Three-Five Systems Announces First Microdisplay Production Order; Samsung to Use TFS as Exclusive Supplier for SXGA Products
TEMPE, Ariz., Sep 7, 2000 /PRNewswire via COMTEX/ -- Three-Five Systems, Inc. (NYSE: TFS chart, msgs) today
announced it has received an initial multi-million dollar production order from Samsung Electro-Mechanics Co., Ltd. for
Three-Five's LCoS(TM) (Liquid Crystal on Silicon) SXGA microdisplay systems to be used in rear projection TV and monitor
applications.
"We selected Three-Five as our exclusive supplier of rear projection SXGA products because we believe Three-Five's
microdisplay technology represents the state-of-the-art in the microdisplay field for these high-volume applications,"
commented Mr. S.S. Hong, Executive Managing Director and Vice President of Samsung Electro-Mechanics. "In addition, we
think Three-Five is the only company with the manufacturing expertise to bring the products to market in the time frame and in
the volumes Samsung requires. Our company has always been a leader in developing and introducing new technology to the
world and with this product, we expect to be the first to introduce rear projection products in our target markets."
Three-Five's SXGA microdisplay is a small, high resolution display, about the size of a thumbnail, that when combined with
projection optics, has the unique advantage of being able to magnify and project an image that is much larger than the display
itself. Three-Five's microdisplay technology has the ability to provide rear-projection computer monitor and television
applications with a significant reduction in the weight and power required for these products, while improving the resolution and
allowing for larger screen sizes without increasing the depth of the product.
The purchase order is a result of a development program the two companies have been working on and a recently completed
manufacturing and supply agreement. Samsung Electro-Mechanics will showcase a demonstration of their product, enabled by
Three-Five's microdisplay imagers, at the IDMC 2000 conference and exhibition September 5-7, 2000 in Seoul, South Korea,
at China SID October 18-20 in Shanghai, China and at Comdex, November 13-17, 2000, in Las Vegas, Nevada.
"As the microdisplay products and markets continue to develop, we have set milestones for our company," remarked Jack
Saltich, Three-Five's President and CEO. "These include signing development contracts with companies interested in our
microdisplay technology for front projectors, near-to-eye applications and rear projection TVs and monitors; shipping
prototype quantities; and securing production contracts. The purchase order from Samsung shows that Three-Five is
consistently meeting the goals we have set for the company to maintain our leadership position in the microdisplay field."
Saltich stated that the manufacturing and supply agreement with Samsung Electro-Mechanics further details the relationship.
"Samsung is a large and well respected company that has the drive and the resources to bring new products to market quickly
and successfully. The agreement represents a positive working relationship between Three-Five and Samsung Electro
Mechanics, which has achieved most favorable customer status with us. We look forward to more opportunities with Samsung
in the future."
Under the agreement, Three-Five will supply Samsung Electro-Mechanics with SXGA microdisplays and the ASICs
(application specific integrated circuits). Each unit will contain three SXGA imagers, one each of red green and blue, and six
ASICs. The ASICs drive the microdisplays and are the interface between these imagers and the product-specific electronics,
such as the video card in a PC for monitor applications, the scaling engine in a projection application or the tuner electronics in
a TV. Prototype quantities have now been delivered to Samsung Electro Mechanics. Pilot production is expected to commence
during the fourth quarter of this year, with full production beginning in 2001.
The ASIC that Three-Five will be selling to Samsung Electro-Mechanics for use in projection products is newly developed.
Available to all Three-Five microdisplay customers, this ASIC was custom-designed for Three-Five's LCoS microdisplays with
resolutions ranging from XGA to HDTV.
About Three-Five Systems, Inc.(R) Three-Five Systems, Inc. is a recognized leader in the design and manufacture of liquid
crystal display (LCD) modules and technology for OEM customers in wireless communications and data collection, medical
electronics, and other commercial and consumer device marketplaces. The company has developed proprietary LCD
products, such as LCiD(TM), a sunlight readable display. In addition to traditional LCDs, the company is developing other
display technologies such as LCoS(TM) (Liquid Crystal on Silicon) microdisplays, tiny, high resolution, low power displays
designed for new markets such as HDTV, business projectors and wireless Internet appliances. At its Tempe, Arizona
headquarters, Three-Five operates the highest volume LCD manufacturing line in North America and houses the David R.
Buchanan LCD laboratory, dedicated to the development of advanced display technologies. The company's web site is located
at www.threefive.com.
About Samsung Electro-Mechanics, Co., Ltd.
SEMCO is currently the world's largest manufacturer of components used in CRT computer monitors and television sets,
including deflection yoke technology, power supplies, and tuners. With manufacturing facilities and offices in over 25 countries,
SEMCO have global business entities that include mobile communications, computer components and peripherals, optical
components, and audio/ visual products. The company's website is located at sem.samsung.co.kr
Certain statements contained in this document may be deemed to be forward- looking statements under federal securities laws,
and Three-Five Systems and Samsung Electro-Mechanics Co. intend that such forward-looking statements be subject to the
safe-harbor created thereby. Such forward-looking statements include, but are not limited to (i) the commercial sales potential
of light engines utilizing Three-Five's microdisplays; (ii) expectations regarding the timing of pilot and full production of
microdisplays, and (iii) expectations regarding the development and commercialization of new types of products based on Three-Five's microdisplays. Three-Five Systems cautions that these statements are qualified by important factors that could cause actual results to differ materially from those
reflected by the forward-looking statements contained herein. Such factors include, but are not limited to, (a) changes in the markets for the company's products and for the customers' products; (b) the failure of key technologies to deliver commercially acceptable performance; (c) the ability of Three-Five and Samsung to manufacture in full production microdisplays and products based on microdisplays, and (d) such other risks as detailed from time to time in Three-Five Systems' SEC reports, including Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Annual Reports on Form 10-K. |
