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To: Robert Utne who wrote (4331)2/2/1998 10:44:00 AM
From: Robert T. Tasedan  Respond to of 6570
 
This morning Yahoo News:
< Monday February 2, 8:02 am Eastern Time

Company Press Release

SOURCE: Frost & Sullivan

Dramatic Growth Expected in Military Flat Panel Display Market, Despite
Competitive Challenges

MOUNTAIN VIEW, Calif., Feb. 2 /PRNewswire/ -- In order to convey real-time, situational awareness in future military
operations, Command, Control, Communications, and Computer Intelligence (C41) will occupy a central role in U.S. force
modernization efforts. As battlefield management relies more and more upon technology, it will require fixed and portable
displays that can survive harsh environments. Although Cathode Ray Tube (CRT) monitors continue to dominate in certain
areas, the U.S. military has been replacing them with Flat Panel Displays (FPDs) for a variety of applications.

According to strategic research conducted by Frost & Sullivan (www.frost.com), U.S. Military Display Markets, the U.S.
military demand for FPDs reached $415 million in 1996, making up only a fraction of the overall consumer market. By the
year 2005, the total market for FPDs for defense-and-avionics-related applications is expected to be over $4 billion.

FPDs offer better resolution and contrast, while using less space and less power than CRTs. Flat panel displays also
provide better Mean Time Between Failure (MTBF) rates, translating into considerable savings for the Department of
Defense (DoD). In addition, applications for FPDs are many, including Global Positioning Satellite (GPS) data, weapons
platform management, Identify Friend or Foe (IFF) systems, targeting assistance, battlefield telemedicine applications and
unmanned aerial vehicle reconnaissance.

Because CRTs are becoming less advantageous in terms of supply and product life cycle, a major market trend is the drop
in number of ruggedized CRT manufacturers. As the U.S. armed services undergo a fast-paced modernization of
information networks, the DoD is also becoming more convinced that FPDs represent the future in military display
technology. While Active Matrix Liquid Displays (AMLCDs) make up the majority of current military FPDs, EL, plasma
and Field Emission Displays (FEDs) are entering this market as competitive alternatives.

Technologically, several other competing technologies are being developed. Digital Micro-Mirror Display (DMD) projection
technology is capable of producing scan rates of over 100 per second, and Plasma Addressed Liquid Crystal (PALC) uses a
gas to do the switching normally performed by Thin Film Transistors (TFTs). Research is being done on organic Light
Emitting Diodes (LED), that can conform to many shapes while delivering better resolution than current LCDs. In yet
another exciting program under development, the Virtual Retinal Display (VRD) will project situational awareness to
individual soldiers directly onto the retina of the eye.

The biggest challenge facing flat panel display manufacturers is producing FPDs at a much lower cost. The Pentagon
demands a ready supply of top quality FPDs that provide high-resolution screens for several new platforms, but at less
expense. In addition, the U.S. military wants ruggedized display manufacturers to commit to this small niche market, which
also requires them to manufacture glass in shapes ill-suited to consumer applications.

There is no question that U.S. military demand will continue to create a profitable niche market for ruggedized FPDs. The
market is expected to grow drastically as new platforms such as the Joint Strike Fighter (JSF) are developed, and as older
displays are upgraded or replaced. Although U.S. companies dominate the market in advanced electronic displays, they face
stiff competition from abroad. (That U.S. FPD firms continue to obtain original equipment manufactured glass from
Japanese manufacturers is emblematic of this trend). In some instances display manufacturers are not delivering the
finished products on time, forcing the U.S. DoD to rely on Modified Off the Shelf (MOTS) components produced overseas
for its ruggedized displays.

Frost & Sullivan's study U.S. Military Display Markets concentrates on cathode ray tubes, active matrix liquid displays,
field emission displays, plasma discharge panels and electroluminescent displays. The report provides manufacturers with
market trends, revenues forecasts, an update of current technologies, and competitive strategies.

