EMA Emagin Corp

eMagin Corporation (AMEX:EMA) shareholders approved all proposals presented, including the Company�s plans for a reverse stock split, at the annual meeting held Friday, Oct. 20, 2006. eMagin reported that 80,427,352 votes were cast, representing nearly 80% of the Company�s outstanding shares eligible to vote as of the record date. eMagin�s CEO and President, Gary Jones, gave a briefing on the company�s progress over the most recent 18 months: Proposals adopted by the shareholders. (1) Elected Directors Paul Cronson, Thomas Paulsen, and Stephen Seay as Directors to hold office for terms of three years; (2) Amended the Company�s Articles of Incorporation to increase the number of Directors which may be appointed to the Company�s Board of Directors from a maximum of nine to ten persons; (3) Authorized the Company�s Board of Directors to amend the Certificate of Incorporation to effect a reverse stock of the outstanding shares of common stock at a ratio of one-for-ten. November 3, 2006, is tentatively set as the effective date for the split; (4) Authorized potential issuance of common stock pursuant to the 6% Senior Secured Convertible Notes Due 2007-2008 and warrants to purchase shares of the Company�s common stock at a price below fair market value; (5) Amended the 2004 Non-Employee Stock plan by increasing the number of shares issuable to 9.5 million; and (6) Ratified the appointment of Eisner LLP as the Company�s independent auditors for the fiscal year ending December 31, 2006. Technology and Product Highlights: Introduced first consumer-oriented product, the Z800 3DVisor(TM), which won the Consumer Electronics Association�s Best of Innovations Award beating out large screen LCD and plasma televisions, as well as receiving a CES Innovation Design Award for electronic gaming and Digital Life Innovator recognition. This month Gotfrag.com included the Z800 3DVisor as one of products that �shape the future of computer hardware � the cutting-edge devices that redefine the standards and break new ground.� Developed and brought to market its new OLED-XL(TM) technology, which provides much longer display luminance life, lower power consumption, and higher luminance. Improved factory production substantially in terms of both output quantity and quality. International production manufacturing qualifications were achieved with several commercial and military OEMs. Was notified of major new design wins and contracts, with new funding support from the US government for next generation IC and technology development. It was also noted that eMagin�s average product unit selling price is also improving after the redirection in mid-2006 toward focusing on military and high end commercial markets. Verified next generation capability with smaller pixel sized SVGA 3Dshrink prototypes and new control features with military importance. Mr. Jones commented, �We believe that these recent placements of our microdisplays by OEMs in major systems such as Sagem�s FELIN system in European military programs and Nivisys� TAM-14 being deployed by the U.S. Department of Homeland Security indicate a strong future for the Company�s OLED technology. While timing of implementation of many defense procurement programs was pushed out during the past 2 years, primarily due to programmatic or technical issues not related to eMagin, we believe that the prospects for this business remains attractive and traction is beginning to be seen in revenue growth.� �Current Z800 3DVisor sales are increasing, with interest growing from commercial and military simulation customers. We believe that the consumer market for virtual imaging is still expected to become a major segment in the future. For the near term, eMagin plans to pursue expansion of this important opportunity primarily through partnerships and licensing due to the extensive level of resources required to open this market properly. Nevertheless, we believe that the Z800 3DVisor represents a significant milestone by demonstrating the power of high-resolution virtual imaging, virtual reality gaming, and highly portable virtual large HDTV capable computer screens. As a result, the system continues to catalyze serious interest from several large consumer OEM partners.� Financial performance is also improving, according to Jones. �Costs are down and third quarter revenue is expected to show a substantial increase over the same period last year, providing continued improvement in traction in our key markets. Details will be reported in our next earnings statement for the third quarter.� Mr. Jones noted that financing a company in this period with the expenses of a high tech semiconductor IC-like manufacturing clean room and supporting multiple disciplines of the related business in this emerging market, coupled with delays in contract start by major customers due to their own end customers�delays, has remained a challenge and created cash flow pressure. He further stated that next generation IC designs are needed to insure that eMagin�s products remain the best in its market segment, the most important of which is the SXGA development which is to be mostly supported by government contracts and expected to initiate shortly. Mr. Jones also disclosed that the Company has received several inquiries from various strategic relationships ranging from investment to acquisition and that the firm has retained CIBC World Markets Corporation and Larkspur Capital Corporation to assist the company in investigating these and other strategic alternatives. About eMagin Corporation A leader in OLED microdisplay technology, eMagin integrates high-resolution OLED microdisplays with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs. The company�s own Z800 3DVisor, provides 3D stereovision and headtracking for PC gaming, training and simulation, immersion therapy, and other 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. For additional information, please visit www.emagin.com. Forward Looking Statements Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. eMagin