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UniPixel Achieves Roll-to-Roll Pilot Production of InTouch Sensors

UniPixel, Inc. (NASDAQ: UNXL), a provider of Performance Engineered Films™ to the touch screen, flexible printed electronics and display markets, has achieved roll-to-roll pilot production of its InTouch Sensors™, a projected capacitive, multi-touch sensor film.

Advancement Highlights
Achieved technical breakthrough in roll-to-roll plating process.
Transitioned from lab-based development to roll-to-roll pilot production.
Technical work streams now focused on ramping roll-to-roll manufacturing yields.
UniPixel has achieved a breakthrough in the roll-to-roll plating process, overcoming previously reported challenges through modification of hardware and chemistry configurations. The new process conditions have been successfully demonstrated in the roll-to-roll pilot production process, achieving a step-change improvement in plating fine-line conductive elements on its touch sensor film.
The company now has a fully-functional, roll-to-roll pilot production line comprised of a plating line at the company's Texas facility, and printing, final testing and packaging at the Kodak facility, a state-of-the-art manufacturing and testing facility within the Eastman Business Park in Rochester, New York. UniPixel and Kodak have begun conducting roll-to-roll pilot manufacturing and yield studies on the overall process, as well as technology transfer of the modified process to production plating assets in the Kodak facility.
"Since our last quarterly report in May, our teams have made tremendous progress in further advancing our roll-to-roll printing manufacturing process, finalizing the ink and substrate, and resolving the major roll-to-roll plating technical challenges," said Jeff Hawthorne, president and CEO of UniPixel. "Having achieved roll-to-roll pilot production capability, we are now focused on ramping overall product yields, as well as utilizing the pilot line to scale hardware, processes and manufacturing procedures, and to validate product quality criteria for volume production."
To reduce development complexity and speed the time-to-market of UniPixel's first InTouch Sensors Powered by Kodak product, UniPixel and Kodak technical work streams have been primarily focused on an initial development project for the tablet market and working closely with a certain tablet manufacturer. According to DisplaySearch, the tablet sensor segment is growing at 9% CAGR to 448 million units shipped annually by 2018.
UniPixel continues to make progress on the newly established product and technology development roadmap that next addresses the larger form factor, all-in-one PC market. The company is running concurrent development projects to support release of an all-in-one touch sensor product.
In addition to making progress with its roll-to-roll touch sensor manufacturing process, the company has advanced its Diamond Guard™ hard-coat resin technology. UniPixel has successfully coated PET film with Diamond Guard hard-coat resin at a pilot production coating facility using production-length film coating trial runs. The company continues to work to scale resin and coating technology to a full production quality, film product. Diamond Guard's pilot coating ranges from 4H to 6H hardness levels, as compared to most hard coat alternatives that range from 2H to 3H. The Diamond Guard coating performance attributes have generated attention from a number of coaters who are interested in working with the company.
The company plans to provide an update on the progress towards achieving volume touch sensor production in the second half of 2014 during the upcoming second quarter earnings call in early August.
www.unipixel.com

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