Three-Five and China Display Sign Agreement

Jan. 29, 2002
Three-Five Systems, Inc., a supplier of microdisplay technology, has signed an agreement with China Display Digital Image Technology (Shanghai) Co., Ltd. to develop high-performance light engines using Three-Five's Brillian Microdisplays

Three-Five Systems, Inc., a supplier of microdisplay technology, has signed an agreement with China Display Digital Image Technology (Shanghai) Co., Ltd. to develop high-performance light engines using Three-Five's Brillian Microdisplays. The light engines, to be produced by China Display, will be targeted at multimedia projectors and rear-projection, high definition televisions manufactured by China Display and a number of different original equipment manufacturers worldwide.

Under the agreement, China Display will supply the optical module and Three-Five will provide the microdisplay imager set, consisting of three microdisplays and the associated driver electronics, to complete the high-performance light engine.

Mr. Liang Guo, Chairman and Director of China Display commented, "Three-Five Systems is a worldwide leader in the development and manufacturing of microdisplays. We at China Display are very excited about the agreement we have signed with Three-Five Systems and pleased to be working with the Brillian Microdisplays in our light engines, which will be completed this year."

China Display is a qualified member of the People's Republic of China National HDTV development project and specializes in the business of research, design, development and mass production of optical modules and engines used in LCoS-based HDTV and projector applications. In addition to marketing the light engines to OEM customers worldwide, China Display plans to develop end-products under its own name. Initial plans include the development of a high definition television and a multimedia projector initially targeted for the China market.

"This agreement is a major milestone in our goal to bring our Brillian LCoS microdisplay technology to the global marketplace," remarked Jack Saltich, Three-Five's President and CEO. "I have often said that the realization of the microdisplay industry rests initially on the validation of the technology through the introduction of products. It is evident in the formation of this agreement with China Display, for purposes of developing products based on the LCoS microdisplay, that the validation we seek is moving closer at a rapid rate. With the development of this strategic alliance between Three-Five Systems and China Display, a government sponsored LCoS developer in China, we are both taking a significant step in bringing revolutionary new consumer products not only to the China marketplace, but to the global microdisplay marketplace as well. We are pleased to be working with China Display and look forward to a mutually successful relationship as they develop a family of products based on our line of Brillian Microdisplays."

In multimedia projectors and rear-projection television applications, LCoS microdisplay-based light engines provide a significant reduction in depth, a large reduction in weight, and an improvement in resolution.

Al Davis, Three-Five's Director of Microdisplay Sales and Marketing, commented on other advantages of the company's liquid crystal on silicon technology. "Three-Five's Brillian microdisplays are positioned to have a substantial presence in today's television market technology, offering superior color, contrast, resolution and brightness -- at a substantially lower cost."

A key projection television component supplier, Corning Precision Lens, forecasts fast growth in the television market. "China continues to be the fastest growing market in the world, with sales nearly doubling from 120,000 sets in 1999 to 200,000 sets." Corning views China as one of the fastest growing markets in the world and projects "... strong sales to continue with the market growing 75% to 350,000 in 2001." ("Projection Television Past and Future - 2001 Global Consumer Market Incorporated (C) Corning Precision Lens March 2001")

Three-Five's Brillian Microdisplay technology is a thumbnail-size display with resolutions ranging from SVGA to WUXGA. The Brillian family of microdisplays can also be used in near-to-eye applications, such as Internet browsers, in large format desktop monitors, high definition television and multimedia projectors.
Stanford Resources' Microdisplays 2002 Report forecasts that "the world market for microdisplays as components will grow from $668 million in 2001 to $1.9 billion in 2007, for a compounded annual growth rate of 19% with more than 44 million units shipped in 2007."

China Display Co., Ltd. is a hi-tech company founded in 2000, based in Shanghai, China. As one of the government sponsored HDTV developers, China Display concentrates on core technology of Digital Display development including LCoS multimedia projector, rear-projector HDTV and relevant display equipment. So far the front projector HX2000A/B and 50" rear-projection TV HX2001A/B have been successfully developed and ready for mass production in 2002. A series of optical engines for projector and HDTV based on different kinds of LCoS imager are still under development. With an R&D center and two production factories, China Display will strive to be the main producer of optical engine, multimedia projector and LCoS HDTV in China. The company's web site is .

Three-Five Systems, Inc. is a leader in the design and manufacture of liquid crystal display (LCD) modules and technology for OEM customers in wireless communications and data collection, medical electronics, and other commercial and consumer device marketplaces. In addition to traditional LCDs, the company is developing other display technologies, including its line of Brillian microdisplays. These reflective liquid crystal on silicon microdisplays are tiny, high resolution, low power displays designed for new markets such as HDTV, large format monitors, multimedia projectors and wireless Internet appliances. At its Tempe, Arizona headquarters, Three-Five operates the highest volume LCD manufacturing line in North America and houses the David R. Buchanan LCD laboratory, dedicated to the development of advanced display technologies.

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