eMagin Emphasizes Continued Growth At 2004 Annual Meeting

Hopewell Junction, N.Y. — eMagin Corporation (AMEX:EMA), the leading developer of organic light emitting diode (OLED) microdisplay technology, held its Annual Meeting of Shareholders on Tuesday, June 15, at the American Stock Exchange.

At the meeting the company underscored that with its displays now appearing in more than twenty products, and with more products being developed, it is preparing to meet higher demand for its OLED-on-silicon microdisplays and microdisplay systems.

"We've made great strides over the last year as customers' products that were in development moved into manufacturing," noted Gary Jones, CEO and president, eMagin Corporation. "And with more people demanding mobile access to data, especially image-rich data, we anticipate even broader markets for our virtual imaging products in the coming years."

Mr. Jones also noted that he expects additional near-term announcements of products using eMagin displays. In addition, he reported that the joint development of very small, lower-resolution displays for digital cameras and camcorders undertaken with Rohm Corp. is still on schedule.

Summarizing the company's mission "to bring virtual imaging capability to the world in order to enhance human experience and to enable people to become more effective at whatever they do," Mr. Jones noted that the company's achievements in restructuring its debt, improving its supply chain and manufacturing, and developing new products all contributed to a successful 2003 and pointed to continued progress toward fulfilling its mission.

Shareholders approved all proposals presented at the meeting, which included the following matters:

Elected three Class C directors to serve three-year terms: Claude Charles, president of a private international consulting firm; Dr. Jack Goldman, retired senior vice-president for R&D and chief technical officer of the Xerox Corporation; and Dr. Jill Wittels, corporate vice president of business development for L-3 Communications


Approved 2004 Non-Employee Compensation Plan

Ratified Eisner LLP as the company's independent auditor

Forward-looking statements or additional information provided at the meeting included:
Reconfirmation of the guidance given in eMagin's first quarter conference call with analysts that, pending auditor review, the second quarter is expected to see a new high for product sales and that the company is increasingly optimistic about being EBITDA-positive on a monthly basis later this year


A $4.3 million cash balance at the end of May, which is not significantly less than the cash balance at the end of March, despite an increasing amount of cash that has been going into prepayments to build a growing supply line and efforts to grow a larger inventory of finished goods


The apparent resolution of the incoming CMOS wafer yield issues that were reported in the first quarter conference call.
About eMagin Corporation

eMagin is a leader and innovator in near-to-the-eye virtual imaging technologies and products, integrating high-resolution OLED displays (smaller than one inch), magnifying optics, and systems technologies to create a virtual image that appears comparable to that of a computer monitor, a large-screen television, or even a theater-like experience. eMagin's microdisplay systems are expected to enable new mass markets for wearable personal computers, wireless Internet appliances, portable DVD-viewers, digital cameras, and other emerging applications for consumer, industrial, military, and homeland defense applications. The company has developed unique technology for producing high-performance OLED-on-silicon microdisplays and related optical systems. eMagin is the only company to announce, show, and sell full-color active matrix OLED-on-silicon microdisplays, licensing OLED technology from Eastman Kodak Company. The company supplies these displays in commercial quantities to OEMs. In addition, the company sells integrated modules to military, industrial and medical customers. eMagin's corporate headquarters and microdisplay operations are co-located with IBM on its campus in East Fishkill, N.Y. Optics and system design facilities are located at its wholly-owned subsidiary, Virtual Vision, Inc., in Redmond, Wash. For more information, visit http://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.

Media Contact:

Joe Runde, eMagin, 845-838-7905, jrunde@emagin.com

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