#1AeMagin Making AR/VR A Reality NYSE American: EMAN Investor Presentation - May 2023#2Disclaimer Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any forward-looking statement made by us. Forward-looking statements involve a number of risks or uncertainties including, but not limited to, the risks described under the heading "Risk Factors" in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's Reports on Form 10-K for the year ended December 31, 2022. All forward-looking statements are qualified by those Risk Factors as well as the Company's "Statement of Forward-Looking Information" in such filings. All statements made by us in this presentation are further qualified in all respects by the information disclosed in the Company's filings with the Securities and Exchange Commission. These statements are only predictions. We are under no duty to update or revise any forward-looking statements to conform such statements to actual results or events, and do not intend to do so. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. These and other forward-looking statements, including the failure to consummate the proposed transaction or to make or take any filing or other action required to consummate the proposed transaction in a timely matter or at all, are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the ability of the parties to consummate the proposed transaction in a timely manner or at all; (ii) the satisfaction (or waiver) of closing conditions to the consummation of the proposed transaction, including with respect to the approval of the Company's stockholders; (iii) potential delays in the consummation of the proposed transaction; (iv) the ability of the Company to timely and successfully achieve the anticipated benefits of the proposed transaction; (v) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement; (vi) the impact of the COVID-19 pandemic and the current conflict between the Russian Federation and Ukraine on the Company's business and general economic conditions; (vii) the Company's ability to implement its business strategy; (viii) significant transaction costs associated with the proposed transaction; (ix) potential litigation relating to the proposed transaction; (x) the risk that disruptions from the proposed transaction will harm the Company's business, including current plans and operations; (xi) the ability of the Company to retain and hire key personnel; (xii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; (xiii) legislative, regulatory and economic developments affecting the Company's business; (xiv) general economic and market developments and conditions; (xv) the evolving legal, regulatory and tax regimes under which the Company operates; (xvi) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect the Company's financial performance; (xvii) restrictions during the pendency of the proposed transaction that may impact the Company's ability to pursue certain business opportunities or strategic transactions; and (xviii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, as well as the Company's response to any of the aforementioned factors. This presentation is the property of, and contains the proprietary and confidential information of the Company and is being provided solely for informational purposes. The projections, estimates and forecasts contained herein have been prepared by the Company in good faith based on assumptions believed by the Company to be reasonable at the time of preparation thereof. Forecasts and estimates regarding the Company's industry and end markets are based on third party sources the Company believes to be reliable. There can be no assurance however that any particular projection, estimate, forecast or other forward-looking information will prove to be accurate in whole or in part or that any of the information contained herein is reflective of future performance to any degree. No representation or warranty is made with respect to the information included herein. AeMagin ©2023 eMagin Corporation#3C32 JYC 8418 C7 U1 Vision: Enable the visualization of digital information and imagery with OLED technology 3 AeMagin ©2023 eMagin Corporation#41 2 3 4 5 6 A Pioneering Technology Leader with a Broad IP Portfolio A technology leader with proprietary and patented direct patterning technology (dPdTM) for ultrahigh brightness in color, and the sole U.S. manufacturer of OLED microdisplays Uniquely positioned to capitalize on growing addressable markets in military, industrial and consumer applications for high-brightness AR/VR solutions U.S. government funding of approximately $39 million for manufacturing supports equipment