Kopin Posts 207 Percent Gain in Second Quarter Product Revenue

For the six months ended July 1, 2000, revenue was $44,134,000 compared to $15,344,000 for the same period last year, an increase of 188 percent. Net income for the most recent six-month period was $6,088,000 or $0.09 per share, versus $352,000, or $0.01 per share, for the identical period a year earlier. Revenue from GaAs HBT products rose 187 percent to $35,922,000 from $12,538,000 for the year-ago period. Revenue from CyberDisplay products increased 442 percent to $7,720,000 for the six months ending July 1, 2000 compared to $1,424,000 for the same six-month period one year earlier.

Overall Company Outlook

"Our financial results reflect the solid growth that both our GaAs HBT and CyberDisplay businesses enjoyed during the second quarter. For the third quarter, despite the projected softening of HBT sales, we still expect some sequential total revenue growth because of the growth in our CyberDisplay business. We expect rapid growth to resume in the fourth quarter, " said Dr. John C.C. Fan, Kopin s president and chief executive officer.

HBT Outlook

Commenting on Kopin s business outlook, Fan said, "We have just completed a record quarter for sales of our gallium arsenide products and we believe the long-term fundamentals for the wireless handset market are still very positive. However, as Conexant, our largest customer, discussed last week and Nokia indicated just yesterday, it appears that third-quarter wireless handset sales will be flat. Given that outlook, we expect that our HBT sales will be flat in the third quarter, but will resume sequential growth in the fourth quarter."

CyberDisplay Outlook

Kopin continues to experience strong growth, which has been fueled by orders from companies including Matsushita (Panasonic) and JVC, as well as new orders from Samsung Electronics. In May 2000, Samsung introduced in Europe and the United States six new camcorder models equipped with the Kopin CyberDisplay 320. Companies comprising 60 percent of the world camcorder market now use Kopin s CyberDisplay. Reflecting the consistent growth of its CyberDisplay business, Kopin this morning announced a $2.3 million contract to establish CyberDisplay 1280 production capability for the U.S. Army s COMANCHE helicopter program. "During the quarter we continued to extend our position as the enabling technology for imaging applications," Fan said. "The U.S. Army s order is another example of the depth and versatility of our CyberDisplay, and of our ability to produce the display to the exacting specifications."

Strategy

"Kopin s HBT strategy is to partner with the leading circuit manufacturers in each of the world s dominant wireless handset platforms as well as in the exploding market for broadband fiber optics," Fan said. "In our CyberDisplay business, Kopin s mission is to continue to grow its market share in camcorders while securing design and production wins for digital cameras, 3G wireless handsets and other next-generation communications devices that will require state-of-the-art display content. Capacity expansion remains the key to successfully executing this strategy and to enabling Kopin to strengthen its position as a high volume producer in each of these markets. We continue to be excited about our future and believe we are well positioned to be a market leader."

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 second 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 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. -0- *T

Contact: Richard Sneider Chief Financial Officer Kopin Corporation Tel: (508) 824-6696 rsneider@kopin.com or Scott Solomon Vice President Sharon Merrill Associates, Inc. Tel: (617) 542-5300 ssolomon@investorrelations.com