NASDAQ: KOPN $ 1.41 -0.02( -1.4%) Volume: 249,221 December 14, 2018 20 min delay

Kopin Boosts HBT Wafer Manufacturing Capacity with Purchase of AIXTRON's Newest High-Volume MOCVD Systems; Additional Capacity to Support Increasing Demand for Handset and WiFi Power Amplifiers

04/13/2006

TAUNTON, Mass.--(BUSINESS WIRE)--April 13, 2006--Kopin(R) Corp. (NASDAQ: KOPN), the world's leading provider of heterojunction bipolar transistor (HBT) wafers for cellular phones and mobile communications devices, today announced that Kopin and AIXTRON AG (NASDAQ: AIXG) have completed a new multi-year purchase and supply agreement for AIXTRON's latest high-volume MOCVD (metal organic chemical vapor deposition) systems. Kopin's investment in additional capacity is being driven by increasing demand for HBT wafers.

Paul Hyland, president and CEO of AIXTRON, stated, "We are very pleased that Kopin has selected our new 12x4-inch (or 7x6-inch) 'Integrated Concept (IC) Platform' tool. This contract demonstrates the leadership of our technology and services. The IC Platform tool is the most capable MOCVD production system on the market today in terms of both capacity and flexibility. We have worked closely with partners such as Kopin to gather their valuable input in the development of the new system. Its capabilities should meet the most rigorous requirements of our customers."

"Our customers have been rapidly increasing their forecasted demand for HBT transistor wafers," said Dr. John C.C. Fan, Kopin's president and CEO. "These forecasts are based upon both anticipated significant increases in wireless handset sales, and the expectation that a greater percentage of handset sales will be from more sophisticated phones. Advanced, multimode phones require multiple power amplifiers, which in turn means more HBT transistors per handset. In order to quickly expand the capacity, we need the very best and most reliable systems delivered to us in the shortest period of time. These new systems, which are the most advanced multi-wafer machines for HBT manufacturing, will enable us to increase both our four-inch and six-inch wafer capacity, throughput and efficiency, while also reducing costs by increasing the number of HBT transistor wafers produced with each run."

The first two systems will be installed in Taunton, Mass. and are scheduled to produce HBT wafers for customers this year as part of Kopin's capacity expansion plan. The plan also includes increased utilization of existing systems at Kopin's two manufacturing sites in Taunton, Mass., and KTC in Hsinchu, Taiwan, a licensed OEM of Kopin's proprietary HBT products. The objective is to increase Kopin's HBT capacity by 50 percent in two years.

"In addition to Kopin's market-leading experience in mass production with proprietary recipes, reliable MOCVD equipment with low cost of ownership is essential to ensure consistent and cost-effective manufacturing of our HBT wafers," said Daily Hill, Kopin's senior vice president and general manager of HBT. "AIXTRON has been an integral part of our manufacturing for more than 10 years, and we are again relying upon their excellent engineering support as we integrate their newest, high-volume production systems into our manufacturing platform."

About AIXTRON

AIXTRON AG (FSE: AIX, ISIN: DE0005066203; NASDAQ: AIXG, ISIN: US0096061041) is a leading provider of deposition equipment to the semiconductor industry. The Company's technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and opto-electronic applications based on compound, silicon, or organic semiconductor materials. Such components are used in fiber optic communication systems, wireless and mobile telephony applications, optical and electronic storage devices, computing, signaling and lighting, as well as a range of other leading-edge technologies. AIXTRON AG's securities are listed on the Prime Standard market segment of the Frankfurt Stock Exchange and, as American Depositary Shares (ADS), on NASDAQ, and are included in the TecDAX index, the NASDAQ Composite Index, the MSCI World Small Cap Index and the Nature Stock Index (NAI). Founded in 1983, the Company is headquartered in Aachen, Germany. Additional information is available on AIXTRON's website at www.aixtron.com.

About Kopin

Kopin is the largest U.S. manufacturer of microdisplays to the consumer electronics, industrial and military markets and the world's largest merchant supplier of heterojunction bipolar transistor (HBT) wafers for power amplifier integrated circuits. Since introducing its award-winning microdisplay technology in 1999, Kopin has shipped more than 20 million CyberDisplays for digital cameras, personal video eyewear, camcorders, thermal weapon sights and head-mounted displays. The Company also has shipped more than 600,000 HBT wafers, which have been integrated into more than one billion wireless handsets and into WiFi, VoIP and high-speed Internet data transmission systems. Kopin's technology is protected by more than 200 global patents and patents pending. For more information, please visit Kopin's Web site at www.kopin.com.

The NanoSemiconductor Company is the registered trademark of Kopin Corporation.

Safe Harbor Statement

This news release about Kopin's capacity increase and multi-year purchase agreement between Kopin and AIXTRON AG contains "forward-looking" statements under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements relate to the anticipated demand for handset and WiFi power amplifiers; Kopin's mention of increasing forecasts and intention to supply customers with HBT production wafers; expected growth in worldwide demand for cell phone power amplifiers; the effect of this agreement on capacity planning; increased utilization of Kopin's manufacturing sites in Massachusetts; the use of KTC as OEM; and the objective of 50% increase in capacity in two years. These statements involve a number of risks and uncertainties that could materially affect future results. These risk factors include: contractual issues that might impact the production agreement; changes in demand for multi-mode wireless handsets and other devices; competing technologies might offer superior performance or be offered at a lower cost than Kopin's products; general economic and business conditions that might affect production; shortages of semiconductor materials and components that could delay production; changes in business conditions within the wireless component industry; difficulty in obtaining third-party components; issues related to customer qualification of Kopin's HBT manufacturing processes; and other risk factors and cautionary statements listed in Kopin's periodic reports and registration statements filed with the Securities and Exchange Commission. These include, but are not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and Form 10-Q for the period ended April 1, 2006.

Kopin - The NanoSemiconductor Company(R)

CONTACT: Kopin Corporation
Richard Sneider, 508-824-6696
CFO
rsneider@kopin.com
or
Beaupre & Co. Public Relations, Inc.
Christine LeCompte, 603-559-5802
SVP
lecompte@beaupre.com

SOURCE: Kopin