USDC’S INAUGURAL SAN FRANCISCO DISPLAY TECHNOLOGY INVESTMENT CONFERENCE REVEALS SIGNIFICANT MARKET OPPORTUNITIES IN FPD SPACE

Record Attendance at First-ever West Coast Conference Underscores Burgeoning Interest in the Display Industry Among Today’s Financial Community

SAN JOSE , Calif. , October 6, 2004- The underlying consensus stemming from the San Francisco Display Technology Investment Conference (co-sponsored by the U.S. Display Consortium— USDC —and WR Hambrecht + Co.) is that the FPD industry continues to pose significant market and investment opportunities, as evidenced by the record attendance of leading investment firms, research houses, brokerages and related financial institutions. More than 200 people convened in San Francisco on September 23, 2004 , to hear from senior-level executives of prominent publicly traded and private companies in the display sector. In addition to giving the financial audience a glimpse of the latest trends, advancements and business opportunities afforded by the burgeoning display industry, presenting companies also set some realistic expectations surrounding the challenges facing the market as a whole, including overcapacity and supply shortages.

Conference Highlights
The day-long conference kicked off with a brief display tutorial, delivered by USDC CTO Dr. M.R. Pinnel, giving attendees an opportunity to immerse themselves in FPD industry terms, trends and supply-chain infrastructure status. This was followed by a keynote address by FPD veteran Joe Virginia, who serves as vice president of sales and marketing for Samsung Electronics’ LCD Business/Americas Region. Virginia discussed Samsung’s outlook for the TFT-LCD industry, while reiterating the company’s commitment to being a significant contender in the emerging LCD TV market. The company’s recent $2-billion Generation 7 fab joint venture with Sony in Tangjung “Crystal Valley,” South Korea, is demonstrative of this, Virginia noted, and added that this new manufacturing line will have as much capacity as all of Samsung’s other lines combined.

The conference included simultaneous presentations from leading publicly traded companies, including eMagin Corp. (AMEX: EMA), Genesis Microchip Inc. (NASDAQ: GNSS), In-Focus Corporation (NASDAQ: INFS), Photon Dynamics, Inc. (NASDAQ: PHTN), Supertex, Inc. (NASDAQ: SUPX), Three-Five Systems, Inc. (NYSE: TFS), Applied Films (NASDAQ: AFCO), Brillian Corporation (NASDAQ: BRLC) , Trident Microsystems, Inc. (NASDAQ: TRID) and Universal Display Corporation (NASDAQ: PANL) and Zoran Corporation (NASDAQ: ZRAN).

The luncheon keynote address was delivered by Texas Instruments’ Manager for DLPs, John Reder, who delved into the growing momentum of DLP TVs in the consumer electronics market, specifically, the projection television market. Reder's presentation also highlighted the advantages of DLP technology, its customers and applications, and provided insight into market trends and forecasts for DLP-based products. Of particular interest, Reder noted that DLP is ideal for addressing the rapidly growing 40-inch+ TV market; that many opportunities still exist to improve the supply chain and reduce cost; and, that microdisplay TV-based product lines are rapidly expanding.

Reder’s keynote was followed by a roundtable with some prominent names in next-generation LCD manufacturing, including Applied Materials/AKT, Abbie Gregg, Inc. (AGI) and DuPont Imaging Technologies. This panel made some key observations, recognizing that ever-increasing substrate sizes will put a premium on manufacturing excellence and that materials and component costs need to be reduced in order to bring LCD TVs to the mass market. Brian Eyre of DuPont outlined that the company’s radical new method of fabricating a key TFT-LCD component—the color filter—a move that would enable significant cost reductions in LCD monitors and televisions.

The last of the day’s roundtable panels focused on emerging technologies, markets and applications with participants from Intel Corporation (NASDAQ: INTC), Brillian Corporation, Iridigm, Reflectivity and Information Technologies Limited. The animated panel covered a spectrum of new display technologies and applications—including MEMS-based reflective direct-view display technology, micromirror array and micro-assembly technologies, plasma and LCOS microdisplays.

