Microvision signs License and Development Agreement with Ethicon Endo-

    Business Editors

    BOTHELL, Wash.--(BUSINESS WIRE)--Jan. 3, 2005--Microvision Inc. (Nasdaq:MVIS), a leader in light scanning technologies, today announced that it has entered into a multi-phase, exclusive license and product development agreement with Ethicon Endo-Surgery, Inc., a subsidiary of Johnson & Johnson, whereby Microvision and Ethicon Endo-Surgery will collaborate to integrate Microvision's proprietary technology into certain medical products, and Ethicon Endo-Surgery will receive an option for an exclusive license to Microvision's technology for human medical applications, excluding Ophthalmology.
    Under the terms of the Agreement, Microvision will receive up to $6.2 million dollars consisting of an upfront license fee and additional fees to develop and deliver prototypes. Ethicon Endo-Surgery may elect to extend the development program to develop a commercial product for an additional fee. The Agreement also contains terms under which Microvision may supply certain products to Ethicon Endo-Surgery. Further details of the agreement are not being disclosed at this time.
    "We are very pleased to be working with one of the world's leading innovators of medical devices," said Rick Rutkowski, Microvision's CEO. "This contract and relationship represents a significant validation of the potential productization of our unique and proprietary technology for medical device applications. We have several OEM solution applications under development and we are pleased to be continuing our progress in this area."

    About Microvision: www.microvision.com

    Headquartered in Bothell, Washington, Microvision, Inc. is the world leader in the development of high-resolution displays and imaging systems based on the company's proprietary silicon micro-mirror technology. The company's technology has applications in a broad range of military, medical, industrial, professional and consumer products.

    Forward Looking Statement

    Certain statements contained in this release, including potential follow-on orders, future sales opportunities and product applications, are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the company's forward-looking statements include the following: our ability to successfully develop our technology for use in medical applications in the timeframes contemplated by the agreement with Ethicon Endo-Surgery; market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain additional contract awards and to develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products; and other risk factors identified from time to time in the company's SEC reports, including in its Annual Report on 10-K for the year ended Dec. 31, 2003, and its Quarterly Reports on Form 10-Q.

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CONTACT: Microvision Inc. Matt Nichols (media), 425-415-6657 Brian Heagler (investors), 425-415-6794

KEYWORD: WASHINGTON INDUSTRY KEYWORD: HARDWARE MEDICAL DEVICES MARKETING AGREEMENTS SOURCE: Microvision Inc.

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