eMagin Corporation (NYSE Amex: EMAN), a leader in OLED microdisplays and virtual imaging technologies, announced today that it has signed an agreement to build its first production OLED deposition machine, one that will leverage the latest advances in the Company’s proprietary manufacturing processes. The new machine, which will be a key factor in the production of the company’s OLED microdisplays, is expected to increase OLED deposition capacity by approximately tenfold, to increase yield significantly and contribute to substantially more automated processes. The new proprietary machine replaces the company’s existing Satella, an R&D machine adapted and used by eMagin for production since its inception in 1996.

“I believe this next generation machine will play a key role in eMagin’s continued growth and success in the coming years,” commented Mr. Andrew Sculley, the Company’s president and chief executive officer. “The substantial production efficiencies to be gained from the next generation OLED deposition machine are clear, and the Satella will be used primarility by our R&D group, which will allow for a much more effective manufacturing process.”

The new machine is expected to be completed in Spring 2011, with production beginning in the Fall 2011.

About eMagin Corporation

A leader in OLED microdisplay technology and personal display systems, eMagin integrates high-resolution OLED microdisplays with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs. The company's own Z800 3DVisor provides 3D stereovision and headtracking for PC gaming, training and simulation, immersion therapy, and other applications. More information about eMagin is available at www.emagin.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding eMagin Corporation's expectations, intentions, strategies and beliefs pertaining to future events or future financial performance. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company's most recent filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in forward-looking statements. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.

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