Corporation (AMEX:EMA) shareholders approved all proposals presented, including the Company's plans for a reverse stock split, at the annual meeting held Friday, Oct. 20, 2006. eMagin reported that 80,427,352 votes were cast, representing nearly 80% of the Company's outstanding shares eligible to vote as of the record date. eMagin's CEO and President, Gary Jones, gave a briefing on the company's progress over the most recent 18 months: Proposals adopted by the shareholders. (1) Elected Directors Paul Cronson, Thomas Paulsen, and Stephen Seay as Directors to hold office for terms of three years; (2) Amended the Company's Articles of Incorporation to increase the number of Directors which may be appointed to the Company's Board of Directors from a maximum of nine to ten persons; (3) Authorized the Company's Board of Directors to amend the Certificate of Incorporation to effect a reverse stock of the outstanding shares of common stock at a ratio of one-for-ten. November 3, 2006, is tentatively set as the effective date for the split; (4) Authorized potential issuance of common stock pursuant to the 6% Senior Secured Convertible Notes Due 2007-2008 and warrants to purchase shares of the Company's common stock at a price below fair market value; (5) Amended the 2004 Non-Employee Stock plan by increasing the number of shares issuable to 9.5 million; and (6) Ratified the appointment of Eisner LLP as the Company's independent auditors for the fiscal year ending December 31, 2006. Technology and Product Highlights: -- Introduced first consumer-oriented product, the Z800 3DVisor(TM), which won the Consumer Electronics Association's Best of Innovations Award beating out large screen LCD and plasma televisions, as well as receiving a CES Innovation Design Award for electronic gaming and Digital Life Innovator recognition. This month Gotfrag.com included the Z800 3DVisor as one of products that "shape the future of computer hardware - the cutting-edge devices that redefine the standards and break new ground." -- Developed and brought to market its new OLED-XL(TM) technology, which provides much longer display luminance life, lower power consumption, and higher luminance. -- Improved factory production substantially in terms of both output quantity and quality. International production manufacturing qualifications were achieved with several commercial and military OEMs. -- Was notified of major new design wins and contracts, with new funding support from the US government for next generation IC and technology development. It was also noted that eMagin's average product unit selling price is also improving after the redirection in mid-2006 toward focusing on military and high end commercial markets. -- Verified next generation capability with smaller pixel sized SVGA 3Dshrink prototypes and new control features with military importance. Mr. Jones commented, "We believe that these recent placements of our microdisplays by OEMs in major systems such as Sagem's FELIN system in European military programs and Nivisys' TAM-14 being deployed by the U.S. Department of Homeland Security indicate a strong future for the Company's OLED technology. While timing of implementation of many defense procurement programs was pushed out during the past 2 years, primarily due to programmatic or technical issues not related to eMagin, we believe that the prospects for this business remains attractive and traction is beginning to be seen in revenue growth." "Current Z800 3DVisor sales are increasing, with interest growing from commercial and military simulation customers. We believe that the consumer market for virtual imaging is still expected to become a major segment in the future. For the near term, eMagin plans to pursue expansion of this important opportunity primarily through partnerships and licensing due to the extensive level of resources required to open this market properly. Nevertheless, we believe that the Z800 3DVisor represents a significant milestone by demonstrating the power of high-resolution virtual imaging, virtual reality gaming, and highly portable virtual large HDTV capable computer screens. As a result, the system continues to catalyze serious interest from several large consumer OEM partners." Financial performance is also improving, according to Jones. "Costs are down and third quarter revenue is expected to show a substantial increase over the same period last year, providing continued improvement in traction in our key markets. Details will be reported in our next earnings statement for the third quarter." Mr. Jones noted that financing a company in this period with the expenses of a high tech semiconductor IC-like manufacturing clean room and supporting multiple disciplines of the related business in this emerging market, coupled with delays in contract start by major customers due to their own end customers'delays, has remained a challenge and created cash flow pressure. He further stated that next generation IC designs are needed to insure that eMagin's products remain the best in its market segment, the most important of which is the SXGA development which is to be mostly supported by government contracts and expected to initiate shortly. Mr. Jones also disclosed that the Company has received several inquiries from various strategic relationships ranging from investment to acquisition and that the firm has retained CIBC World Markets Corporation and Larkspur Capital Corporation to assist the company in investigating these and other strategic alternatives. About eMagin Corporation A leader in OLED microdisplay technology, eMagin integrates high-resolution OLED microdisplays with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs. The company's own Z800 3DVisor, provides 3D stereovision and headtracking for PC gaming, training and simulation, immersion therapy, and other 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. For additional information, please visit www.emagin.com. Forward Looking Statements Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise.