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News Article

Kopin Corporation Orders Six Additional HBT Systems From AIXTRON

Resulting Increase in Wafer Capacity to Further Strengthen Kopin s Wireless Telecom Strategy

Taunton, MA. Kopin Corporation (NASDAQ:KOPN), the leading provider of gallium arsenide (GaAs) heterojunction bipolar transistors (HBT) for the wireless communications market, said today that it has ordered six additional HBT production systems from AIXTRON AG, based in Aachen, Germany. Scheduled for delivery in calendar 2001, these systems will give Kopin 22 machines - eight capable of supporting multiple 4-inch HBT systems and 14 capable of handling multiple 6-inch HBT systems.

"These new systems will support the dynamic growth that Kopin is experiencing in orders from its wireless and fiber-optic circuit partners," said John C.C. Fan, the Company s president and chief executive officer. "As the leading volume merchant supplier of HBT transistors, Kopin is sitting in the pole position in this area. The HBT production systems we have ordered from AIXTRON will enable Kopin to focus on capacity expansion at both our Taunton headquarters and at our recently announced second manufacturing site."

Kopin s HBT transistors are used to produce power amplifier circuits for GSM, CDMA, TDMA and PCS handsets. They also are used in broadband OC-48 and OC-192 SONET systems, which form the backbone of the highest speed fiber-optic networks.

The six AIXTRON systems announced today will enable Kopin to increase its 4-inch transistor capacity by more than 30 percent, and its 6-inch capacity by more than 60 percent. With these systems, Kopin expects its 4-inch capacity to be more than 400,000 wafers per year, while its 6-inch capacity will expand to 200,000 wafers per year. Daily S. Hill, Kopin s vice president of GaAs operations, said, "Our decision to order additional HBT production systems speaks to the excellent results that we already have achieved from AIXTRON s systems to date. At a time when capacity is an issue confronting the entire wireless telephony industry, this state-of-the-art equipment gives Kopin the ability to offer its circuit partners short-cycle delivery to support their high-volume production. The automation equipment and other sophisticated manufacturing systems being added by Kopin give the Company the tools to support next-generation wireless applications."

"It is exciting to see the way Kopin is aggressively building the largest and most advanced GaAs HBT transistor fab for 6-inch production," said Holger Jurgensen, AIXTRON AG s president and chief executive officer. "Kopin has truly been a leader in this dynamic market, and we are delighted to have a strategic relationship with Kopin. We look forward to continuing to work closely with Kopin."

About AIXTRON

First established in 1983, AIXTRON is now the world s leading manufacturer of state-of-the-art MOCVD equipment for the production of compound semiconductors. In particular AIXTRON s large-scale Planetary Reactor(R) systems have led to the worldwide acceptance of CVD technology as both an efficient and valuable production tool for HBT, pHEMTs, LEDs and other electronic and optical components. AIXTRON customers, in addition to Kopin, include Alcatel, AT&T Lucent Technologies, EPI, Hewlett Packard, Honeywell, IBM, Motorola, NEC, Philips, Rockwell, Samsung, Siemens and many Japanese corporations.

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 communications and consumer products including camcorders and digital cameras and wireless Internet appliances. Kopin s Web site is located at www.kopin.com. CyberDisplay is a trademark of Kopin.

Statements in this news release about the acquisition of additional production systems from AIXTRON AG 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 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 Annual Report on Form 10-K for the year ended December 31, 1999.

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

rsneider@kopin.com

or
Sharon Merrill Associates, Inc.
Scott Solomon, Vice President
Tel: (617) 542-5300
ssolomon@investorrelations.com

 

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