Three-Five Systems Announces New Microdisplay Developer Kit; XGA Kit Targets Low Cost Projection Applications

Apr 11, 2001, 01:00 ET from Three-Five Systems, Inc.

    TEMPE, Ariz., April 11 /PRNewswire/ -- Three-Five Systems, Inc.
 (NYSE:   TFS) today announced the availability of a new developer kit using
 .5" XGA resolution (1024 x 768) reflective Liquid Crystal on Silicon
 (LCoS(TM)) microdisplays.  The developer kit is designed for original
 equipment manufacturers (OEMs) designing rear and front projection
 applications, such as multimedia projectors and television, which require high
 resolution and low cost.
     A developer kit consists of three XGA resolution microdisplays and
 associated electronics required for OEMs to build and test mock-ups of planned
 products.  By building and testing pre-production versions of products,
 customers can complete a thorough evaluation of new products using Three-Five
 LCoS-based microdisplays prior to committing to production.
     "In offering a developer kit utilizing our new .5" XGA microdisplay, we
 believe we can offer a low cost, high-resolution display solution to our
 projector and television customers.  We have seen increased demand for our
 microdisplay products in these potentially high volume markets.  By offering
 an XGA, low cost display solution to these customers, we expect to see
 additional product announcements using these new microdisplays in the near
 future," said Joe Riccio, Director of Strategic Programs/Microdisplays for
 Three-Five.
     Three-Five Systems indicated that pre-production volumes of the company's
 high-resolution LCoS microdisplays have already commenced in these markets and
 volume production is expected to begin later this year.
     Three-Five's microdisplays address the market's need for high information
 content in a small sized cost-effective display package.  A microdisplay
 measures less than an inch diagonally, but can contain more than 1 million
 pixels, thereby offering excellent resolution, brightness, color depth and
 clarity.  The small size and high resolution capability of Three-Five's
 microdisplays can offer cost reductions and quality improvements for existing
 product categories, such as high-resolution flat screen computer monitors and
 large screen color televisions.
     The ability to project the microdisplay image to beyond the 36" limit
 currently attainable by cathode ray tube technology also makes possible
 high-quality, low-cost product extensions for some product categories such as
 televisions and monitors.  In addition, the microdisplay's features encourage
 the development of entirely new products, such as projectors, Internet
 appliance and browsers for cellular telephones.
     Charles W. McLaughlin of McLaughlin Consulting Group, a market research
 firm based in Menlo Park, California, commented, "Small low cost microdisplay
 modules are certainly on the critical path to lower front projector street
 prices that will expand the market for portable systems to more than 3 million
 projectors by 2005.  Three-Five will also help address supply shortages that
 have limited market growth for the past few years."
 
     About Three-Five Systems, Inc.(R)
     Three-Five Systems, Inc. (NYSE:   TFS) 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 also
 developed LCoS (Liquid Crystal on Silicon) microdisplays.  These tiny,
 high-resolution, low power displays are currently being supplied to customers
 developing revolutionary microdisplay-based products including high-definition
 television sets, business projectors, computer monitors and wireless Internet
 appliances.  At its Tempe, Arizona headquarters, Three-Five operates a design
 center, the highest volume LCD manufacturing line in North America, and the
 David R. Buchanan LCD laboratory, dedicated to the development of advanced
 display technologies.  Support for the company's growing global customer base
 is also provided at production facilities in Manila, the Philippines and
 production and design center facilities in Beijing, China.  The company's web
 site is located at www.threefive.com.
 
     Certain statements contained in this document 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, but are
 not limited to (1) expectations regarding future additional product
 announcements from Three-Five regarding microdisplays, and (2) expectations
 regarding volume productions of XGA microdisplays later this year.  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, but are
 not limited to:  (a) changes in markets or demand for LCoS-based
 microdisplays, (b) changes in markets or demand for OEM products using
 LCoS-based microdisplays, and (c) the failure of LCoS-based microdisplays and
 OEM products using LCoS microdisplays to deliver commercially acceptable
 performance, and other risks as identified from time to time in Three-Five
 Systems' SEC reports, including Quarterly Reports on Form 10-Q, Current
 Reports on Form 8-K, and Annual Reports on Form 10-K.
 
