Kopin Reports Record Sales and Profits

First Quarter 2000 Revenue Increases 193% and Net Income Increases 1,000% over First Quarter 1999

Taunton, MA. Kopin Corporation (NASDAQ: KOPN), a leading developer and manufacturer of gallium arsenide (GaAs) heterojunction bipolar transistor (HBT) products and miniature flat panel displays, today reported financial results for the first quarter ended March 31, 2000.

Among the financial highlights in the first quarter of 2000:

--Revenue increased 193 percent to a record $19,740,000 compared to $6,730,000 for the same period in 1999, and 45 percent sequentially.

--Net income rose 1,000 percent to $2,273,000, or $0.07 per fully diluted share, from $206,000, or $0.01 per fully diluted share, in the first quarter of 1999, and 198 percent from the sequential quarter.

--Revenue from GaAs products increased 179 percent to $16,435,000 from $5,898,000 in the first quarter of 1999, and 48 percent from the fourth quarter of 1999.

--CyberDisplay revenue increased to $2,875,000, up 47 percent from $1,954,000 in the fourth quarter of 1999.

"Demand for our HBT and CyberDisplay products continues to grow at a record pace," said Dr. John C.C. Fan, Kopin s president and chief executive officer. "In both businesses, we hold the pole position with an enabling technology that is being integrated into the next generation of wireless communications and portable devices. We have continued to successfully execute our strategy to extend our leadership by expanding manufacturing capacity and application areas. We are pleased that despite our significant investments in scaling up our operations and capacity, we have been able to further improve our performance."

Among the financial highlights in the first quarter of 2000:

HBT Highlights

Kopin s HBT transistor revenue growth was paced by orders from leading power amplifier manufacturers and broadband communications providers. During the quarter, Kopin expanded its HBT manufacturing capacity and in March successfully finished the installation and expansion phase of six new production machines. The Company also ordered 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--including multi-6-inch wafer production systems. To meet customer demand, Kopin is in the process of identifying a second HBT production site.

Dr. Fan continued, "Demand for our HBT transistors continues to be very strong, which requires continued investment in the expansion of our manufacturing capacity. Adding a second site and purchasing additional wafer production systems will enable us to double our HBT production capacity again. This means shorter cycle times, improved efficiency and the ability to continue aggressively expanding our HBT business."

CyberDisplay Highlights

Kopin s CyberDisplay business also experienced stellar growth in the first quarter. The Company won a volume order to manufacture its display for new Panasonic brand camcorders introduced by Matsushita Electric Industrial Co. With this win, Kopin s CyberDisplay is now being used by two of the world s largest camcorder manufacturers. In addition, in late March, JVC expanded its CyberDisplay order to include the newest JVC digital camcorders being launched in the United States.

"As with our HBT business, capacity expansion has been a significant focus for CyberDisplay," Dr. Fan said. "We increased our production capacity tenfold last year. We see exciting potential to further expand our penetration into the digital camera and camcorder markets."

Outlook

Dr. Fan concluded, "By delivering on our goals during the first quarter, we have set the stage to make 2000 a year of substantial growth. Looking ahead, on the HBT side of our business, we are staying on our course to aggressively expand capacity by installing new production systems and bringing on a second site. We believe we are poised for continued order strength as HBT-based power amplifiers become increasingly pervasive in the wireless handset market. On the CyberDisplay side, we are focused on capturing additional socket wins to make our CyberDisplay the standard for high-resolution, miniature flat panel displays in high volume consumer electronic applications as well as in Internet accessed wireless phones. In addition, we plan to leverage this success and improve the operating efficiency of our CyberDisplay business by continuing to automate major production processes and add additional capacity."

About Kopin

Kopin Corporation is a leading manufacturer of gallium arsenide (GaAs) transistor products and miniature flat panel displays for wireless communications and portable consumer electronics. The Company s GaAs heterojunction bipolar transistors 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 ultra-portable products including camcorders, digital cameras and wireless handsets. Kopin s Web site is located at www.kopin.com.

Statements in this news release about Kopin Corporation s first quarter 2000 financial results and the Company s expectations for future growth may be considered "forward-looking" statements 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 flat panel display and 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, 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 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 year ended December 31, 1999.

Contact:
Kopin Corporation
Richard Sneider
508/824-6696
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Scott Solomon
Chief Financial Officer Vice President
617/542-5300
ssolomon@investorrelations.com Kopin Corporation
Richard Sneider
508/824-6696
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Scott Solomon
Chief Financial Officer Vice President
617/542-5300
ssolomon@investorrelations.com
E-mail: ssolomon@investorrelations.com
Web site: http://www.kopin.com