Wave Issue 2003 1/19/00 Article 9-01

***MicroDisplay Corporation Receives $6MM In Strategic
Relationship with Daeyang E&C
(January 17)

The MicroDisplay Corporation announced a $6MM investment from
Daeyang E&C. This investment constitutes MicroDisplay's second
round of corporate capital investment and aligns the display
manufacturer with a second customer and partner in the Pacific
Rim. Discussions between MicroDisplay and Daeyang began late in
the summer of 1999, concluding at the deal signing on Monday,
January 10, 2000. Daeyang expects to use the advantages of the
high resolutions, low power requirements, and low cost offered by
MicroDisplay in their consumer electronics products. MicroDisplay
expects to use proceeds of this investment for working capital,
product development, and marketing.

Daeyang demonstrated an early prototype of their head-mounted
personal display system at PC-Expo in 1999, using a display from
industry competitor Colorado Microdisplay. With this investment
and a sales agreement to be announced soon, Daeyang has selected
MicroDisplay Corporation as its sole supplier for the displays to
be included in the personal display system.

In aligning with a second Asian consumer product developer, in
addition to Hansol Electronics, MicroDisplay Corporation has
gained another partner in the Pacific Rim, opening doors for
other relationships and product developments. Daeyang brings
varied market experience, distribution channels, and product
development corps, as well as general manufacturing experience.