Kopin Receives Major HBT Production Order From Mitsubishi

Kopin Receives Major HBT Production Order From Mitsubishi

GSM Program Further Expands Kopin s Presence in the Wireless Digital Handset Market

TAUNTON, Mass. Kopin Corporation (NASDAQ:KOPN), the leading provider of gallium arsenide (GaAs) HBT transistor wafers for the wireless telecommunications market, today announced that it is manufacturing HBT transistor wafers in volume production for Mitsubishi Electric Corp. s GSM (Global System for Mobile) power amplifiers. Digital phones using Mitsubishi s HBT power amplifiers are already in the market. Mitsubishi Electric, based in Itami, Japan, is using Kopin s HBT transistors to produce power amplifiers for GSM digital wireless handsets. GSM is the global standard in the wireless handset market, representing 58 percent of digital handsets in 1998, according to industry analysts. GSM technology serves Europe, the Americas, and Asia, including mainland China. "Kopin s relationship with Mitsubishi Electric represents another key milestone in the growth of our HBT business," commented Dr. John C.C. Fan, Kopin s president and chief executive officer. "We have collaborated with Mitsubishi over the past several years in the development of a high-quality HBT process for Mitsubishi s GSM products. Moving into high-volume production for this premier GSM program is particularly gratifying and it further validates the substantial expansion of our HBT production capacity." "We are very pleased to be supporting GSM handset customers with large volumes of our HBT circuits," said Dr. Takayuki Matsukawa, general manager of Mitsubishi Electric s High Frequency and Optical Semiconductor Division. "Our team has worked very diligently with Kopin s technical and manufacturing staff to develop and optimize our HBT production process." Mitsubishi Electric s order complements Kopin s strong presence in the digital wireless handset marketplace. Kopin already supplies its GaAs HBT transistor components for digital handsets incorporating the CDMA standard. In addition, Kopin is providing HBT products for OC-48/OC-192 SONET/ATM systems, which form the backbone of the highest speed fiber optic networks. Kopin recently announced that it is quadrupling its HBT capacity for completion by the end of the first quarter of 2000. "Demand for our GaAs HBT transistors continues to grow rapidly as evidenced by this latest major program win," Dr. Fan said. "The addition of Mitsubishi further expands our customer base and our product offerings. Given the existing strength in our HBT business, our facility will reach full capacity in 2000. Consequently, we are now actively evaluating additional manufacturing locations that will allow us to properly address our future capacity needs." About Mitsubishi Electric Corporation Mitsubishi Electric Corporation is a world-class supplier of semiconductors and electronic products for computers, communications, industrial, Internet-enabled, automotive, and visual applications. Mitsubishi combines its systems-level expertise and high-level silicon process technologies to provide chip, chipset and system-on-chip solutions. Additional information on Mitsubishi Electric is available at www.mitsubishi.com. About Kopin Kopin Corporation is a leading manufacturer of gallium arsenide HBT transistor wafers and miniature flat panel displays for wireless communications and digital imaging applications. The Company s heterojunction bipolar transistors (HBT) are used to produce power amplifier circuits for wireless telephone handsets and gigabit circuits for fiber optic and Internet data transmission. Kopin s CyberDisplay family of ultra-small, high density imaging devices is designed for portable communication and consumer products including camcorders and digital cameras. Kopin s Web site is located at www.kopin.com. Statements such as those that discuss Kopin s expansion in the digital GSM handset market and expected purchases by Mitsubishi Electric Corp. are forward-looking statements made under the `safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are general economic and business conditions and growth in the gallium arsenide integrated circuit and materials industries, the impact of competitive products and pricing, availability of third-party components, availability of integrated circuit fabrication facilities, the Company s ability to successfully expand its production facilities, cost and yields associated with production of the Company s transistor wafers, loss of significant customers, acceptance of the Company s products, continuation of strategic relationships, year 2000 matters, and the other risk factors and cautionary statements listed from time to time in the Company s periodic reports and registration statements filed with the Securities and Exchange Commission, including but not limited to, the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 1998 and Form S-3 filed on October 22, 1999.

CONTACT: Kopin Corporation,
(508) 824-6696
Matthew Micci, VP, Sales & Mktg.,
mmicci@kopin.com
Richard Sneider, CFO,
rsneider@kopin.com

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(617) 542-5300
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