S-VISION (Montreal Exchange: ISV) was founded to develop microLCD technology. The company was incorporated in Oct. '95. In July '96 S-VISION acquired Astounding Displays and the rights to technology developed by its subcontractor, nCHIP. Financing of over $9.7 million was provided by Abrar Group Intl., a Malaysian investment bank. The company was listed on the Montreal Stock Exchange on July 29, '96 and has 40 employees.

The microLCD is a reflective, silicon based micro display designed for high resolution display applications such as multi-media projectors, work stations, monitors, and head mounted displays. S-VISON believes that its reflective display yields a brighter, sharper image since over 90% of the active surface is used for the image compared to transmissive displays which typically use 50% of the active surface which results in dull, pixelated images. Today, the microLCD supports SVGA resolution screen formats (800 x 600). The company recently introduced a design kit for its microLCD technology and has received some revenue through the sale of its design kits.

S-VISION recently signed an agreement, valued at approx. $28 million/year, with a distributor of projection systems to deliver an XGA, 1000-lumen projector which utilizes microLCD technology and has completed the assembly of a "beta" system using the 800x600 display. The XGA 1024x768 (0.97" diagonal) display has seen first silicon and supports 8-bit gray scale for true color and a 60 fps video rate. Production is expect in Q4.

The company has a pilot manufacturing facility in Twinsburg, OH which is near Kent State University, a leading center for LCD research. The facility is on-line and can produce 200ku/mth. For high volume manufacturing the company will partner with an Asian foundry. A 6 inch wafer can produce 50 displays, an 8 inch wafer, 80. Several enabling technologies for small form-factor displays are small arc light bulbs which enable high brightness in projection displays; green and blue LEDs which enable full-color displays in small viewing devices, and chemical mechanical planarization which enables extremely flat mirrors in the uLCD.

S-VISION has made tremendous headway in one year. It is tightly focused on 3 markets: multimedia projectors, high resolution monitors and projection televisions. It has already produced prototypes and has closed a large projection deal. The technology appears to be simple, elegant and manufactureable. The company is well funded and has a top notch mgmt. team. The micro LCD field is wide open, however given S-VISION's achievements, we give it a high probability of success.

Dr. Bruce McWilliams, President & CEO (previously president & founder of nCHIP)
Al Davis, Dir. of Sales & Mktg.
Ray Pinkham, Dir. of Strategic Mktg.