Light Blue Optics Announces Exclusive Development Partnership with Displaytech Inc.

Light Blue Optics (LBO), the industry-leading developer of
miniature holographic laser projection systems, today announced an
exclusive development partnership with microdisplay manufacturers,
Displaytech Inc. Under the agreement, Displaytech will develop and
manufacture an ultra-compact, highly efficient and low cost
microdisplay device, exclusively for LBO.

The development partnership with LBO leverages Displaytech's
unrivalled experience with fast switching Ferroelectric Liquid Crystal
on Silicon (FLCOS) technologies. Displaytech has shipped over 16
million devices to some of the world's premier consumer electronics
companies, and has over 100 granted, licensed and pending patents to
its name.

Founded in 2004, LBO has developed an innovative miniature
projection technology that uses laser light sources and patented
holographic techniques to deliver large, full-colour, high-quality
video images that remain in focus at all distances - even on curved or
angled surfaces. As this novel approach to projection is based on
holography, it allows for easy miniaturisation and requires no moving
parts, enabling the delivery of highly robust devices ideal for
automotive and hand-held mobile applications.

Only LBO's patented technology simultaneously delivers a unique
combination of features and benefits, including:

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- Compact size - Robust design with no moving parts
- Focus free operation - Low power consumption
- Ultra-wide throw angle - Simple, low cost manufacture
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Dr Adrian Cable, LBO's co-founder and Chief Technology Officer
said, "Displaytech have all the attributes needed to meet our
requirements: world-class development skills, unrivalled FLCOS
experience and a proven supply chain. Their fast, efficient and
compact microdisplay device with integrated electronics is the ideal
component for our miniature projection devices, and we're delighted to
be working in partnership with them."

Displaytech's CEO, Dick Barton, said, "LBO is a highly driven
leading-edge technology company, with strategic goals that complement
our own. We're looking forward to bringing over twenty years of
experience in FLCOS technologies to this exciting new market for
miniature projection devices."

Light Blue Optics' CEO, Dr Chris Harris said, "Our partnership
with Displaytech builds on both companies' core competencies - LBO's
command of holographic laser projection technology and Displaytech's
proven track record of bringing quality, low cost microdisplays to
high volume markets. We believe that this is the beginning of a highly
productive, long-term relationship that will enable LBO to become the
world's leading supplier of miniature projection systems."

Notes to Editors:

Light Blue Optics (www.lightblueoptics.com)

Light Blue Optics (LBO) is a dynamic, privately-owned company,
developing miniature projection systems.

LBO's patented holographic laser projection technology delivers
large, full colour, high-quality video images that remain in focus at
all distances. The technology's efficiency, small form factor,
robustness and cost advantages make it ideally suited for deployment
in multiple markets including automotive, digital signage and consumer
electronics.

LBO is funded by a group of investors including 3i plc, the FTSE
100 listed global venture capital firm.

Displaytech Inc. (www.Displaytech.com)

Displaytech, Inc. dramatically improves display-based products by
providing high switching speed FLCOS as microdisplays that deliver
brilliant, real-life, digital images enabling next-generation consumer
electronics and storage products by providing FLCOS as a Spatial Light
Modulator (SLM). Founded in 1985, Displaytech has shipped over
16-million devices to some of the world's premier consumer electronics
companies including Kodak, Olympus, JVC, Hitachi, Konica
Minolta-Kyocera and Hewlett-Packard. The company has over 100 granted,
licensed and pending patents and has received numerous honors and
awards including being ranked as one of the fastest growing technology
companies in North America by Deloitte and Touche in 2005.