Kopin Provides Business Update and Fourth Quarter and Full Year 2015 Operating Results

Kopin Corporation (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 fourth quarter and full year
ended December 26, 2015.

“We made solid progress in 2015 in executing our wearables strategy,
with technology development, customer acquisition and product launches,”
said Dr. John C.C. Fan, President and CEO of Kopin. “We ended the year
with the leading headset manufacturers across enterprise, consumer and
military all offering wearable products based on our technology. Our
customers range from Rockwell Collins for military avionic helmets, to
Fujitsu for enterprise applications, and to Intel/Recon for consumer
applications. The headset products target second screen applications, as
in the case of Fujitsu’s repair and maintenance product, to augmented
reality (AR) applications, such as the F-35 fighter pilot helmet, and
virtual reality (VR) applications, such as First Person Viewers (FPVs)
used with drones. These FPVs are relatively new to the market but give a
hint of where virtual reality is going, as they provide the drone user
with a first person view.”

“We maintained our strong momentum into 2016 with a successful Consumer
Electronics Show (CES), highlighted by 15 customers demonstrating
products featuring Kopin wearable components. We also displayed our own
Solos product, an AR headset designed for competitive cyclists to
monitor their activities and enhance performance. Solos smart eyewear
provides the user with a see-through image of data being transmitted
from sensors, on or near the athlete or from the cloud. Solos also
demonstrates the vast progress we have made over the last few years.
When we introduced the Golden-i® in 2011, our first wearable headset for
enterprise applications, it weighed over 600 grams. Today Solos, with
similar functionality but designed for consumers, weighs approximately
60 grams and looks like a fashionable pair of sunglasses.”

“CES was also the first time we gave public demonstrations of the
Whisper™ technology, our speech enhancement technology. Since CES we
have been very actively engaging with Tier One companies on the Whisper
technology and our new Whisper Chip. This will be a very differentiable
product and would be used with many wearable devices as a well as other
applications. We believe voice will be the next touch and Whisper
technology will play a key role.”

“In 2015, our revenues from sale of products for the wearable market
doubled over 2014 to approximately $12 million. As more companies adopt
Kopin’s view that the headset is the next smartphone and voice will
someday replace touch, we expect more new customers and industries to
develop. We have been very active in new design-in activities, including
a product for public safety which our customer is expected to debut in
the second quarter of this year. Furthermore Solos and Whisper Chips are
on track for a summer release to provide additional revenue growth,
which until now has been based on our display and display modules. Now
our heavy lifting of technology and product development is finishing as
planned and we are entering the marketing and sales phases. With our
extensive patent portfolio, design wins with Tier One customers and our
strong balance sheet, we are very well positioned to take advantage of
the growing and potentially huge wearable market,” concluded Dr. Fan.

Fourth Quarter Financial Results

Total revenues for the fourth quarter ended December 26, 2015, were $4.6
million, compared with $10.6 million for the fourth quarter of 2014.

Net loss for the fourth quarter of 2015 was $7.0 million, or $0.11 per
share, compared with net loss of $5.3 million, or $0.08 per share, for
the same period of 2014.

Full Year Financial Results

Total revenues for the 12 months ended December 26, 2015, were $32.1
million, compared with $31.8 million for the fiscal year 2014.

Research and development expenses for 2015 were $17.6 million compared
with $20.7 million for 2014.

Selling, general and administrative expenses were $18.1 million for 2015
as compared with approximately $19.9 million for 2014.

Net loss for the 12 months ended 2015 was $14.7 million, or $0.23 per
share, compared with net loss of $28.2 million, or $0.45 per share, for
2014. Included in the 2015 results of operations was a $9.2 million gain
on the sale of investments. Included in the 2014 results of operations
was a $1.3 million write-down of investments.

We have maintained our strong financial position. Kopin’s cash and
equivalents and marketable securities was $80.7 million at December 26,
2015 as compared to $90.9 million at December 27, 2014. In addition, on
January 15, 2016 we received $15 million as the final installment of the
sale of our III-V operation and investment in Kopin Taiwan Corporation.
Kopin has no long-term debt.

All amounts above are estimates and readers should refer to our Form
10-K for the year ended December 26, 2015, for final disposition.

Financial Results Conference Call

In conjunction with its year end 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 more than 300 global patents and patents pending. For more
information, please visit Kopin’s website at www.kopin.com.

Kopin, Whisper, Solos 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 statement thatFPVs give a hint of
where virtual reality is going; our expectation that Solos smart eyewear
and Whisper chip on track for a summer release; our belief that the
Whisper Chip will be a very differentiable product and used by many
wearable devices as a well as other applications; our expectation that
as more companies adopt Kopin’s view that the headset is the next
smartphone and voice will someday replace touch, we expect new customers
and industries to developincluding public safety applications
which are expected to debut in the second quarter of this year; our
belief that Solos and Whisper technology products will be in the market
by this summer to provide revenue growth which for now has been based on
our display and display modules; and our belief we are very well
positioned to take advantage of the growing wearable market . 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: Solos smart eyewear and Whisper chip
may not be ready for launch by the summer; the headset wearable market
may take longer to develop than we expect or it may not develop at all;
we may not obtain new customers; the public safety application may not
be available in the second quarter; and the final amounts in the
Company’s Form 10-K for the period ended December 26, 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 release.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160303006625/en/

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