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XTouch Metal Mesh Touch Sensors and Diamond Guard Hard Coat Resin (Glass Replacement Technology)

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Message: UniPixel Expands Manufacturing Capacity

Company provides manufacturing updates

SANTA CLARA, Calif., April 28, 2017 /PRNewswire/ -- UniPixel, Inc. (NASDAQ: UNXL), a provider of Performance Engineered Films™ to the touch screen and flexible electronics markets, announced today that it has taken delivery of a new custom built, high-speed coating system for the application of its Diamond Guard™ glass replacement resin compound. The system will be used to provide enhanced protection coating for its XTouch™ sensors. The system is scheduled for installation in May 2017 and is expected to commence production in June 2017.

The addition of this new manufacturing capability expands the Company's Diamond Guard capacity as the majority of its design win programs include Diamond Guard coating. Management expects the new coating system will significantly improve yields on larger sensors compared to the current coating equipment and methodology. The new equipment will also provide the coating technology required for the Company's future Diamond Touch product, which could open-up the laptop market, approximately eighty percent of which is currently not touch enabled. As computer OEMs look to reduce cost and weight from laptop computers, Diamond Guard can become a highly sought after solution as a replacement for cover glass.

Jeff Hawthorne, president and chief executive officer of UniPixel, commented, "The addition of this advanced technology equipment, in addition to yield improvement, expands our Diamond Guard application capabilities at just the right time. We are making measurable progress in applying our Diamond Guard glass replacement product on our XTouch sensors, which we expect to benefit in the form of more efficient production, less waste, and improved margins. We are scheduled to install the new high speed coating machine in May, and for it to be commissioned in June. We expect this will substantially improve yields and increase output of finished product."

"On a macro level, we are extremely busy at our Colorado Springs manufacturing facility ramping many of the 2016 design wins that are moving into volume production," continued Mr. Hawthorne. "It is important to note that many of these 2016 design win devices have new technology such as active stylus, narrow mesh widths and Diamond Guard™ coating, that were not in previous generation of devices. We are working to seamlessly accommodate those new features into our manufacturing process and have made steady progress in refining the process and increasing yields. We believe these new technology features will be incorporated into future designs and we expect initial manufacturing yields to be higher on future design wins entering volume production."

Mr. Hawthorne concluded, "We are highly focused on configuring our products to meet the demanding needs of our customers' new generation of computing devices. We have leading-edge products that are in demand and we are dedicated to meeting the expectations of those customers to produce the best devices possible."

About UniPixel 

UniPixel, Inc. (NASDAQ: UNXL) develops and markets Performance Engineered Films for the touch screen and flexible electronics markets. The Company's roll-to-roll electronics manufacturing process patterns fine line conductive elements on thin films. The company markets its technologies for touch panel sensor, cover glass replacement, and protective cover film applications under the XTouch™ and Diamond Guard™ brands. For further information, visit www.unipixel.com.

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