 

SOURCE Three-Five Systems, Inc.
    TEMPE, Ariz., April 11 /PRNewswire/ -- Three-Five Systems, Inc.
 (NYSE:   TFS) today announced the availability of a new developer kit using
 .5" XGA resolution (1024 x 768) reflective Liquid Crystal on Silicon
 (LCoS(TM)) microdisplays.  The developer kit is designed for original
 equipment manufacturers (OEMs) designing rear and front projection
 applications, such as multimedia projectors and television, which require high
 resolution and low cost.
     A developer kit consists of three XGA resolution microdisplays and
 associated electronics required for OEMs to build and test mock-ups of planned
 products.  By building and testing pre-production versions of products,
 customers can complete a thorough evaluation of new products using Three-Five
 LCoS-based microdisplays prior to committing to production.
     "In offering a developer kit utilizing our new .5" XGA microdisplay, we
 believe we can offer a low cost, high-resolution display solution to our
 projector and television customers.  We have seen increased demand for our
 microdisplay products in these potentially high volume markets.  By offering
 an XGA, low cost display solution to these customers, we expect to see
 additional product announcements using these new microdisplays in the near
 future," said Joe Riccio, Director of Strategic Programs/Microdisplays for
 Three-Five.
     Three-Five Systems indicated that pre-production volumes of the company's
 high-resolution LCoS microdisplays have already commenced in these markets and
 volume production is expected to begin later this year.
     Three-Five's microdisplays address the market's need for high information
 content in a small sized cost-effective display package.  A microdisplay
 measures less than an inch diagonally, but can contain more than 1 million
 pixels, thereby offering excellent resolution, brightness, color depth and
 clarity.  The small size and high resolution capability of Three-Five's
 microdisplays can offer cost reductions and quality improvements for existing
 product categories, such as high-resolution flat screen computer monitors and
 large screen color televisions.
     The ability to project the microdisplay image to beyond the 36" limit
 currently attainable by cathode ray tube technology also makes possible
 high-quality, low-cost product extensions for some product categories such as
 televisions and monitors.  In addition, the microdisplay's features encourage
 the development of entirely new products, such as projectors, Internet
 appliance and browsers for cellular telephones.
     Charles W. McLaughlin of McLaughlin Consulting Group, a market research
 firm based in Menlo Park, California, commented, "Small low cost microdisplay
 modules are certainly on the critical path to lower front projector street
 prices that will expand the market for portable systems to more than 3 million
 projectors by 2005.  Three-Five will also help address supply shortages that
 have limited market growth for the past few years."
 
     About Three-Five Systems, Inc.(R)
     Three-Five Systems, Inc. (NYSE:   TFS) 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 also
 developed LCoS (Liquid Crystal on Silicon) microdisplays.  These tiny,
 high-resolution, low power displays are currently being supplied to customers
 developing revolutionary microdisplay-based products including high-definition
 television sets, business projectors, computer monitors and wireless Internet
 appliances.  At its Tempe, Arizona headquarters, Three-Five operates a design
 center, the highest volume LCD manufacturing line in North America, and the
 David R. Buchanan LCD laboratory, dedicated to the development of advanced
 display technologies.  Support for the company's growing global customer base
 is also provided at production facilities in Manila, the Philippines and
 production and design center facilities in Beijing, China.  The company's web
 site is located at www.threefive.com.
 
     Certain statements contained in this document 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, but are
 not limited to (1) expectations regarding future additional product
 announcements from Three-Five regarding microdisplays, and (2) expectations
 regarding volume productions of XGA microdisplays later this year.  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, but are
 not limited to:  (a) changes in markets or demand for LCoS-based
 microdisplays, (b) changes in markets or demand for OEM products using
 LCoS-based microdisplays, and (c) the failure of LCoS-based microdisplays and
 OEM products using LCoS microdisplays to deliver commercially acceptable
 performance, and other risks as identified from time to time in Three-Five
 Systems' SEC reports, including Quarterly Reports on Form 10-Q, Current
 Reports on Form 8-K, and Annual Reports on Form 10-K.
 
 SOURCE  Three-Five Systems, Inc.