procurement and improvements in growth, innovation and productivity Deep applications expertise and broad IP portfolio that is aligned with diverse customer base and long- term industry trends. Well-established military and aviation market presence benefiting from modernization trends; leverageable platform for high growth opportunities in consumer and commercial end markets Highly experienced management team with industry-leading technical expertise enabling a substantial runway for value creation AeMagin © 2023 eMagin Corporation#5eMagin's Definitive Merger Agreement with Samsung Display AeMagin + SAMSUNG DISPLAY 1 2 3 4 On May 17, 2023, eMagin entered into a definitive merger agreement with Samsung Display, a subsidiary of Samsung Electronics. Under the terms of the merger agreement, all outstanding shares of eMagin common stock on a fully diluted basis will be acquired for $2.08 per share in cash, in a transaction valued at approximately $218 million. The agreement provides a significant premium for shareholders, reflects eMagin's technical achievements to date, and represents a win for customers and employees. By teaming with Samsung Display, eMagin can achieve the full potential of its next-generation microdisplay technology with a partner that can provide the resources and expertise needed to scale production. AeMagin ©2023 eMagin Corporation 5#6AeMagin Approval and Timing AeMagin + SAMSUNG DISPLAY On May 17, 2023, eMagin entered into a definitive merger agreement with Samsung Display, a subsidiary of Samsung Electronics. A special meeting of shareholders will be announced to vote on the potential transaction. The transaction is expected to close in the second half of 2023, subject to the approval by eMagin's stockholders, applicable regulatory approvals and other customary closing conditions. Action Completed Action To Be Completed ©2023 eMagin Corporation 6#7Headquarters: Employees: eMagin at a Glance The technology leader in OLED Displays STATIE Hopewell Junction, NY 100+ Revenue: Market Cap: Ticker/Exchange: $6.6M in Q1 2023 • 97% from Product Sales, 3% Contracts ● 47% U.S., 53% International • 17 countries served $166 M* EMAN / NYSE American Patents: 73 issued, 24 pending *Based on closing price on 05/19/23 and approximately 83.1 million shares outstanding. AeMagin ©2023 eMagin Corporation 24.26mm 32.964mm 25.95mm Making AR/VR a reality 100% U.S. Based Manufacturing#8Leveraging Our Military Experience to Seize New Opportunities AeMagin Establish partnerships for high-volume manufacturing Develop commercial and consumer electronics customer relationships for AR/VR opportunities Grow commercial, medical and industrial presence Expand military and aviation market share Deepen penetration of leading-edge dPdTM technology Increase capacity and production yields; expand manufacturing capability © 2023 eMagin Corporation 8#9Quarter-To-Date Q1 2023 Update: Surpassing records and Strong Backlog AeMagin Financials Product revenues for the quarter-ended March 31, 2023 totaled $6.4 million, compared with $7.0 million in the prior-year period Contract revenues for the quarter-ended March 31, 2023 totaled $0.2 million, compared with $0.3 million in the prior-year period Backlog of open orders of $16.0 million as of the end of Q1 2023 compared with $14.8 million as of the end of Q4 2022 Cash and cash equivalents of $3.8 million as of March 31, 2023 Expecting contract revenues to continue with development and scalability of dPd technology for consumer AR/VR Operating Trends • • Continuing to supply sole-sourced displays under the Enhance Night Vision Goggle-Binocular (ENVG-B) program as it ramps to volume, as well as other key military programs worldwide As of the end of the first quarter, the Company has taken delivery of seven pieces of production equipment and received $32.2 million of the total $39.1 million in U.S. government funding awarded to eMagin to enhance its manufacturing capabilities as the only U.S. provider of OLED microdisplays In July 2022, the Company took possession of additional clean room and expansion space Advancing Product Development • • Surpassed the previous record of 10,000 candela per square meter (cd/m2) by demonstrating 15,000 cd/m2 full-color WUXGA (1920x1200 pixels) prototype display using its dPd TM technology • Continue to see strong interest in high-brightness XLE and direct patterned technology Steady progress on the development efforts for dPd technology and high brightness product roadmap ©2023 eMagin Corporation 6#10Serving a Critical Need in U.S. Defense Capabilities DEPARTMENT UNITED OF STATES AeMagin DEFENS ** OF AMERICA • • Recognized by the