Kopin Corporation (NASDAQ: KOPN), a leading developer of innovative wearable computing technologies and solutions, today provided an update on its business initiatives and reported financial results for the first quarter of 2015, ended March 28.

"2015 has started off very well from both a development and revenue standpoint," said Dr. John Fan, Kopin's President and Chief Executive Officer. "As we discussed in our year end call, two tier one customers are on target to launch wearable products this year for the enterprise headset market, and we are currently in the early stages of mass production to fill their orders. At the same time we are making good progress with both current and potential partners to bring consumer-focused products to market."

Dr. Fan continued. "Strong sales of our military products drove our first quarter product revenues. Our military products are used in the most demanding environments in the world and are a testament to the strength of our technology and manufacturing capability. It is these attributes, augmented by our knowledge of optics, ergonomics and system design, which attract the leading global companies to partner with Kopin in developing wearable products. We saw continued interest from several companies creating products for the emerging wearable enterprise and consumer markets, which drove a significant increase in partner funded development revenue in the first quarter.

"With our strong cash position and debt-free balance sheet we are in a position to make the investments needed to become a leader in the wearable market. We are pleased that the interest and momentum in wearables from the first quarter is carrying into the current quarter," concluded Dr. Fan.

First Quarter Financial Results

Total revenues for the first quarter ended March 28, 2015, were $8.6 million, compared with $4.7 million for the first quarter of 2014, primarily reflecting an increase in sales of display products for military applications and an increase in development revenues for wearable products.

Research and development expenses for the first quarter of 2015 were $4.9 million compared with $5.1 million for the first quarter of 2014.

Selling, general and administrative expenses were $4.4 million in the first quarter of 2015, compared with approximately $5.0 million in the same period of 2014, primarily reflecting a decrease in professional fees.

Net loss for the first quarter of 2015 was $3.8 million, or $0.06 per share, compared with net loss of $9.1 million, or $0.15 per share, for the same period of 2014. Net income for the 2015 period reflected the gain of approximately $800,000 on sale of certain equity investments and a non-cash gain of $1.3 million from the mark to market of derivative asset warrants that were exercised during the first quarter of 2015. All amounts are estimates and readers should refer to our Form 10-Q for the quarter ended March 28, 2015, for final disposition.

Cash used in operating activities for the first quarter of 2015 was $5.5 million. Kopin's cash, equivalents and marketable securities was $87.1 million at March 28, 2015. Kopin has no long-term debt. Our cash position should be further enhanced in January of 2016 when we expect to receive payment of the $15 million note receivable from the sale of our III-V product line and investment in Kopin Taiwan Corporation.

Financial Results Conference Call

In conjunction with its first quarter 2015 financial results, Kopin will host a teleconference call for investors and analysts at 5:00 p.m. ET today. To participate, please dial (877) 709-8150 (U.S. and Canada) or (201) 689-8354 (International). The call will also be available as a live and archived audio webcast on the "Investors" section of the Kopin website, www.kopin.com.

About Kopin

Kopin Corporation is a leading developer and provider of innovative wearable technologies and solutions for integration into head-worn computing and display systems to military, industrial and consumer customers. Kopin's technology portfolio includes ultra-small displays, optics, speech enhancement technology, system and hands-free control software, low-power ASICs, and ergonomically designed smart headset reference systems. Kopin's proprietary components and technology are protected by approximately 300 global patents and patents pending. For more information, please visit Kopin's website at www.kopin.com.

Kopin, CyberDisplay, Pupil and Golden-i are trademarks of Kopin Corporation.

Forward-Looking Statements

Statements in this press release may be considered "forward-looking" statements under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements relating to our belief that two tier one customers are on target to launch wearable products this year for the enterprise headset market; that our strong cash position and debt-free balance sheet position us to make the investments needed to become a leader in the wearable market; that the interest and momentum in wearables from the first quarter is carrying into the current quarter; ;and our expectation that our cash position should be further enhanced in January of 2016 when we expect to receive payment of the $15 million note receivable from the sale of our III-V product line and investment in Kopin Taiwan Corporation. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following:our customers may not launch their products; we may have insufficient cash to make the investments needed to become a leader in the wearable market; our momentum coming out of the first quarter may not continue in the second quarter of 2015; we may not receive the payment of the $15 million note receivable from the sale of our III-V product line and investment in Kopin Taiwan Corporation; the final amounts in the Company's Form 10-Q for the period ended March 28, 2015 may differ from the amounts included in the release above; it may take longer than the Company estimates to develop products; the Company's products may not be accepted by the market place; there may be issues that prevent the adoption or further development of the Company's wearable computing technologies; manufacturing, marketing or other issues may prevent either the adoption or acceptance of products; the Company might be adversely affected by competitive products and pricing; new product initiatives and other research and development efforts may be unsuccessful; the Company could experience the loss of significant customers; costs to produce the Company's products might increase significantly, or yields could decline; the Company's customers might be unable to ramp production volumes of their products, or the Company's product forecasts could turn out to be wrong; manufacturing delays, technical issues, economic conditions or external factors may prevent the Company from achieving its goals; and other risk factors and cautionary statements listed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the 12 months ended December 27, 2014, and the Company's subsequent filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company and only as of the date on which they are made. The Company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances occurring after the date of this report.

Kopin Corporation
Richard Sneider, 508-870-5959
Treasurer and Chief Financial Officer
RSneider@kopin.com
or
Market Street Partners
JoAnn Horne, 415-445-3233
Partner
JHorne@marketstreetpartners.com