Kopin Establishes Optical Communications Products Group

Source: Kopin Corp.

Company Seeks to Expand Dominant Position in High-Speed Transistors for Optical Communications Networks

TAUNTON, Mass. Kopin Corporation (NASDAQ: KOPN), the leading provider of gallium arsenide (GaAs) heterojunction bipolar transistors (HBT) for wireless and fiber-optic telecom applications, announced today the formation of its new Optical Communications Products Group. The Group s focus will be to accelerate the development of new technologies and products for broadband telecom applications and expand Kopin s position as the largest supplier of HBT transistors for the world s highest speed fiber-optic networks.

"Kopin already has well-established products for optical communications," said Dr. John C.C. Fan, the Company s president and chief executive officer. "Kopin s HBT transistors are used by companies including Nortel and Conexant to fabricate very high speed integrated circuits - such as multiplexer, laser driver/modulator, preamplifier, clock recovery, and demultiplexer - that support the backbone of the highest speed fiber-optic networks. In fact, they have been extensively integrated into OC-48 2.5-gigabit and OC-192 10-gigabit fiber-optic systems installed worldwide. In the second quarter of 2000, the revenue for these applications accounted for approximately 15% of GaAs product revenue, an increase of more than 600% from the second quarter of 1999. We expect that our revenue from this application will continue to grow rapidly next year."

Kopin s HBTs are particularly well suited for high-speed optical communications circuits because they have exceptionally high gain/bandwidth combination, low noise, uniform device characteristics, and high breakdown voltage. As a result, they offer superior performance, much higher reliability, and better yield than competing technolgies.

"Our core technologies provide excellent components for optical communications areas," Dr. Fan continued. "The formation of this Group will enable us to focus on this rapidly growing application sector. We plan to expand our activities in research and development, form new strategic partnerships, and acquire additional technologies to complement our core strengths in order to provide a series of new transistor and component products. The new Group also complements our strategy to significantly increase HBT capacity with the addition of our state-of-the-art fab in Taunton that should be operational later this year. A significant portion of this HBT fab, which we believe will be the largest and the most advanced fab in the world, will provide support for our OC-192 fiber-optic system products and development efforts for other related optical applications such as OC-768 40-gigabit systems."

About Kopin

Kopin Corporation is a leading manufacturer of GaAs transistor products and miniature flat panel displays for advanced communications and digital imaging applications. The Company s GaAs HBT transistors are used to produce power amplifier circuits for CDMA, GSM, TDMA and PCS wireless telephone handsets as well as multi-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 Kopin Corporation s Optical Communications Products Group 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 of 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.

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