U.S. Department of Defense (DoD) as only domestic manufacturer of OLED microdisplays and designated as cornerstone of U.S. manufacturing base Received $39.1 million in DoD funding for procurement and installation of capital equipment at the Hopewell Junction facility to enhance manufacturing capabilities and to sustain and enhance U.S. domestic capability for high- resolution, high-brightness OLED microdisplays based on proprietary dPd technology Two-year, $2.5 million development contract from U.S. Army's Program Executive Office for Simulation, Training and Instrumentation ("PEO STRI") awarded in Q2 2022 to secure U.S. source for a high-performance microdisplay that provides high brightness and visual acuity, even in bright daylight conditions. eMagin will design a backplane that will allow for significantly higher luminance of it dPd displays and leverage the full potential of the equipment acquired under the Title III and IBAS funding grants ©2023 eMagin Corporation 10#11Our OLED Technology Advantage: Lowest Power, Highest Brightness • • • Brightest OLED commercially available - monogreen with peak luminance over 40,000 cd/m² Full-color 15,000 cd/m² prototype display demonstrated in 2023 - Very high contrast – greater than 1,000,000:1 . Lower power consumption yields longer battery life . . • More compact form factor Lightweight solution Field tested for reliability and performance Nausea-free operation Superior performance and a competitive cost at higher volumes AeMagin ©2023 eMagin Corporation 11#12DD 000 a STATES UNITED OF AMERICA IN GOD WE TRUST DOLLAR AeMagin LIBERTY QUARTER D 00 A History of Technical Leadership Through Fundamental Innovations in Microdisplays Developed and shipped first full-color Active Matrix OLED in 2001 Introduced sequentially higher resolution displays: • VGA 640x480 • SVGA+ 852x600 • DSVGA 800x600 • SXGA096 1280x1024 SXGA120 WUXGA 1280x1024 1920x1200 2Kx2K 2048x2048 4KX4K • • Full-color SXGA OLED microdisplay First to develop high brightness monochrome green, now exceed 40,000 cd/m² at maximum luminance. White with color filter displays, now exceed 3,000 cd/m² Demonstrated unique and proprietary full-color direct patterned dPd™ prototype microdisplay exceeding 15,000 cd/m² in 2023 ©2023 eMagin Corporation 12#13• • • • Direct Patterning Full-Color OLED Microdisplays • AR/VR requires high brightness that is satisfied by our dPd technology Demonstrated WUXGA prototype with dPd technology - world's first 15,000cd/m² full-color OLED microdisplay Patented, full-color dPd technology applicable to any OLED microdisplay Ongoing proof-of-concept with tier-one consumer company to develop dPd displays; if successful could lead to a licensing/royalty agreement Other advances used on white with color filter, like tandem OLED, can be used to move beyond 15,000 cd/m² peak luminance • ~ Roadmap to 30,000 cd/m² full color peak luminance . Roadmap began with dPd measured at over 10,000 cd/m² • 2 year project underway to achieve 20,000 cd/m² • New equipment from $39M grant was designed to produce these higher-luminance displays in production AeMagin Direct patterning is ahead today and will remain ahead ©2023 eMagin Corporation 13#14AeMagin OLED Provides a Superior AR/VR Experience Magnification Highlights eMagin's Superior Fill Factor NO LIFEGUARD ON DUTY OLED Cell Phone Display ~600 ppi eMagin OLED Microdisplay >2,500 ppi ©2023 eMagin Corporation 14#15• The Future of AR/VR Powered by dPd 12:30PM JFK Virgin Airlines 80 New York Lunch Flight 23 12:30PM JFK Virgin Airlines 80 New York 10:31 AM On Time 3:0 SFO 72° Lunch Flight 23 60 ✈ 10:31AM On Time 30% tomorrow SFO 72° tomorrow Low Brightness AR* Conventional OLED microdisplays use white OLED with color filters • Color filters absorb ~80% of the useful light; limited brightness and inefficient High Brightness AR* • Only eMagin has Direct Patterned microdisplay technology for direct emission of red, green and blue light without color filters • Enables significantly higher brightness • Higher efficiency, much lower power consumption . eMagin dPd™ prototype microdisplays have exceeded 15,000 cd/m² *for illustrative purposes only ©2023 eMagin Corporation 15 AeMagin#16eMagin Technology Validation by Others · Demonstrations attracted consumer companies • • High brightness displays Prototype 2k x 2k HMD First Company • Vetted the technology . • Took a license to dPd technology • Next 4k design for VR • Unique backplane design • dPd brightness required Technology attracted next company New unique backplane design • dPd brightness improved to over 15,000 cd/m² AeMagin ©2023 eMagin Corporation 16#17Deep Application Expertise and Broad IP