FOR IMMEDIATE RELEASE
May 12, 2003

E Ink And Philips To Show Advanced Paper-like Display Prototypes At Society For Information Display Expo

CAMBRIDGE, Mass. and AMSTERDAM, Netherlands - May 12, 2003 - E Ink Corporation, the leading developer of paper-like display technology, and Royal Philips Electronics, the world's leader in high-performance mobile displays, announced the unveiling of their latest joint prototypes at this year's Society for Information Display Exposition and Symposium in Baltimore, Md. Prototypes of the electronic ink displays will be available for viewing in E Ink's booth, number 1014, and Philips Electronics' booth, number 414, from Tuesday, May 20, through Thursday, May 22.

These engineering samples, developed for a lead customer, are representative of the first high-resolution display products using commercial-grade components. The crisp, easy-to-read display features a resolution at 160 pixels per inch (ppi), significantly higher than anything demonstrated previously. This notable advancement was enabled by continued improvement in E Ink's electronic ink display material and Philips' custom designed thin-film-transistor (TFT) backplane and driver electronics.

"This is the first time E Ink and Philips have integrated such custom components into a fully functional display and it is a major milestone in the two companies' continued progress towards commercialization," said Jim Veninger, Philips General Manager, New Displays Business Development. While the customer will ultimately design the form and function of the end product, these prototypes are being shown in a dual-display electronic reader case designed by Philips.

"These samples demonstrate the significant accomplishments of both E Ink and Philips to develop a game-changing technology into a commercially viable product with strong market interest," said Dan Button, E Ink's Vice President and General Manager. "E Ink and Philips will be the first to commercialize true paper-like displays using electronic ink technology with mass production of electronic ink modules for our lead customer in early 2004 and broad commercial availability later that year."

E Ink's electronic ink displays are renowned for their incredible paper-like readability; thin, lightweight form-factor; and low-power consumption. E Ink and Philips have been working together through a strategic partnership since February 2001 and expect to have broad commercial distribution of products in 2004.

About E Ink
E Ink's electronic ink display technology helps unleash the full power of our connected world by uniquely combining a paper-like reading experience with the ability to access information anytime, anywhere. E Ink's technology delivers the look, form and utility of paper encompassing broad design freedom, manufacturing flexibility and the ultimate in readability and portability. Electronic ink displays are currently being developed for many applications spanning handheld devices, wearable displays and transportation signage under two main product platforms: high-resolution active matrix displays and low-to-medium pixel count segmented displays. E Ink is a private corporation that includes among its investors and strategic partners TOPPAN Printing Company, Philips Electronics, The Hearst Corporation, CNI Ventures, a division of Gannett Co., Inc, Air Products and Chemicals, Inc., Vossloh Information Technologies, Motorola, Inc., and Lucent Technologies. E Ink news can be found at www.eink.com/news.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 170,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.

E Ink and Phillips
Website URL: www.eink.com