Kopin Reports Strong Second-Quarter 2010 Financial Results

"The positive momentum we experienced during the first quarter continued as we reached the mid-point of 2010," said Kopin President and Chief Executive Officer Dr. John C.C. Fan. "Within our CyberDisplay product line, revenue from military applications increased sequentially in the second quarter as anticipated, while in our III-V product line global demand for smartphones powered a more than 50% year-over-year increase. These results highlight the strategic importance of Kopin's proprietary high-performance technology and industry leading quality."

The heart of our III-V

"At the heart of our III-V, Golden-i and CyberDisplay product portfolio is wafer engineering architecture based on our core nanotechnology," Dr. Fan said. "This shared technological fabric has enabled us to strategically design and cost-effectively build a number of high performance differentiable mobile media products for numerous applications targeting the smartphone, wireless connectivity, microdisplay and consumer eyewear markets."

"Golden-i continues to successfully undergo field testing and is well-positioned to define the market for hands-free mobile content access," Dr. Fan said. "The potential end markets that can benefit from this innovative, hands-free, near-eye mobile connectivity application extend beyond industrial, medical and military to include construction, telecommunications and education. We continue to work with our partners in responding to overwhelmingly positive feedback from potential customers and developers who are working with the Golden-i Software Developer's Kits. We expect to launch this revolutionary mobile connectivity product in 2011."

The sale of smartphones

"Industry projections indicate that the sale of smartphones and other 3G and 4G mobile devices should be strong for several years," Dr. Fan said. "This trend is significant to Kopin, as these next generation wireless devices contain up to three times greater heterojunction bipolar transistor (HBT) content than is contained in a traditional wireless handset, resulting in the strong III-V revenue growth we are experiencing. Our III-V technologies, including our industry leading HBT, are fundamental to the proliferation of smartphones and other 3G and 4G mobile devices as demonstrated by our strong III-V revenue growth. Reflecting our premier industry position, we are pleased to announce a two-year extension of our HBT purchase and supply agreement with Skyworks Solutions to supply the vast majority of Skyworks' HBT wafer requirements through July 2012. To meet Skyworks Solutions' and our other valued customers increasing demands, we are continually investing in additional people, advanced technologies and the industry's most advanced growth reactors."

"Our business continues to gain momentum," Dr. Fan said. "Kopin's future looks strong with smartphone proliferation just commencing and expected to remain robust for a number of years, while TWS, our key display product category, was recently reaffirmed as a critical weapons platform by the DoD. With the positive feedback we are receiving on Golden-i, smartphone and TWS trends in our favor, the renewed agreement with Skyworks and our excellent financial position, we believe that we remain on pace to achieve our revenue guidance of $120 million to $130 million for full-year 2010 and expect 2011 will be an even better year for Kopin."

Kopin Corporation produces lightweight, power-efficient, ultra-small liquid crystal displays and III-V products, including heterojunction bipolar transistors (HBTs), that are revolutionizing the way people around the world see, hear and communicate. The Company's HBTs, which help to enhance battery life, talk time and signal clarity, have been integrated into billions of wireless handsets as well as into WiFi, VoIP and high-speed Internet data transmission systems. Kopin's proprietary III-V and display technologies are protected by more than 200 global patents and patents pending. For more information, please visit Kopin's website at www.kopin.com.