Kopin Provides Update On Second-Quarter Business Outlook

Taunton, MA. Kopin Corporation (Nasdaq: KOPN), a leading provider of III-V products and miniature flat panel displays, today announced its revised business outlook for the second quarter of 2001.

For the three months ending June 30, 2001, the Company expects revenue to be in the range of $8.7 million to $9.2 million. Kopin expects its net loss, excluding one-time adjustments, to be in the range of $0.20 to $0.23 per share. Kopin will record a net gain on the sale of investments of approximately $20 million, and an impairment charge of approximately $5 million associated primarily with the write-down of equipment. Including these one-time adjustments, Kopin expects net income to be approximately breakeven.

"As we discussed during our first-quarter conference call, weakness in the wireless and broadband markets was expected to be severe this quarter, and we anticipated that second-quarter revenues from our III-V products would be down as much as 50% sequentially from the first quarter," said Dr. John C. C. Fan, Kopin s president and chief executive officer. "However, demand was softer than we had predicted as our larger customers continue to work through excess inventories. On the positive side, our newer customers have ordered more in the quarter than we originally anticipated, but those orders will not be enough to offset an overall decline."

"As many of our peers have reported, conditions in the communications sector are very challenging, and visibility remains poor," continued Dr. Fan. "Despite these near-term circumstances, we remain confident in our III-V business and expect a turnaround to begin later this year. During the quarter, we have announced supply agreements with two new customers and are shipping products to these customers. We also continue to make exciting technological advances in the development of our InP and GAIN HBTs. These investments and our strong balance sheet position Kopin to take advantage of significant growth opportunities when the wireless and broadband sectors recover. On the CyberDisplay side, demand remains strong, and new applications continue to emerge for our state-of-the-art display technology. As a result, we remain comfortable with our second-quarter revenue expectation of approximately 40% sequential CyberDisplay revenue growth from the first quarter."

Kopin will host a conference call this morning, at 8:45 a.m. ET, to discuss this announcement. To participate in the conference call, please dial 913-981-5508. If you are unable to participate in the live call, a replay will be available for your convenience beginning at noon ET today, extending through midnight July 2. The dial-in number for the replay is 719-457-0820, passcode 532454. Today s call will also be Webcast live on the investor relations section of Kopin s Web site, www.kopin.com.

Kopin will report its second-quarter financial results on July 26, 2001.

About Kopin Kopin is a leading developer and manufacturer of high-resolution, flat panel display products and HBT wafers for telecommunications and digital imaging applications that enhance the delivery and presentation of video, voice and data. The Company has combined advanced AMLCD and integrated circuit technology to produce its CyberDisplay(TM) family of ultra-small, high-density imaging devices. The Kopin CyberDisplay family has won many international awards for innovation in the past two years, and now includes the CyberDisplay 1280, 640C, 640M, 320 and 320C - providing OEMs with powerful, high-quality display solutions for devices ranging from consumer electronics such as camcorders and digital cameras to next-generation Internet wireless handsets. Telecommunication providers are using Kopin s HBT transistor wafers for power amplifier circuits used in wireless digital phones, and gigabit circuits for broadband and Internet data transmission. For more information, please visit Kopin s Web site at www.kopin.com.

CyberDisplay is a trademark of Kopin Corporation.
Statements in this news release about Kopin Corporation s anticipated second-quarter 2001 financial results 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 fiscal year ended December 31, 2000 and 10-Q for the quarter ended March 31, 2001.

Contact: Kopin Corporation Richard Sneider Tel: (508) 824-6696 rsneider@kopin.com or Sharon Merrill Associates, Inc. Ehren Lister Tel: (617) 542-5300 elister@InvestorRelations.com