eMagin Announces Equity Private Placement

HOPEWELL JUNCTION, N.Y.— eMagin Corporation (AMEX:EMA), the leading developer of active matrix organic light emitting diode (OLED) microdisplays, today announced that it executed definitive agreements for a private placement of equity securities to institutional investors. The initial amount of the placement was approximately $4.2 million with options to acquire an additional two tranches of $2.0 million each no later than 6 months and 12 months, respectively, from the closing of the transaction.

Provided the optional two tranches are invested over the next year, eMagin will have issued approximately 5.6 million shares and received gross proceeds of approximately $8.4 million. In addition, Warrants were issued to purchase up to approximately 3 million shares of Common Stock within 5 years. Additional information about the financing will be provided on Form 8K.



Larkspur Capital Corporation acted as the exclusive placement agent for the financing.

Gary Jones, eMagin's chairman and chief executive officer ,commented, "This financing provides us with additional cash for executing our business plan and increasing our receivables, supply inventories, and finished good inventories as we continue to grow."

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security. The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act of 1933, as amended, and applicable state securities laws or an applicable exemption from registration requirements. eMagin has agreed to file a registration statement covering the resale of the shares of common stock purchased in the private placement, as well as those shares of common stock underlying the warrants.

Forward Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company's most recent filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in forward-looking statements. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.

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