Three-Five Systems and Mitsui Expand Display Marketing Agreement

Mitsui to Utilize Sales Network in Taiwan & Korea

To Market Three-Five Systems' Liquid Crystal Display Products



Apr 16, 2001, 01:00 ET from Three-Five Systems, Inc.

    TEMPE, Ariz., April 16 /PRNewswire/ -- Three-Five Systems, Inc.
 (NYSE:   TFS) and Mitsui & Co., Ltd. of Japan have further expanded their
 business relationship by executing an additional exclusive sales agreement.
 Under the agreement, Mitsui will sell Three-Five Systems' liquid crystal
 displays (LCDs) in the Taiwan and Korea marketplaces.  The new agreement
 expands upon previous agreements the companies signed in years 1999 and 2000
 calling for Mitsui to market Three-Five's products into the Japanese market.
     Under the Agreement, Mitsui will utilize its extensive market presence to
 market and sell Three-Five's passive matrix LCDs through its locally staffed
 sales offices in Seoul, Korea and in Taipei, Taiwan.  In performing this
 Agreement, and in an effort to increase the market acceptance and demand for
 these products, both parties will work to establish merchandising as well as
 training and assistance programs for customers.
     "Mitsui's decision to strengthen the relationship with Three-Five reflects
 our continued belief that Three-Five's LCDs have tremendous potential,"
 remarked Mr. Tetsuo Tsuchiya, Mitsui's General Manager of Electronics Products
 Division.  "The response we have received in our efforts to market Three-
 Five's products in Japan throughout last year indicates to us that will see
 similar levels of interest in both Taiwan and Korea."
     Rob Harrison, Vice President of Three-Five's LCD Business Unit, said,
 "Given Mitsui's large presence in Taiwan and Korea, their capabilities and
 resources, their commitment to our products, and the importance of the Asian
 market, we are very excited about this new element in our very successful
 relationship.  We are seeing an increased interest in our displays in Taiwan
 and Korea for commercial integration into end-use products, and we expect that
 Mitsui will play an important role in our timely entry into this marketplace."
     The Far East market for passive matrix displays is estimated by Stanford
 Resources, Inc., a San Jose, California based research firm, to reach
 $3.3 billion dollars by the year 2006 (Liquid Crystal Displays Market and
 Technology Trends, Annual Display Industry Report, Tenth Edition, 2000).
 
     About Mitsui & Co., Ltd.
     Mitsui & Co. is one of the world's largest trading and industrial firms,
 with 1999 fiscal year sales of over $118 billion.  Mitsui was the first
 general or integrated trading company, established in 1876.  Mitsui's wide-
 range of products and services include; iron and steel, machinery, foodstuffs,
 non-ferrous metals, electronics and information technology, textiles,
 chemicals, energy and property development.  In the fields of electronics and
 IT, Mitsui is active in the areas of computers, semiconductors, electronic
 equipment, and computer software.  The company also is involved in the
 operation of telecommunications and telecommunication-related services
 including mobile, long-distance, international and satellite communication.
 Mitsui's core competencies include facilitating clients' international trading
 activities through a broad range of specifically tailored services.  The
 second is putting a wide spectrum of information, human, financial, and other
 resources to work with clients around the world to create new trade flows, new
 companies, and new industries.  Mitsui works to actively identify promising
 new business opportunities, assist in technology transfers, and organize joint
 ventures while investing its own capital and management time to promote the
 success of new enterprises.  The company's web site is located at
 www.mitsui.co.jp.
 
     About Three-Five Systems, Inc.(R)
     Three-Five Systems, Inc. is a recognized leader in the design and
 manufacture of liquid crystal display (LCD) modules and technology for OEM
 customers in wireless communications and data collection, medical electronics,
 and other commercial and consumer device marketplaces.  The company has
 developed proprietary LCD products, such as LCiD(TM), a sunlight readable
 display.  In addition to traditional LCDs, the company is developing other
 display technologies such as LCoS(TM) (Liquid Crystal on Silicon)
 microdisplays, tiny, high resolution, low power displays designed for new
 markets such as HDTV, business projectors and wireless Internet appliances.
 At its Tempe, Arizona headquarters, Three-Five operates the highest volume LCD
 manufacturing line in North America and houses the David R. Buchanan LCD
 laboratory, dedicated to the development of advanced display technologies.
 The company's web site is located at www.threefive.com.
 
     Certain statements contained in this press release may be deemed to be
 forward-looking statements under federal securities laws, and Three-Five
 Systems intends that such forward-looking statements be subject to the safe-
 harbor created thereby.  Such forward-looking statements include (i) the
 potential of Three-Five's passive matrix LCDs and the ability of Mitsui to
 successfully penetrate the Korean and Taiwanese LCD markets, (ii) expectation
 regarding the successful commercial integration of Three-Five's products into
 consumer end use products, and (iii) expectations regarding the amount of
 sales derived from the Far East market.  Three-Five Systems cautions that
 these statements are qualified by important factors that could cause actual
 results to differ materially from those reflected by the forward-looking
 statements contained herein.  Such factors include (a) changes in the markets
 for the company's products; (b) Three-Five's ability to obtain production
 awards after performing on its design awards, (b) Three-Five's ability to
 complete the development and commercialization of its products, (d) Three-
 Five's ability to perform under its production contracts, and (e) other risks
 as detailed from time to time in Three-Five Systems' SEC reports, including
 the company's most recent Registration Statement on Form S-3, Quarterly
 Reports on Form 10-Q, Current Reports on Form 8-K and Annual Report on Form
 10-K.
 
