[eMagin Logo]                                                    Company Release


                         eMagin Receives Commitment for
                         $15 Million Continued Financing

Hopewell  Junction,  NY --March 19, 2002 eMagin  Corporation  (AMEX:  EMA) today
announced  that it has received a  commitment  to provide the Company with up to
$15 million from a private equity fund. The deal provides eMagin with the right,
but not the  obligation,  to issue shares when it wishes to over the next thirty
six months,  subject to certain  monthly  maximum  and  minimum  amounts up to a
maximum of $15  million  and in certain  circumstances  up to $20  million.  The
financing  is  subject  to the  filing  of a  registration  statement  with  the
Securities  and Exchange  Commission  covering the  registration  of the shares.
Pricing will be based upon the volume  weighted  average  price of the Company's
stock during the investment period.

     Gary Jones,  president and chief  executive  officer of eMagin,  commented,
"This financing commitment will give us the flexibility to issue equity if it is
needed to finance the expansion of the company, specifically with the rollout of
our OLED based imaging products to customers. It will serve primarily as back up
working  capital  support,  and we are  excited  about  the  chance to work with
another institutional  investor.  The availability of these funds should help us
accelerate  our  growth and  enable  our OEM  customers  to bring a new class of
imaging products to the world."

     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.

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.