and commercial programs featuring our displays expand and our Z800 3DVisor sales grow, we anticipate needing additional OLED display manufacturing capacity. We anticipate that this would be in addition to, not a replacement for, our existing facilities. But, establishing added OLED capacity requires time to explore possible configurations and locations, and we are in the process of considering several locations or partnerships," he noted. Mr. Jones continued, "However, some packaging of our displays has always been planned to be outsourced when OLED production began to hit certain levels, as is common for many semiconductor IC operations. This will enable our current packaging capacity in New York to be available for fast turn packaging and the custom packaging required by certain high added value customers. This transition to mostly outsource packaging is anticipated to be close at hand and should benefit us with lower cost on our highest volume display products." In response to a question about whether the company was shifting its main emphasis from display components to headsets, Mr. Jones responded, "We see the displays and display systems business as a continuum. We currently anticipate growth of all our product segments. We have been providing individual displays, interface boards, cables, optics, imaging modules, and custom display HMDs for a long time. The Z800 3DVisor is an important link in opening the broader markets by providing an affordable way for people to experience the full power of virtual imaging, equivalent to a high cost simulator, in their homes and on travel. We want people to understand that they can have virtual huge PC monitor screens anywhere, anytime, using much less power than even small direct view screens. The power of virtual imaging is only beginning to be understood by the general population and we plan to work with our customers to open new markets for virtual imaging." About eMagin Corporation A leader in virtual imaging technology, 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. With unique technology for producing high-performance small molecule OLED-on-silicon microdisplays and related optical systems, eMagin is the only company to supply these displays in commercial quantities to OEMs. In addition, the company sells integrated modules to military, industrial and medical customers, and has recently announced its first consumer system, the Z800 3DVisor. eMagin's microdisplay operations are co-located with IBM on its campus in East Fishkill, N.Y. Optics and system design facilities are located in Bellevue, Wash. For additional information, please visit www.emagin.com and www.3dvisor.com. Note: eMagin and 3DVisor are trademarks of eMagin Corporation.