--Signs Additional Strategic Partnership Agreement with a Major Consumer Electronics Company--

HOPEWELL JUNCTION, N.Y.--(BUSINESS WIRE)--Mar. 28, 2017-- eMagin Corporation, or the “Company” (NYSE MKT:EMAN), a leader in the development, design and manufacture of Active Matrix OLED microdisplays for high resolution imaging products, today announced financial results and corporate highlights for the fourth quarter endedDecember 31, 2016.

“I am pleased to announce that we recently signed an additional, multi-million dollar agreement with another major Tier 1 consumer electronics company. We now have in place multiple agreements with commercial partners for next generation prototype products for consumer HMD’s and expect a considerable boost to 2017 revenue from our commercial efforts, including approximately $1.5 million that we expect to recognize in the first quarter of 2017. As we continue to enhance our technological advantage through direct patterning, I believe that we are gaining the recognition we deserve for having the most comprehensive suite of high performance OLED microdisplays in the market today,” commented Andrew Sculley, President and Chief Executive Officer.

“Improvements to our direct patterning equipment and processes have led to higher throughput for our development efforts and, more importantly, brightness levels that surpass threshold requirements for both commercial and military customers. We have begun shipping limited quantities of these enhanced direct patterning displays to key strategic partners, potential partners and defense prime contractors, and are in active discussions with several parties for high volume production to support commercial demand.

“As expected, our fourth quarter revenue was impacted by lower sales volumes from the previously announced wind down of certain domestic military programs. However, we continue to develop market leading products for both military and commercial applications and were selected to participate in both the U.S. Army’s Enhanced Night Vision Goggle III (ENVG III) and the Family of Weapon Sight-Individual (FWS-I) programs. We have a solid base of business within the military and expect it will provide us with a growing, recurring revenue stream over the next several years.”