Portfolio Create Significant Barriers to Entry Patents • 73 patents issued and 24 pending • Includes silicon backplane, OLED architecture, process and packaging Key patents include ultra-high brightness directly patterned OLED displays • Know-how Includes silicon backplane, OLED architecture, process and packaging Back-plane design Anode patterning . Direct patterning of OLED • Thin film encapsulation • Packaging methodology AeMagin ©2023 eMagin Corporation 17#18Well-established Military and Aviation Business Profile Customers • Predominately sole-source supplier Differentiated performance and leader in brightness • Visible in bright sunlight . • High contrast for detail • First mover in AR/VR for domestic and foreign military applications Global market leadership – International and U.S. Army, Air Force, Special Forces, Navy/Marines • Proven track record of performing in demanding applications and environments Long-standing customer relationships and extended program and product lifecycles Military microdisplays addressable market expected to increase Accelerating activity and program wins in aviation • Trend away from LCD to OLED for better contrast and brightness AeMagin Elbit Systems BAE SYSTEMS THALES LEONARDO DRS TATA POWER L3HARRIS™ Raytheon Products E Enhanced Night Vision Goggle Helmet Display Laser Range Simulation Training Finder Devices © 2023 eMagin Corporation 18#19Commercial and Medical Markets Represent New Growth Opportunities and End-market Diversification . • Profile Products provide high reliability in stressful environments • Visualize digital information and imagery. Successful in supplying to medical imaging devices, veterinary ultrasound viewers, thermal cameras and hunting scopes LASIK Surgery AeMagin OR Cataract Surgery Family of Products fMRI Visual System Veterinary Ultrasound Hunting Scopes © 2023 eMagin Corporation 19#20DSCC www.displaysupplychain.com Display Market Share and Revenues OLED on silicon (SIOLED) will capture the largest share of shipments from 2026, with LCD in second place. AMOLED will be back thanks to Sony's PSVR2. The increase in PPI will make this technology attractive again. Revenues for AR/VR displays will grow at a CAGR of 51.8%, from $0.6B in 2021 to $7.2B in 2027. Chart excludes wearable monitor HMDs for Industrial & Medical applications AR/VR Display Market Share by Technology 100% 90% 80% Share of Shipments 70% 60% 50% 40% 30% 20% 10% 0% 2022 2023 2024 2025 2026 2027 Source: DSCC 2022 AeMagin Display Revenues by Headset Type VR and Passthrough AR See-through AR 8000 7,191 7000 LCD ■AMOLED ■ SiOLED ■MicroLED LCOS Revenues ($M) 6000 5,231 5000 4000 LBS 3000 micro LCD DLP 1,784 2000 1000 587 0 2021 2023 2025 2027 AR/VR Market grows to $7.2B; OLED Microdisplays take the largest share ©2023 eMagin Corporation 20#21Well Positioned to Capitalize on Large Commercial and Consumer Opportunities Profile ✓ Augmented reality for • Equipment repair • Factory automation • Service technicians ✓ Virtual reality for AR Forecast - M HMDs 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2019 2020 2021 2022 2023 2024 • Vehicle design • Training and simulation Consumer gaming and entertainment ✓ eMagin is the only company with technology that satisfies the key requirements: · High brightness • High speed AeMagin • • High pixels per inch High resolution Commercial Consumer VR Forecast - M HMDs 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2019 2020 2021 2022 2023 2024 ■Commercial Consumer © 2023 eMagin Corporation Source: IDC 2020 21#22Hopewell Junction, NY (Headquarters) • • • Houses own equipment for OLED microdisplay fabrication, assembly operations, R&D and product development functions eMagin is the only US-based manufacturer of OLED microdisplays Approximately $39 million in DoD awards for procurement and installation of capital equipment to enhance manufacturing and enhance dPd technology 100% U.S. Based Manufacturing AeMagin Our Manufacturing Footprint Class 10 Clean Room Operations Photo-Lithography Metal Deposition OLED Deposition Cluster In-Line Inspection Glass Lid Advanced Packaging Capabilities © 2023 eMagin Corporation 22#23Experienced Management Team of Recognized Industry Experts Andrew Sculley CEO Dr. Amal Ghosh COO Mark Koch CFO Oliver Prache SVP Product Development Interim VP of Operations • More than 20 years experience in OLED technology and manufacturing Led Kodak OLED Systems MS Physics Cornell, MBA Carnegie-Mellon Pioneering inventor of disruptive OLED microdisplay technology at eMagin and Kodak ⚫ PhD Physics MIT Past President of the prestigious Society for Information Display (SID) Previously eMagin's VP of Finance and