eMagin Corporation Finalizes $33.6 Million U.S. Department of Defense Contract

Rhea-AI Summary

eMagin Corporation (NYSE American: EMAN) has secured a $33.6 million contract with the U.S. Department of Defense to enhance the production of high-resolution OLED microdisplays. This funding will facilitate the installation of advanced production equipment at its New York facility, aimed at improving manufacturing throughput and yield. The company plans to increase its U.S.-based workforce by 10% over the contract's duration. Additionally, it has expanded its manufacturing footprint by over 25% to accommodate new equipment and is actively hiring for R&D and production roles.

Positive

• Secured $33.6 million contract with U.S. Department of Defense.
• Plans to expand U.S.-based workforce by 10%.
• Manufacturing footprint increased by over 25%.

Negative

• None.

Capital Plan and Deliverables Finalized Around Defense Production Act Title III Investment to Enhance Manufacturing Throughput and Yield

eMagin to Expand Its U.S.-based Workforce by 10%

HOPEWELL JUNCTION, N.Y., Sept. 16, 2021 (GLOBE NEWSWIRE) -- eMagin Corporation (NYSE American: EMAN), a leader in the development, design and manufacture of Active Matrix OLED microdisplays used in military and commercial AR/VR devices, and other near-eye imaging products, today announced it has finalized the details of its previously announced $33.6 million contract with the U.S. Department of Defense to sustain and enhance domestic capability for high-resolution, high-brightness OLED microdisplays, including the Company’s direct patterning technology (dPd™). All capital equipment decisions have been made, with all qualification milestones in place, as the Company enters the second year of a three-year contract. A major portion of this Defense Production Act Title III investment will be used to install production-capable dPd equipment at eMagin's Hopewell Junction, New York headquarters to improve throughput and yield of this innovative technology. The funding will enable the Company to replace and update equipment to reduce production downtime and increase yield for existing microdisplays. The Company expects to expand its U.S.-based workforce by 10% over the duration of the contract.

“eMagin is the sole U.S. manufacturer of OLED microdisplays, which we have proudly supplied to U.S. defense programs of record since 2006 to provide critical information to our soldiers on the battlefield,” said eMagin Chief Executive Officer Andrew Sculley. “We greatly appreciate the support of the U.S. military in helping to protect our vital domestic production capability and high-technology manufacturing jobs. Moreover, we have increased our manufacturing footprint by more than 25% to accommodate the new equipment that we will procure with this funding, and we are hiring additional engineers to support our R&D and production efforts.”

“This contract is a win-win for eMagin and New York,” said U.S. Senate Majority Leader Charles Schumer. “The Hudson Valley is a growing hub of technological innovation, and this funding supports new, high-quality engineering jobs and critical national security priorities.”

Since January of this year, eMagin has taken delivery of four new production tools and continues to make down payments with vendors that are building equipment requested under the government funding awards. These tools will continue to improve yields and throughput to support customer deliverables for defense programs of record, as well as eMagin’s medical, industrial, and consumer programs.

About eMagin Corporation

eMagin is the leader in OLED microdisplay technology, enabling the visualization of digital information and imagery for world-class customers in the military, consumer, medical and industrial markets. The Company invents, engineers and manufactures display technologies of the future and is the only manufacturer of OLED displays in the United States. eMagin's Direct Patterning Technology (dPd™) will transform the way the world consumes information. Since 2001, eMagin's microdisplays have been used in AR/VR, aircraft helmets, heads-up display systems, thermal scopes, night vision goggles, future weapon systems and a variety of other applications. For more information, please visit www.emagin.com.

Important Cautionary Information Regarding Forward-Looking Statements

This press 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, including those regarding eMagin Corporation's expectations, intentions, strategies and beliefs pertaining to future events or future financial performance. 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. For a more complete description of the risk factors that could cause our actual results to differ from our current expectations, including impacts of the COVID-19 pandemic, please see the section entitled "Risk Factors" in eMagin's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in any Form 10-Q filed or to be filed by eMagin, and in other documents we file with the SEC from time to time.

CONTACT

eMagin Corporation
Mark A. Koch
Chief Financial Officer
845-838-7951
mkoch@emagin.com

Sharon Merrill Associates, Inc.
Nicholas Manganaro
eman@investorrelations.com
617-542-5300