FIRST AIXTRON OVPD TOOL FOR ORGANIC LEDS SUCCESSFULLY DELIVERED TO UDC

!!! Press Release !!!

FIRST AIXTRON OVPD TOOL FOR ORGANIC LEDS SUCCESSFULLY DELIVERED TO UDC

Aachen/New Jersey, January 31st, 2002 – AIXTRON is proud to announce the delivery of the very first Organic Vapor Phase Deposition (OVPD) Production Tool to Universal Display Corporation (UDC, NASDAQ:PANL), a leading developer of flat panel display technology based in New Jersey, USA. AIXTRON developed the equipment under an exclusive license from UDC and further process optimization will continue in the frame of a Joint Development Program between UDC and AIXTRON. The planned installation for the system is taking place since early January 2002. This excellent co-operation between AIXTRON and UDC is thanks to the successful and fast development and transfer of technology developed at UDC’s research partner Princeton University, located just a few minutes away from UDC. AIXTRON is the leading manufacturer of high precision semiconductor production equipment for LEDs and other photonic and microelectronic devices.

Using the unique AIXTRON OVPD reactor concept, which is based on its proven Tricent ® platform that utilizes a patented showerhead for highly efficient and uniform deposition, AIXTRON is offering the right equipment to enter into the market for next generation displays using the unique and advantageous OVPD technology. AIXTRON’s expertise in high volume semiconductor production enables the OVPD design to be scalable like a CVD deposition process for the rapid and uniform deposition of organic material in large area substrates starting with sizes such as 6x6".

The many advantages of OVPD production technology compared to so far used inferior OLED R&D technology include higher materials utilization, increased control over the deposition process, higher potential throughput, yield and most importantly lower manufacturing costs. Specifically Organic Vapor Phase Deposition involves the use of a carrier gas stream in a hot-wall reactor at low pressure to precisely deposit thin layers of organic electronic materials on to displays. The patented process can produce thin films having far superior surface properties when compared to traditional OLED processing. This advanced OLED manufacturing process will be a key element in bringing organic electronics into high volume widespread use in the flat panel display industry. UDC's OLED displays offer significant advantages over existing display technology: They consume less power, have brighter colors, wider viewing angles and can be flexibly bent like a foil.

Mr. Steve Abramson, President and COO of UDC, comments "We are very happy to have received this OVPD tool within our precisely defined and tightly targeted schedule. Our advanced process combined with AIXTRON's tailor-made equipment technology and renowned know-how will provide the industry with those key resources for enabling successful OLED Display production."
Dr. Holger Juergensen, President and CEO of AIXTRON, adds "It is an exciting time for AIXTRON to see the success of our strategy to further broaden our equipment diversification by the addition of OVPD machines for OLEDs. We are proud of our achievement in developing in such a short time the future deposition technology for OLED and we are very keen to continue this fruitful co-operation with UDC who are providing such an innovative and interesting technology for the industry."

UNIVERSAL DISPLAY CORPORATION - is a world leader in developing and commercializing innovative OLED technologies. It is collaborating with a network of world class organizations to penetrate the electronic flat panel display market, including a long-standing relationship for innovative OLED research with Princeton University and the University of Southern California as well as the partnership with AIXTRON for the exclusive development and production of next generation OLED manufacturing equipment using UDC’s proprietary Organic Vapor Phase Deposition (OVPD) technology.

AIXTRON - is the leading supplier of semiconductor epitaxial equipment with an installed base of well over 600 systems worldwide and with representation in over 15 countries. The company provides an extensive service and support network for maintenance as well as upgrading of systems. Due to its high level of customer service worldwide, AIXTRON has been rated once more among the 2001 10 BEST in its category in VLSI Research Inc’s Customer Satisfaction Survey. In addition AIXTRON’s close and reliable partnership with its stakeholders (e.g customers, suppliers, inventors) is reflected in the inclusion of AIXTRON shares into the Dow Jones Sustainability Index 2001. AIXTRON's many customers include Agere, Alcatel, Anritsu, Arima, ATMI, Avalon, AXT, Epson, Honeywell, IQE, ITT, JDS-Uniphase, Kopin, LumiLeds, Mitsubishi, Motorola, Nortel, Optospeed, Osram, Procomp, Samsung, Showa Denko, Siemens, Sumitomo, Thales, UEC, VPEC as well as numerous Japanese corporations. AIXTRON systems have also been installed in many renowned research institutes worldwide, including CNRS, Fraunhofer Institute, ITRI-OES, JPL, Meijo University, Research Center Juelich, RIKEN, Sandia Nat. Lab, University of Tokyo. AIXTRON is very active in advancing MOCVD technology through collaborations and joint R&D projects with major partners worldwide.

For further information please contact:

Dr. Claus Ehrenbeck
Head of Investor Relations and
Corporate Communications
AIXTRON AG
Kackertstr. 15 - 17
D-52072 Aachen, Germany
Phone:+49 241 8909 444
Fax: +49 241 8909 445
E-mail: invest@aixtron.com