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News Article

Kopin Adds Eight New HBT Production Systems


Continued Expansion Supports the Company s Wireless Telecommunications Strategy



Taunton, MA. Kopin Corporation (NASDAQ:KOPN), the leading provider of gallium arsenide (GaAs) heterojunction bipolar transistors (HBT) for the wireless communications market, today announced that it has acquired eight additional HBT production systems, which will be delivered in calendar year 2000. This production expansion will bring to 16 the total number of high-volume systems installed at Kopin by the end of 2000. The company will have eight multiple 4-inch HBT systems and eight multiple 6-inch HBT systems.

The additional capacity will support Kopin s strategy to expand its position as the leading volume manufacturer of GaAs HBT transistors for the wireless communications marketplace. The Company s proprietary high-performance transistors are used to produce power amplifier circuits for CDMA, TDMA and GSM digital cellular and PCS handsets, as well as for the third-generation (3G) digital wireless standard which will support wireless Internet. Kopin s HBTs are also used in circuits for broadband OC-48 and OC-192 SONET systems, which form the backbone of the highest speed fiber optic networks.

"The demand for our high-performance HBT transistor products continues to be very strong in both the wireless handset and Internet fiberline sectors," stated Dr. John C.C. Fan, Kopin s president and chief executive officer. "In addition, our partners are designing our InGaP and AlGaAs HBT transistors into other digital telecommunications and broadband applications."

"The new systems will increase Kopin s 4-inch HBT transistor capacity to more than 300,000 wafers per year and our 6-inch capacity to 120,000 wafers per year," Fan continued. "This will enhance our ability to support the increasing product demand in these high-growth telecom markets. Kopin s commitment to our HBT circuit partners is unique, demonstrated by the quality and magnitude of the resources we have dedicated to their programs."

"Our HBT production expansion program remains on schedule and we are now embarking on an additional phase of expansion," stated Daily S. Hill, Kopin s vice president of GaAs operations. "Our goal is to offer absolute world class support to demanding, high volume HBT consumers. We have achieved excellent results on our multiple 6-inch systems, resulting in our ordering additional multiple 6-inch systems for this year. In order to achieve short cycle delivery for high-volume programs, we continue to bring on-line
state-of-the-art production systems, information technology systems, automation and other sophisticated manufacturing tools at an unprecedented rate. In addition, these new systems will augment our ability to rapidly develop new, advanced HBT structures for next generation applications."

Kopin s systems are supplied by AIXTRON AG of Aachen, Germany. The multiple 4-inch AIX2400 systems are capable of processing five 4-inch wafers per run. The multiple 6-inch AIX2600 systems can process five 6-inch or eight 4-inch wafers per run.

About Kopin

Kopin Corporation is a leading manufacturer of gallium arsenide transistor products and miniature flat panel displays for wireless communications and digital imaging applications. The Company s GaAs heterojunction bipolar transistor (HBT) devices 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, digital cameras and wireless Internet appliances. Kopin s Web site is located at www.kopin.com.

About Kopin

CyberDisplay is a trademark of Kopin.

Statements in this news release about the acquisition of additional production systems and the expansion of Kopin s GaAs HBT transistor capacity are made under `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 CyberDisplay imaging devices and HBT transistor wafers, loss of significant customers, acceptance of the Company s products, continuation of strategic relationships, year 2000 matters, and 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 prospectus dated October 22, 1999 and its Annual Report on Form 10-K for the fiscal year ended December 31, 1998.

Contact:
Kopin Corporation, Matthew Micci
Richard Sneider, CFO
Tel: (508) 824-6696
mmicci@kopin.com
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Scott Solomon, Tel: (617) 542-5300
ssolomon@sharonmerrillassoc.com

Kopin Corporation, Matthew Micci
Richard Sneider, CFO
Tel: (508) 824-6696
mmicci@kopin.com
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Scott Solomon, Tel: (617) 542-5300
ssolomon@sharonmerrillassoc.com
E-mail: ssolomon@sharonmerrillassoc.com
Web site: http://www.kopin.com
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