Microvision Provides Revenue Guidance For 2006

Microvision Provides Revenue Guidance For 2006

REDMOND, Wash.--(BUSINESS WIRE)--Sept. 22, 2006--Microvision (NASDAQ:MVIS), the leader in light scanning technologies for display and imaging products, today announced that it expects to report revenue for 2006 between approximately $8.0 and $9.0 million compared to $14.7 million in 2005. The revenue will be lower than last year primarily due to delays in obtaining government and commercial revenue contracts, the decision to move away from the Nomad product, and delays in releasing new mobile connectivity solutions for the Flic(TM) product.

"We entered 2006 with a soft commercial contract revenue funnel. As we have stated previously, we've defined and realigned our business focus around the Integrated Photonics Module(TM) and we have been actively re-building a contract funnel consistent with the Company's new business strategy. We expect to be able to announce progress in this area soon," said Alexander Tokman, President and CEO of Microvision. "We also made two decisions affecting product revenue this year. First, we delayed the release of Flic connectivity software bundles until the end of August to insure that they meet our new rigorous standards for quality. Second, we divested from the unprofitable Nomad product line."

About Microvision: www.microvision.com

Headquartered in Redmond, WA, Microvision, Inc. is the world leader in the development of high-resolution displays and imaging systems based on the company's proprietary silicon micro-mirror technology. The company's technology has applications in a broad range of military, medical, industrial, professional and consumer products.

Forward-Looking Statement

Certain statements contained in this release, including those relating to future contracts and product applications, and statements using words such as "expects," are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the company's forward-looking statements include the following: capital market risks, our ability to raise additional capital when needed; market acceptance of our technologies and products; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; our dependence on the defense industry and a limited number of government development contracts; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain additional contract awards; the timing of commercial product launches and delays in product development; the ability to achieve key technical milestones in key products; dependence on third parties to develop, manufacture, sell and market our products; potential product liability claims, risks related to Lumera's business and the market for its equity and other risk factors identified from time to time in the company's SEC reports and other filings, including the Company's Annual Report on Form 10-K filed with the SEC. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or any other reason.