The companies participating in this market include: AlliedSignal Aerospace Company, Applied Display Technology,
Astronautics Corporation of America, Barco Chromatics, B.F. Goodrich Aerospace, Brimar, Inc., Candescent Technologies
Incorporated, Codar Technology, Inc., Conrac Systems, Inc., Dale Electronics, Inc., Densitron Corporation of America,
Display Solutions, Dolch Computer Systems, DpiX, A Xerox New Enterprises Company, Eaton Corporation [NYSE:ETN
- news], EDL Displays Incorporated, Eldec Corporation, Electronic Designs, Inc. (EDI), Electro Plasma, Inc., FED
Corporation, Fujitsu Microelectronics, Inc., Futaba Corporation, General Digital Corporation, Grinaker Electronics, Hitachi
America Limited, Honeywell, Inc., Hughes Lexington Incorporated, Hyundai Electronics America, Image Quest
Technologies, Inc., Image Systems Corporation [Nasdaq:IMSG - news], Industrial Electronic Engineers, Inc. (IEE),
Infodex Incorporated [OTC BB:IDXI - news], Interstate Electronics Corporation, Kaiser Electronics, Kent Displays
Incorporated, Kopin Corporation [Nasdaq:KOPN - news], Lite Array Incorporated, Litton Systems Canada, Ltd., L3
Display Systems, Lockheed Martin Federal Systems, Lucas Control Systems Products, Luxell Technologies,
Magnavox/Hughes Defense Communications, Matsushita Electric Industrial Co., Ltd., MicroDisplay Corporation, Micron
Technology, Inc., Miltope Corporation, Mitsubishi Electronics America, Inc., National Integration Services (NIS), NEC
Technologies Incorporated, Noritake Company Incorporated, Optical Imaging Systems (OIS), Parker Electronic Systems,
Philips Display Components Company, Phoenix Group Incorporated, Photonics Systems, PixTech Incorporated, Planar
Standish Incorporated., Planar Systems Incorporated [Nasdaq:PLNR - news], Plasmaco Incorporated, Raytheon
Electronics Systems, RDI Computer Corporation, Rockwell Collins, Samsung Electronics America, Inc., SANDERS, A
Lockheed Martin Company, Sarnoff Corporation, Sharp Electronics Corporation, Science Applications International
Corporation, SI Diamond Technology, Inc., Smiths Industries/Aerospace & Defense Division, Solaris Systems, Tatung
Company of America Incorporated, Telegen Corporation [OTC BB:TLGN - news], Texas Optoelectronics, Inc., Thomas
Electronics Incorporated, Thomson Tubes Electroniques, Toshiba Electronics Components, Vista Controls Corporation,
Westaim Corporation, Zenith Electronics Corporation [NYSE:ZE - news], Related Companies: Active Matrix Associates,
Azonix Corporation, DisplaySearch, MetroMark, Proxima Corporation [Nasdaq:PRXM - news], UNIAX, Universal
Display Corporation [Nasdaq:PANL - news], Xerox Palo Alto Research Center, Related Organizations, National
Information Display Laboratory (NIDL), SEMI, Society for Information Display (SID), U.S. Display Consortium (USDC),
Wright Laboratory.

Frost & Sullivan is an international marketing consulting company that monitors the defense industry for market trends,
market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as
#5390-72 U.S. Desktop Computer Monitor Markets, and to support industry participants with customized consulting needs.

Visit Frost & Sullivan's web site: frost.com

Report: 5552-16 Publication Date: January 1997 Price: $2950

SOURCE: Frost & Sullivan

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Related News Categories: computer peripheral, computers, publishing, retail

>>



To: Robert Utne who wrote (4331)2/2/1998 5:10:00 PM
From: flickerful  Read Replies (1) | Respond to of 6570
 
robert.

the frost report was very interesting,
as well as dense with opportunity.
it mentioned myriad high end product
(zenith was notably the only one with a
consumer electronics history, as i recall)
from plasma panels to virtual retinal display,
beyond what zenith may already be in a
position to contribute. these technologies
are pretty amazing.

(well, zenith already invented the remote control.)

a lucrative market, indeed.