KOPN: Newbridge Securities Initiates Coverage of Kopin Corp. With a Buy Rating

Jun 22, 2006, 01:00 ET from Newbridge Securities Corporation

    FORT LAUDERDALE, Fla., June 22 /PRNewswire/ -- J. Andrew Braswell,
 equity analyst with Newbridge Securities Corporation ("Newbridge"), has
 initiated coverage on Kopin Corp. (Nasdaq:   KOPN), with a "Buy" rating and a
 12 month price target of $6.50.
     Kopin develops and manufactures innovative semiconductor products using
 its proprietary process of "wafer engineering," which allows the splicing
 or layering of dissimilar semiconductor materials, thus combining the
 properties of each and providing optimized performance for specific
 applications. Today, the company uses the wafer engineering process in its
 two major product lines, heterojunction bipolar transistor (HBT) wafers and
 microdisplays. Kopin's HBT wafers feature vertically arranged transistors
 formed of as many as 14 layers of exotic semiconductor materials such as
 gallium arsenide and indium phosphide, and are fashioned into power
 amplifier chips used in wireless handsets and networking components. The
 AMLCD microdisplay business is currently in transition, as the company is
 deemphasizing sales into the camcorder market in favor of military
 applications and emerging consumer electronics devices like video eyewear.
     "Shares of Kopin are down more than 27% year-to-date as the market
 resets expectations based on disappointing 2006 guidance," stated Mr.
 Braswell. "The company is certainly facing some risks, including declining
 ASPs in both product lines and a microdisplay business that is
 transitioning to new customers and seeing the emergence of competing
 technologies. However, we believe the current share price overstates these
 risks and undervalues Kopin's technology and the earnings potential of the
 business. The stock is now trading at 2.9x sales and 1.8x book value, with
 44% of the market cap in cash. We believe shares may rise on improved
 results in the second half of the year, as military microdisplay contracts
 ramp and HBT wafer sales remain strong. Our $6.50 price target is based on
 a 4.0x price/revenue multiple to our 2007 revenue estimate."
     About Newbridge Securities Corporation
     Newbridge is a full-service securities brokerage firm and investment
 bank (Member NASD & SIPC, CRD # 104065) and a subsidiary of Newbridge
 Financial, Inc., an integrated financial services company. The Newbridge
 Research department specializes in the analysis and coverage of companies
 that have a strategic focus on nanotechnology. Newbridge Research has
 established the Newbridge Nanotechnology Index (NNIX) which currently
 consists of 24 companies, and is reconstituted and rebalanced each fiscal
 quarter. Newbridge Research also publishes a quarterly report entitled
 "Inside Nanotechnology," which reviews the growing presence and impact of
 nanotechnology, as well as certain of the companies listed on the NNIX.
 More information is available at our websites
 http://www.newbridgereports.com and http://www.newbridgesecurities.com .
     For important disclosures and information regarding the Firm's rating
 system, valuation methods and other matters of interest, please visit:
 http://www.newbridgesecurities.com/research_rpt_discl.html . Additional
 information is available upon request.

SOURCE Newbridge Securities Corporation