Tuesday May 11, 6:31 am Eastern Time
Company Press Release
SOURCE: Microvision, Inc.
Microvision Kicks-off Strategic
Partnership with $4.5 Million Equity
Investment by Cree Research, Inc.
Companies build on success in super-bright Light Emitting Diodes to
accelerate development of key components
SEATTLE, May 11 /PRNewswire/ -- Microvision, Inc. (Nasdaq: MVIS - news, MVISW -
news), the developer of Virtual Retinal Display(TM) (VRD(TM)) technology has formed a
strategic partnering arrangement with Cree Research, Inc. (Nasdaq: CREE - news), the
world leader in the development and manufacture of semiconductor materials and electronic
devices made from silicon carbide (SiC).
Under the terms of the arrangement Cree has made a $4.5 million equity investment in
Microvision, purchasing common stock at $16.75 per share. Microvision has entered into a
$2.6 million development contract with Cree to accelerate development of semiconductor
light-emitting diodes (LEDs) and laser diodes for application in Microvision's display and
imaging products. The program will be focused on the development of blue and green laser
diodes and edge-emitting light-emitting diodes that are suitable for Microvision's
scanned-beam display systems. Microvision will gain exclusive access to component
technology developed in the program for ''scanned-beam display'' applications for three
years following completion of the initial development contract.
Because semiconductor light sources are microminiature (about the size of a grain of salt),
highly-efficient and very affordable, they offer the potential to enable very compact,
low-cost implementations of the company's proprietary Virtual Retinal Display technology.
Target applications for the LED-based microdisplays would include information displays
for next- generation mobile phones and pagers, viewfinders for digital cameras, and
wearable display peripherals for personal computers and interactive computer games. Blue
and green semiconductor laser diodes would be used in a variety of military and
professional applications that require higher display luminance.
The agreement follows Microvision's announcement in November, 1998, of a significant
breakthrough by Cree in the development of high intensity blue and green light-emitting
diodes. Historically, the brightness of off- the-shelf LEDs had been inadequate for scanned
display applications. That development was a major milestone that set the stage for the
development of low-cost, high performance micro displays.
Rick Rutkowski, President and CEO of Microvision said, ''We're delighted to have Cree as
a new shareholder and strategic partner. Cree's technological advancements in SiC LEDs
and lasers when combined with Microvision's proprietary optical scanning technology will
enable powerful solutions to meet the growing demand for a variety of new display and
imaging products. We have worked closely with Cree during the last year and achieved
some important advances in light source technology. The successful lab demonstration of
Cree's high intensity blue and green LEDs during the fourth quarter of 1998, was a major
milestone that gave Microvision the confidence needed to pursue this development more
aggressively. The partnership with Cree gives Microvision a proprietary position in a key
enabling component technology and further consolidates our position as the world's leading
innovator of scanned display systems. Microvision has aligned itself with an aggressive
partner who has emerged rapidly as a technology leader and as a market share leader in
Nitride LED devices. We believe we've made a powerful technology and business
combination.''
Neal Hunter, Cree's Chairman and CEO stated, ''We are excited about this strategic
alliance. Microvision's groundbreaking approach to scanning displays opens significant new
market and product opportunities for Cree in areas that leverage and build on our core
expertise and current development initiatives in semiconductor diode technology. We're
pleased to be an investor and a partner with Microvision: a company that has some of the
most exciting and innovative technology in the optoelectronics industry.''
Microvision, Inc., headquartered in Seattle, is the developer of the patented Virtual Retinal
Display technology that rapidly scans a beam of light into the eye, allowing the viewer to see
large, full-motion images without the need for a conventional display screen. Microvision's
objective is to be a leading provider of personal display products and imaging technology in
a broad range of military, medical, industrial, professional and consumer applications. The
company was founded in 1993. Additional information can be found at the company's
website at: mvis.com.
North Carolina based Cree Research, Inc. is the world leader in developing and
manufacturing semiconductor materials and electronic devices made from silicon carbide.
The company uses proprietary technology to make enabling compound semiconductors such
as blue and green LEDs, SiC crystals used in the production of unique gemstones and SiC
wafers that are sold for research. Cree has new product initiatives based on its expertise in
SiC, including microwave transistors for use in wireless base stations and radar, blue laser
diodes for optical storage applications and high power devices for power conditioning and
switching. For more information on Cree visit cree.com.
Forward-Looking Statement
The information set forth in this release includes ''forward-looking statements'' within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and is subject
to the safe harbor created by those sections. Certain factors that realistically could cause
results to differ materially from those projected in the company's forward-looking
statements are set forth in the company's Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, as filed with the Securities and Exchange Commission.
SOURCE: Microvision, Inc. |
