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San Jose, CA, March 22, 2006 -- Solid unit growth, underpinned by technology advancements, will continue the upward momentum of the worldwide flat panel display (FPD) industry. That was the conclusion reached by participants at last week’s U.S. Display Consortium (USDC) Industry Investment Conference. The conference, co-sponsored by the investment banking firm of Needham & Co. LLC, drew over 250 senior executives, institutional analysts, investment bankers and private money managers to the New York Millenium Hotel and Conference Center.

DisplayBank, a South Korea-based market research firm, opened the March 15, 2006 conference by forecasting that LCD TV shipments will double from 2005 levels, resulting in 40M units in 2006. Plasma display panel (PDP) shipments will also increase from 5.5M units last year to 9.3M units in 2006. This unit growth will substantially increase FPD TV market penetration to 28% in 2006, rising to almost 60% in 2010. Technical advancements will include improved viewing angles and faster video response times to enhance picture quality and the viewing experience.

While TV represents an enormous opportunity for display manufacturers, other markets are helping to propel the display industry forward. Qualcomm pointed out that the mobile phone is the important “third screen” after computers and TVs and will grow in value as consumers use it for audio and text communications, gaming, photography and as a 2” TV.

Digital signage now represents a $2.28B market with a CAGR of 28%, according to Weinstock Media Analysts. Other significant applications reside in displays for medical imaging, media and surveillance markets.

Driven by demand for new, digital TVs and other products, the FPD industry will need to build more than 25 new fabs over the next two years, according to Applied Films Corp.

These fabs, which are larger than previous installations, are driving up glass demand by 40-50% in 2006 in Corning’s view.

Orbotech commented that shifting to in-line inspection of substrates will be critical for improved yield management in the FPD manufacturing process.

The conversion of 120,000 movie theaters worldwide from film-based projectors to digital cinema is expected to begin this year, observed Barco, giving a boost to high-end projector demand.

Insight Media noted that rear projection TV (RPTV) faces increasing competition from PDPs and ever larger LCDs. This will result in RPTV ASPs shrinking from $2552 in 2005 to $2138 in 2006.

eMagin predicted that near-to-eye (NTE) displays will demonstrate substantial growth prospects, as personal video recorders, gaming and PC-based 3D gaming gain traction with consumers.

Demand for large area displays incorporating LEDs is rapidly increasing, especially in sports venues (20% growth) and industrial signage (60% growth), commented Daktronics.

Bruce Berkoff, newly appointed CEO of Enuclia Semiconductor, summed up the excitement in the display industry by pointing out that three simultaneous waves are now occurring:

Berkoff observed that, when taken together, these elements are providing more product functionality with stunning picture realism, setting the stage for continuing FPD industry growth through 2010.

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

USDC Investment Conference Confirms Upbeat Trends In Worldwide Display Industry

USDC Investment Conference Confirms Upbeat Trends
In Worldwide Display Industry