Corporate Controller +25 years of financial experience Certified Public Accountant; BS Manhattan College OLED product commercialization pioneer at Pixtech (France) and OIS Optical Imaging Systems Diplôme d'Ingénieur from E.N.S.E.R.G.Grenoble France AeMagin ©2023 eMagin Corporation 23#241 2 3 4 5 6 A Pioneering Technology Leader with a Broad IP Portfolio A technology leader with proprietary and patented direct patterning technology (dPdTM) for ultrahigh brightness in color, and the sole U.S. manufacturer of OLED microdisplays Uniquely positioned to capitalize on growing addressable markets in military, industrial and consumer applications for high-brightness AR/VR solutions U.S. government funding of approximately $39 million for manufacturing supports equipment procurement and improvements in growth, innovation and productivity Deep applications expertise and broad IP portfolio that is aligned with diverse customer base and long- term industry trends. Well-established military and aviation market presence benefiting from modernization trends; leverageable platform for high growth opportunities in consumer and commercial end markets Highly experienced management team with industry-leading technical expertise enabling a substantial runway for value creation AeMagin © 2023 eMagin Corporation 24#25Appendices AeMagin ©2023 eMagin Corporation 25#26Revenues: Product Contract Total revenues, net Cost of revenues: Product Contract Total cost of revenues Gross profit Operating expenses: Research and development Selling, general and administrative Total operating expenses Loss from operations Other (expense) income: Change in fair value of common stock warrant liability Interest expense, net Other income, net Total other (expense) income Loss before provision for income taxes Income taxes Net Loss Loss per share, basic and diluted Weighted average number of shares outstanding: Basic and diluted AeMagin Consolidated Statement of Operations eMAGIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (unaudited) S 2023 Three Months Ended March 31, 6,368 227 6,595 S 2022 7,027 331 7,358 5,004 4,787 117 82 5,121 4,869 1,474 2,489 1,203 1,484 2,805 2,170 4,008 3,654 (2,534) (1,165) 1,146 (207) (214) 120 96 (87) 1,028 (2,621) (137) $ (2,621) S (137) (0.03) S See notes to Condensed Consolidated Financial Statements. ©2023 eMagin Corporation 81.993,294 26 72,835,629#27Consolidated Balance Sheet eMAGIN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (unaudited) ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net Account receivable-due from govemment awards Unbilled accounts receivable Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Operating lease right-of-use assets Intangibles and other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation Revolving credit facility, net Other accrued expenses Deferred revenue Operating lease liability - current Finance lease liability - current Other current liabilities Total current liabilities Other liability - long term Deferred income-government awards - long term Finance lease liability - long term Total liabilities Commitments and contingencies (Note 8) Shareholders' equity: Preferred stock, $0.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,356) stated value $1,000 per share, $0.001 par value: 10,000 shares designated and 5,356 issued and outstanding as of March 31, 2023 and 5,356 issued and outstanding as of December 31, 2022. Common stock, $0.001 par value: authorized 200,000,000 shares, issued 82,530,660 shares, outstanding 82,368,594 shares as of March 31, 2023 and issued 81,241,516 shares, outstanding 81,079,450 shares as of December 31, 2022. Additional paid-in capital Accumulated deficit Treasury stock, 162,066 shares as of March 31, 2023 and December 31, 2022. Total shareholders' equity Total liabilities and shareholders' equity AeMagin March 31, 2023 December 31, 2022 $ 3,849 $ 4,346 303 303 5,513 7,035 501 2.665 2.438 8,804 8,709 688 594 21.822 23,926 51.171 49,099 37 53 27 29 $ 73,057 $ 73,107 $ 1,199 $ 2,077 1,856 1,662 1,037 961 659 12 12 38 54 1,229 1,229 471 231 5,766 6,961 14 14 31,136 28.729 13.545 50,461 13,608 49,312 82 284,002 (260,988) (500) 22,596 $ 73,057 $ See notes to Condensed Consolidated Financial Statements. ©2023 eMagin Corporation 27 80 282,582 (258,367) (500) 23,795 73.107#28Adjusted EBITDA $ in thousands Net income (loss) Non-cash compensation Change in fair value of common stock warrant liability Depreciation and intangibles amortization expense Interest expense Adjusted EBITDA AeMagin Three Months Ended March 31, 2023 2022 $ (2,621) 256 $ (137) 165 (1,146) 734 722 207 214 $ (1,424) $ (182) ©2023 eMagin Corporation 28