eMagin                                                           Company Release





eMagin Announces Completion of $2.5 Million Private Placement


Hopewell  Junction,  NY--March 19, 2002 -- eMagin  Corporation (AMEX: EMA) today
announced  the  completion  and receipt of  approximately  $2.5 million  private
placement of common stock with several institutional and individual investors.

The financing  consisted of  approximately  3.6 million  shares of eMagin common
stock and  warrants  to  purchase up to  approximately  1.4  million  additional
shares.  The common stock  investment  was completed at 110% of the prior 5-day
average market price on the  determination  date of February 27, 2002, which was
$0.6913 per share of common  stock.  Warrants were issued at 12O% of the above
market price,  or $0.7542 per share.  The  three-year  warrants  provided  these
investors  with the future right to purchase  0.4 shares of eMagin  common stock
for every share of Common stock purchased in this transaction.

Commenting  on this  financing  transaction,  Gary  Jones,  president  and chief
executive officer, stated, "This investment and investment commitment enables us
to continue to move our manufacturing  ramp forward and generate  increased cash
flow from sales in the near term. We will carefully  control  expenditures as we
begin to  fulfill  order  backlogs  and  increasing  rate of  sales.  We plan to
increase  our supply  inventories  and add staff,  mostly to increase  off-shift
production.  The  high  level  of  automation  of  our  microdisplay  production
equipment  should permit large  production  gains from relatively small staffing
increases."

The company  stated that it expects to use the net  proceeds of the offering for
working   capital  and  general   corporate   purposes,   and  to  help  execute
manufacturing  goals for  production  of both  consumer and  military  products.
Further details on the terms will be available in the Company's forthcoming form
8-K to be filed with the Securities and Exchange Commission.



About eMagin Corporation
eMagin Corporation  (AMEX:EMA)  designs,  develops,  and markets virtual imaging
system-on-a-chip  solutions to enable the visual display of  information,  data,
video,  and games  through a wide variety of mobile  electronic  devices and the
next-generation  of interactive  virtual  reality  systems.  The world leader in
organic light  emitting  diode  (OLED)-on-silicon  technology,  eMagin  combines
integrated circuits, microdisplays, and optics to create a virtual image similar
to the real image of a computer  monitor or large screen TV. eMagin invented the
award-winning SVGA+ and SVGA-3D OLED  microdisplays,  the worlds' first and only
single-chip color video OLED  microdisplay and embedded  controller for advanced
virtual imaging.  eMagin's  microdisplay systems are expected to enable new mass
markets for wearable personal computers, wireless Internet appliances,  portable
DVD-viewers,  digital  cameras,  and other emerging  applications  for consumer,
industrial,   and  military   applications.   OLED   microdisplays   demonstrate
performance characteristics important to military and other demanding commercial
and industrial applications including low power consumption, high brightness and
resolution,  wide dimming range, wider temperature  operating ranges,  shock and
vibration resistance, and insensitivity to high G-forces.  eMagin's intellectual
property  portfolio of more than 100 patents issued or filed is leveraged by key
OLED technology licensed from Eastman Kodak. eMagin's corporate headquarters and
microdisplay  operations are co-located with IBM on its campus in East Fishkill,
N.Y.  Optics and  system  design  facilities  are  located  at its wholly  owned
subsidiary,  Virtual Vision,  Inc., in Redmond,  WA.  Additional  information is
available at www.emagin.com.


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Forward Looking Statements
This 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.  These  statements  relate to future  events  or our  future  financial
performance.  In some cases,  you can  identify  forward-looking  statements  by
terminology such as "may," "will,"  "should,"  "expect,"  "plan,"  "anticipate,"
"believe,"  "estimate,"  "predict,"  "potential" or "continue,"  the negative of
such  terms,  or  other  comparable  terminology.   These  statements  are  only
predictions.  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.


Contacts:

Edward Flynn, 845-892-1900, eflynn@emagin.com
Susan Jones, 845-892-1900, sjones@emagin.com



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