Business and Product Highlights

The Company continued to expand its presence in commercial, industrial and foreign military markets while winning new U.S. military programs. Additionally, the Company made improvements in technology and product design. Some of the highlights include:

• Signed a multi-year agreement with a major European defense company that is expected to exceed $3.5 millionin display sales through 2018.
• Continued to deliver displays for a major United States Marine Corps contract in support of a laser range finder program.
• Worked with U.S. Army and a defense aviation prime contractor for a major aircraft helmet modernization program.
• Delivered HD-plus resolution WUXGA display to a major medical company for use in prototyping in their next generation surgical equipment.
• Produced samples of 2K x 2K full color RGB microdisplay project to a leading consumer product company for evaluation in December 2016. Products are expected to be available for customers during the second quarter of 2017.
• Announced the introduction of consumer night vision products that are now in production and providing demo units to prospective customers.
• Completed prototyping of a new .48-inch diagonal full color XGA format microdisplay targeted at industrial and commercial markets. Initial displays are scheduled to be available in the second quarter of 2017.