<Press Release>
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November 2, 1998

Candescent and Sony to Jointly Develop
High-Voltage Field Emission Display (FED) Technology




November 2, 1998 - San Jose, California, and Tokyo, Japan - Candescent Technologies Corporation and Sony Corporation today announced plans to jointly develop high-voltage Field Emission Display (FED) technology for next-generation thin, flat-panel computer displays.

Computer displays can provide viewers with many types of images- including movies, broadcasts, and Internet content. They serve as an important interface that links users with a broad range of broadcast and multimedia content. Accordingly, the development of a number of technologies-including LCD, PALC, and PDP- is underway in an effort to create displays with the characteristics best suited to the various types of Audio-Video and multimedia content.

The high-voltage FED technology being developed by Candescent and Sony can be used to create full color displays in which each pixel on the screen produces light separately by a corresponding electrical discharge array (micro-electron gun). Each electrical discharge array employs semiconductor technology to individually activate a single pixel by focusing a beam of electrons from each of the cathode emitters on the individual phosphor elements. Because this is the same light generating principle used in the CRT, it is possible to achieve a similar level of brightness, viewing angle, and speed of response. Additionally, because there is no need for an electron gun mechanism or deflection plate, FED displays can be made using a thin, lightweight design that is similar to that used for LCD displays.

High-voltage FED displays employ an anode with a potential difference of about 5kV, allowing the pixels of the screen to be made from similar phosphor materials used for CRT screens, making it possible to achieve high levels of brightness. Compared to low-voltage FEDs, which use an anode with a potential difference of about 500V, high-voltage FEDs offer longer life, reduced power consumption, and better color quality.

With the advent of digital broadcasting and increased popularity of digital AV products such as DVD players, more importance will likely be placed on the quality of graphic animation and video images on computer displays. Candescent and Sony plan to jointly develop the technology necessary to establish 14-inch and larger full color high-voltage FEDs as a powerful next-generation, flat-screen display format that will be ready for volume production within the next 2 years.

"We are excited about this unique opportunity to combine Candescent's breakthrough ThinCRT technology with one of the premier market leaders in display know-how. By partnering with Sony, we have taken a giant step toward achieving our corporate goals," said Harry Marshall, Candescent's Chairman, President and CEO.

"Candescent is a leading developer of high-voltage FED technology and we're looking forward to working closely with them to bring this very promising display technology to market," said Ryosuke Ashiya, Senior Vice President of Sony Corporation's divisional Display Company.

Candescent was founded in 1991 to develop, manufacture and market the world's first ThinCRT. ThinCRTs deliver full-motion, true color video image quality in a low-power, low-cost flat-panel display. Candescent intends to become a major supplier of flat panel displays for notebook computers, communications and consumer products. Candescent's corporate offices are located at 6320 San Ignacio Ave., San Jose, California, 95119. Other information about Candescent is available via the World Wide Web at http://www.candescent.com. *Currently not accessible

Sony Corporation is a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets. Its music, pictures and computer entertainment operations make Sony one of the most comprehensive entertainment companies in the world. Sony recorded consolidated annual sales of over $51 billion for the fiscal year ended March 31, 1998, and it employs 173,000 people worldwide. Sony's Homepage URL: http://www.sony.co.jp/