 

SOURCE Three-Five Systems, Inc.
    TEMPE, Ariz., April 16 /PRNewswire/ -- Three-Five Systems, Inc.
 (NYSE:   TFS) and Mitsui & Co., Ltd. of Japan have further expanded their
 business relationship by executing an additional exclusive sales agreement.
 Under the agreement, Mitsui will sell Three-Five Systems' liquid crystal
 displays (LCDs) in the Taiwan and Korea marketplaces.  The new agreement
 expands upon previous agreements the companies signed in years 1999 and 2000
 calling for Mitsui to market Three-Five's products into the Japanese market.
     Under the Agreement, Mitsui will utilize its extensive market presence to
 market and sell Three-Five's passive matrix LCDs through its locally staffed
 sales offices in Seoul, Korea and in Taipei, Taiwan.  In performing this
 Agreement, and in an effort to increase the market acceptance and demand for
 these products, both parties will work to establish merchandising as well as
 training and assistance programs for customers.
     "Mitsui's decision to strengthen the relationship with Three-Five reflects
 our continued belief that Three-Five's LCDs have tremendous potential,"
 remarked Mr. Tetsuo Tsuchiya, Mitsui's General Manager of Electronics Products
 Division.  "The response we have received in our efforts to market Three-
 Five's products in Japan throughout last year indicates to us that will see
 similar levels of interest in both Taiwan and Korea."
     Rob Harrison, Vice President of Three-Five's LCD Business Unit, said,
 "Given Mitsui's large presence in Taiwan and Korea, their capabilities and
 resources, their commitment to our products, and the importance of the Asian
 market, we are very excited about this new element in our very successful
 relationship.  We are seeing an increased interest in our displays in Taiwan
 and Korea for commercial integration into end-use products, and we expect that
 Mitsui will play an important role in our timely entry into this marketplace."
     The Far East market for passive matrix displays is estimated by Stanford
 Resources, Inc., a San Jose, California based research firm, to reach
 $3.3 billion dollars by the year 2006 (Liquid Crystal Displays Market and
 Technology Trends, Annual Display Industry Report, Tenth Edition, 2000).
 
     About Mitsui & Co., Ltd.
     Mitsui & Co. is one of the world's largest trading and industrial firms,
 with 1999 fiscal year sales of over $118 billion.  Mitsui was the first
 general or integrated trading company, established in 1876.  Mitsui's wide-
 range of products and services include; iron and steel, machinery, foodstuffs,
 non-ferrous metals, electronics and information technology, textiles,
 chemicals, energy and property development.  In the fields of electronics and
 IT, Mitsui is active in the areas of computers, semiconductors, electronic
 equipment, and computer software.  The company also is involved in the
 operation of telecommunications and telecommunication-related services
 including mobile, long-distance, international and satellite communication.
 Mitsui's core competencies include facilitating clients' international trading
 activities through a broad range of specifically tailored services.  The
 second is putting a wide spectrum of information, human, financial, and other
 resources to work with clients around the world to create new trade flows, new
 companies, and new industries.  Mitsui works to actively identify promising
 new business opportunities, assist in technology transfers, and organize joint
 ventures while investing its own capital and management time to promote the
 success of new enterprises.  The company's web site is located at
 www.mitsui.co.jp.
 
     About Three-Five Systems, Inc.(R)
     Three-Five Systems, Inc. is a recognized leader in the design and
 manufacture of liquid crystal display (LCD) modules and technology for OEM
 customers in wireless communications and data collection, medical electronics,
 and other commercial and consumer device marketplaces.  The company has
 developed proprietary LCD products, such as LCiD(TM), a sunlight readable
 display.  In addition to traditional LCDs, the company is developing other
 display technologies such as LCoS(TM) (Liquid Crystal on Silicon)
 microdisplays, tiny, high resolution, low power displays designed for new
 markets such as HDTV, business projectors and wireless Internet appliances.
 At its Tempe, Arizona headquarters, Three-Five operates the highest volume LCD
 manufacturing line in North America and houses the David R. Buchanan LCD
 laboratory, dedicated to the development of advanced display technologies.
 The company's web site is located at www.threefive.com.
 
     Certain statements contained in this press release may be deemed to be
 forward-looking statements under federal securities laws, and Three-Five
 Systems intends that such forward-looking statements be subject to the safe-
 harbor created thereby.  Such forward-looking statements include (i) the
 potential of Three-Five's passive matrix LCDs and the ability of Mitsui to
 successfully penetrate the Korean and Taiwanese LCD markets, (ii) expectation
 regarding the successful commercial integration of Three-Five's products into
 consumer end use products, and (iii) expectations regarding the amount of
 sales derived from the Far East market.  Three-Five Systems cautions that
 these statements are qualified by important factors that could cause actual
 results to differ materially from those reflected by the forward-looking
 statements contained herein.  Such factors include (a) changes in the markets
 for the company's products; (b) Three-Five's ability to obtain production
 awards after performing on its design awards, (b) Three-Five's ability to
 complete the development and commercialization of its products, (d) Three-
 Five's ability to perform under its production contracts, and (e) other risks
 as detailed from time to time in Three-Five Systems' SEC reports, including
 the company's most recent Registration Statement on Form S-3, Quarterly
 Reports on Form 10-Q, Current Reports on Form 8-K and Annual Report on Form
 10-K.
 
 SOURCE  Three-Five Systems, Inc.