The Freedom of Virtual Displays Steve Willey President

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

“The World’s Smallest Color Display. . ” , © 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 “highvalue multimedia” from a miniature package » “Small displays” limit the mobile experience! » © 2006 Microvision, Inc. All rights Reserved. Large, Virtual Screens “unlock” power of mobile devices

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 “fullscreen” web ad or “full-page” media ads? » HUMANS LIKE THE BIG-SCREEN EXPERIENCE » Not surprising … » We have “always” depended upon our eyesight » Visual bandwidth = 22 x Audio bandwidth » We are avid consumers of multimedia! © 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 » © 2006 Microvision, Inc. All rights Reserved. “Digital content” available across all Platforms!

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” © 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 © 2006 Microvision, Inc. All rights Reserved.

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

Who would benefit from a Screen” Handset Experience? “Big » 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! © 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 – “Pico. Projectors” » » Heavily Patented Projection system © 2006 Microvision, Inc. All rights Reserved.

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

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

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

Commercial Scan-beam Display A large, Virtual Image for the User © 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. » » © 2006 Microvision, Inc. All rights Reserved. Stylish / Comfortable / Convenient Good battery life Consumer Pricing (<$500) EASY TO FAIL WITH THIS PRODUCT!

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

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

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

Personal Displays will improve … Microvision Eyewear & Projectors Volumes Microvision PROJECTORS Microvision EYEWEAR 2° Generation New Technologies New Design 1. 5 Generation 1° Generation Made for Mobile Form factor and Connectivity Off-the-Shelf 2006 © 2006 Microvision, Inc. All rights Reserved. 2007 Data Provided by: Web Mobility Ventures

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

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

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