1. © 2006 Microvision, Inc. All rights Reserved. The “Freedom” of Virtual Displays Steve Willey President, Consumer Solutions Randy Sprague Shigeru Shinzawa Microvision, Inc. Jan. 30 2006

2. © 2006 Microvision, Inc. All rights Reserved. “The World’s Smallest Color Display.. ”,

3. © 2006 Microvision, Inc. All rights Reserved. Mobile Multimedia »Access & Quality are key 1. “Device Miniaturization is highly desirable” … portable / personalize-able solutions 2. “High-impact multimedia” is also desirable to the consumer (ex. resolution, color, etc.) »Microvision » Create displays that enable delivery of “high- value multimedia” from a miniature package » “Small displays” limit the mobile experience! » Large, Virtual Screens “unlock” power of mobile devices

4. © 2006 Microvision, Inc. All rights Reserved. The Human Being … a Consumer of Multimedia Experiences … »We pay to go to the Cinema? »We want ever-larger “Big-Screen TVs”? »We “up-size” our desktop monitor? »Advertisers pay more to place a “full- screen” web ad or “full-page” media ads? »HUMANS LIKE THE BIG-SCREEN EXPERIENCE »Not surprising … » We have “always” depended upon our eyesight » Visual bandwidth = 22x Audio bandwidth »We are avid consumers of multimedia!

5. © 2006 Microvision, Inc. All rights Reserved. Supporting Evidence from recent Las Vegas Consumer Electronics Show »Displays dominated the CE show! »Also observed » Non-stop “Convergence” » Web + Games + Cameras + TV, etc. » “Universal Platforms” have emerged 1. PC is not dead! 2. Add Living-Room Entertainment / Gaming Console 3. Add (Cell Phone) Handset » “Digital content” available across all Platforms!

6. © 2006 Microvision, Inc. All rights Reserved. Opportunity for the Mobile Industry »With.. “Convergence + Platforms + Content” » CREATE “Entirely New Experiences” for the consumer » DELIVER “New Experiences” to the consumer » EARN REASONABLE PROFITS from these services » Deliver “High Quality” experiences »BUT Vital to Unlock multimedia power of » Handsets / Media Players » Portable Game Players » Camcorders, etc. »… AND SOLVE “limitation of the 2 inch screen”

7. © 2006 Microvision, Inc. All rights Reserved. Handset Platform “Dilemma” »Next generation handsets will offer » Improved Graphics / Video » Extra Storage » Higher Bandwidth --- Everything! »Mobile TV is happening now … » A killer app!! »Handset Multimedia usage continues to grow – even in the United States »Dilemma: Handset Size vs. Experience “trade-off” may limit Consumer Acceptance

8. © 2006 Microvision, Inc. All rights Reserved. Impact of a “Big Screen” experience? SVGA 14” equivalent virtual display <QVGA 1-2” display Resolution Display Size QVGA 2-4” display

9. © 2006 Microvision, Inc. All rights Reserved. Who would benefit from a “Big Screen” Handset Experience? »Consumers » A “big screen from a small device” would enhance the user experience »Handset OEMs » New generation of Handsets + Accessories »Carriers » Offer High-Value / Premium-Priced Services »Content Providers / Advertisers » The “4 th ” screen to leverage their assets »Handsets should not diminish content value!

10. © 2006 Microvision, Inc. All rights Reserved. If large screen size is critical 1.Build larger screens / larger handsets?, OR 2.Create the Illusion of a larger screen - create a Virtual Screen for the user » Not a Direct-View, Flat-Panel LCD »Microvision ‘Single Scanning Mirror’ Platform » Wearable displays – “Eyewear” » Small, Personal Projectors – “PicoProjectors” »Heavily Patented Projection system

11. © 2006 Microvision, Inc. All rights Reserved. Heart of the Display: MEMS Scanner »Micro-Electro- Mechanical (MEMS) Scanner »Low Power »Low Voltage »Very Reliable

12. © 2006 Microvision, Inc. All rights Reserved. The Microvision difference Microvision Scanning / Projection Display Challenge: Scan a single moving mirror to create Virtual screen Red, Blue, Green Light Single Mirror Image to User Traditional Flat-Panel Handset or Wearable Display Challenge: Build hundreds of thousands “pixels” to create screen Eyewear Projector

13. © 2006 Microvision, Inc. All rights Reserved. Microvision Projector Configurations 1.Personal “Eyewear” » HD quality » Wearable as “glasses” » Plasma-quality display » Demonstration » Desk-top Quality “Display Engine” 2.Personal “Projector” » HD quality » “Accessory” - Handset sized » Demonstration: “PicoProjector” Personal Eyewear Motorola Personal Projectors

14. © 2006 Microvision, Inc. All rights Reserved. Commercial Scan-beam Display A large, Virtual Image for the User

15. © 2006 Microvision, Inc. All rights Reserved. “Mobility, Consumer Eyewear” Minimum Requirements »Wide-screen (W-VGA), HD resolution »Excellent image quality » Rich / New Colors » High Dynamic Range » No Pixelation, etc. »Stylish / Comfortable / Convenient »Good battery life »Consumer Pricing (<$500) »EASY TO FAIL WITH THIS PRODUCT!

16. © 2006 Microvision, Inc. All rights Reserved. MIT Wearable Computers Project Team Failed LCD-based Wearable Displays Web Mobility Ventures

17. © 2006 Microvision, Inc. All rights Reserved. A Target Eyewear Form-Factor

18. © 2006 Microvision, Inc. All rights Reserved. Alternate, MicroProjector Configuration A large, Virtual Image for the User

19. © 2006 Microvision, Inc. All rights Reserved. Volumes 2006 2007 1° Generation Off-the-Shelf 2° Generation New Technologies New Design Microvision PROJECTORS Microvision EYEWEAR 1.5 Generation Made for Mobile Form factor and Connectivity Personal Displays will improve … Microvision Eyewear & Projectors Data Provided by: Web Mobility Ventures

20. © 2006 Microvision, Inc. All rights Reserved. Another “Virtual” Interface Big Keyboard from a Small Device! »Virtual Keyboard product (i-Tech)

21. © 2006 Microvision, Inc. All rights Reserved. Embedded Virtual Keyboard (Not a Microvision rendering)

22. © 2006 Microvision, Inc. All rights Reserved. Virtual “Projectors and Keyboards” (Not a Microvision Rendering)

23. © 2006 Microvision, Inc. All rights Reserved. Presentation Summary »Must “manage” the consumer “experience” » With … Convergence + Universal Platform + New Content » May result in “dissatisfied consumers / lost opportunities” »“Two inch Handset Display” must be improved » “Virtual display” can offer Big-Screen from Small Handset »Microvision is committed to providing these new and heavily patented “interfaces” (Eyewear + Projector) »Microvision is seeking Partners to assist in delivery of “the right solutions” to the Japanese Market » Japanese companies, Japanese applications, etc. »Urge you to see the Demonstrations