OLED licensing, purchasing agreements forged between Samsung and Universal Display

Ewing, NJ and Seoul, South Korea--Universal Display Corporation (NASDAQ:PANL), manufacturers of UniversalPHOLED technology used in energy efficient organic light-emitting diode (OLED) displays and lighting, and Samsung Mobile Display (SMD), manufacturer of active-matrix OLED display products, entered into agreements under which Universal Display will license its technologies and sell its proprietary materials to SMD for use in its OLED display products.

Building on an 11 year relationship, SMD and Universal Display will continue to work closely to accelerate growth of the OLED display industry through the development of state-of-the-art, energy-efficient OLED products. "SMD is committed in leading the world display industry by offering high quality OLED products to its customers," said Soo In Cho, president and CEO of Samsung Mobile Display.

"As the world's leading developer and manufacturer of active-matrix OLEDs, Samsung Mobile Display has been a true visionary and leader in setting out a path to seize the tremendous potential for OLEDs, including through the extremely popular line of Galaxy S smart phones. SMD has been an excellent partner since we started working together over ten years ago," said Steven V. Abramson, president and CEO of Universal Display.

The companies say that OLED displays are thinner, lighter, and offer much faster response times, wider viewing angles, higher contrast ratios, better energy efficiency, and brighter, more saturated colors than LCDs.

The agreements are an OLED Patent License Agreement and a Supplemental OLED Material Purchase Agreement. Under the license agreement, Universal Display has granted SMD license rights under various patents owned or controlled by Universal Display to manufacture and sell certain phosphorescent OLED display products. In consideration of the license grant, SMD has agreed to pay Universal Display a license fee over the term of the license agreement. Under the supplemental agreement, SMD has agreed to purchase and Universal Display has agreed to supply a minimum amount of phosphorescent OLED material for SMD’s use in the manufacture of licensed products, subject to Universal Display being able to supply sufficient quantities to meet SMD's requirements. The agreements run through December 31, 2017.

SOURCE: Universal Display Corporation; www.universaldisplay.com/downloads/Press%20Releases/2011/08.23.11%20SMD%20and%20UDC%20Enter%20into%20OLED%20Pat%20Lic%20and%20Supp%20Mat%20Purch%20Agmt.pdf