Barry Young, senior analyst for Display Search, presented recent market data and findings on the FPD industry — specifically, TFT-LCDs. Young noted that TFT-LCD suppliers need to proceed with caution given current market uncertainty and fear of overcapacity, as all major manufacturers are investing at the same time—building new fabs while simultaneously expanding existing fabs. For the price-sensitive TV market, Young believes that costs must fall and performance must improve—and that TFT-LCDs are still facing fierce competition from CRTs, PDPs and DLP, who are also jockeying for position to capture the TV market. Even so, he added, there are reasons for optimism, in that TFT-LCD suppliers have a tremendous track record in reducing costs, improving performance and taking share from competing technologies. Young further pointed out that surpluses traditionally have never lasted for an excessive period as suppliers have delayed new fab spending, and “magical” price points have always triggered rapid demand growth, shortages and large profits. “And, in the case of TVs,” said Young, “TFT-LCDs already offer the highest brightness and contrast in the thinnest form factor. What TV buyers want most are large, inexpensive flat-panel TVs, and LCDs will be able to meet this demand.”

Several private companies—including Applied Photonics, Inc., E Ink Corporation, Eikos, eLCOS Microdisplay Technology, Aurora, Imaging Systems Technology, Silicon Optix, Inc. and Vitex Systems—concluded the event, providing a wealth of information on the opportunities represented by smaller companies. The entrepreneurial spirit demonstrated by these companies — which all are entering from various segments, such as equipment, materials and electronics—shows that the FPD industry is making significant strides in bringing new applications to market, while simultaneously looking at ways to better performance, functionality and cost through unique solutions.

Commenting on the success of the conference, Michael Ciesinski, CEO of USDC, noted, “It’s clear from the record-setting attendance that interest in the FPD industry continues to grow. The caliber and significant market presence of the participating companies demonstrates the longevity and viability of this market. Moreover, the technology advancements highlighted during this forum illustrate the vast potential for this technology to address applications never thought possible—taking this industry to even new levels. Lastly, the candid discussions surrounding the challenges facing this industry were ideal for educating the financial community and providing the background information necessary to help them make sound investment decisions.”

“The rapid growth in the display market continues to create numerous investment opportunities in both the public and private markets. With the expansion of new applications for high quality displays, investment capital will continue to flow into developing new technologies, as well as increasing manufacturing capacity. The companies and industry analysts in attendance highlighted the opportunities that lay ahead, and investors received valuable insight to help guide their investment approach to this exciting market. It was a terrific event,” noted Mark Specker, managing director of capital markets at WR Hambrecht + Co.

The USDC sponsors conferences and technology summits throughout the year to gain industry consensus on impediments to the deployment of new display technologies, and to identify critical supply-chain projects that can speed product development and implementation. Its next event, the fourth annual Flexible Microelectronics and Display Workshop and Conference, will be held February 1-3, 2005 , in Phoenix , Ariz. More information on the conference can be found by clicking here.

Contact:

Heidi Hoffman
USDC
408.993.8111
heidi@usdc.org

Marie Labrie
MCA
PH: 650.968.8900
FAX: 408-277-2490
Email: mlabrie@mcapr.com

About the U.S. Display Consortium
The U.S. Display Consortium is an industry-led public/private partnership providing a common platform for flat panel display and flexible microelectronics manufacturers and developers, FPD users, and the supplier base. Headquartered in San Jose, Calif., the consortium’s primary mission is to fund supply-chain projects and share the results with USDC member companies. The USDC also provides a communication channel among industry, government and the financial communities for display issues; sponsors workshops to broaden the impact of technological developments; and educates consumers on the importance of displays in providing access to information technology. More information about the USDC can be found at www.usdc.org

About WR Hambrecht + Co
WR Hambrecht + Co (www.wrhambrecht.com) is a financial services firm committed to using the Internet and auction process to level the playing field for investors and issuers.  The firm’s impartial internet-based auctions, which allow the market to determine pricing and allocation, are dramatically changing the financial services landscape.  WR Hambrecht + Co provides underwriting and advisory services for technology and emerging growth companies, as well as equity research, sales and trading, full-service and online brokerage and private equity offerings for institutions and individuals.  WR Hambrecht + Co has offices in San Francisco, New York, Boston, Philadelphia and Chicago and is backed by industry leaders including:  American Century, American Express, Crimson Ventures, epartners, Fidelity Ventures, Instinet Corporation, Novell, Park Avenue Equity Partners, LP, Scudder Technology Fund, Kemper Technology Fund and Texas Pacific Group.   Member NASD/SIPC.