Universal Display Corporation and Novaled Team to Produce Record Breaking Red Phosphorescent OLED Devices

Universal Display Corporation (NASDAQ:PANL) and NovaledAG today presented a joint scientific paper at the InternationalSociety of Optical Engineering (SPIE) Optics and Photonics 2006conference in San Diego, CA. The presentation detailed the achievementof a saturated red PHOLED(TM) phosphorescent OLED device with aluminous efficacy of 15 candelas per ampere (cd/A) and an operatingvoltage of less than 4 Volts (V) for a record power efficiency of 12lumens per Watt (lm/W) all at 1,000 candelas per square meter (cd/msquared) brightness. This milestone was achieved through thecombination of Universal Display's high-efficiency PHOLED(TM)phosphorescent OLED technology and materials with Novaled'slow-voltage conductivity doped Novaled PIN-OLED(TM) technology andtransport materials.

Universal Display's proprietary PHOLED technology offers up to100% internal quantum efficiency that is as much as four times higherthan conventional OLED technology. Over the past few years, theCompany has announced a series of record-breaking performancemilestones for its red, green and blue PHOLED systems.

Novaled's proprietary doping technology and materials offer verylow voltage OLEDs that are up to three times lower than conventionalOLED technology. Over the past two years, the company has announced aseries of record breaking performances. Novaled has successfully shownthat very low device voltages can be combined with long operationallifetimes.

Both parties' technologies combined can deliver excellent powerefficiency based on the combination of high internal quantumefficiency and low operating voltage. The results of thiscollaborative work between Universal Display and Novaled was presentedby Dr. Tobias Canzler, of Novaled, in a paper entitled, "Highly powerefficient organic light-emitting devices enabled by phosphorescenceand p-i-n technologies," at the SPIE Conference in San Diego, CA onWednesday, August 16th. The red PIN PHOLED device with colorcoordinates of CIE (0.65, 0.35) has a peak external quantum efficiencyof 16% and a drive voltage of less than 4 V at 1,000 cd/m squared. Thedevice also demonstrates excellent projected operational lifetimes ofgreater than 150,000 hours at an initial luminance of 500 cd/msquared, with a luminous efficacy exceeding 15 cd/A. Therecord-setting 12 lm/W power efficiency (at 1,000 cd/m squared) is aresult of Universal Display's PHOLED high luminous efficiency and thelow drive voltage of Novaled's doped transport materials.

About Universal Display Corporation

Universal Display Corporation is a world leader in developing andcommercializing innovative OLED technologies and materials for use inthe electronic flat panel display, lighting and other opto-electronicmarkets. Universal Display is working with a network of world-classorganizations including Princeton University, the University ofSouthern California, and PPG Industries. The Company has alsoestablished more than 20 development programs and other similarrelationships with companies such as Tohoku Pioneer Corporation;Samsung SDI Co.; AU Optronics Corporation; DuPont Displays, Inc.;Seiko Epson Corporation; Sony Corporation; and Toyota IndustriesCorporation. The Company has also licensed its OVPD technology toAIXTRON AG for the development of next-generation OLED manufacturingequipment. Universal Display currently owns or has exclusive or solerights in approximately 725 issued and pending patents worldwide.

Universal Display is located in the Princeton Crossroads CorporateCenter in Ewing, New Jersey, minutes away from its research partner atPrinceton University. Universal Display's state-of-the-art facility isdesigned to further technology and materials development, technologytransfer to manufacturing partners and work with customers to developproducts to meet their needs for OLED products. Visit UniversalDisplay on the Web at www.universaldisplay.com.

About Novaled

Novaled is engaged in the research, development and marketing oforganic light-emitting diode (OLED) technologies. Starting operationsin March 2003 Novaled experienced a rapid growth in developing andcommercializing its proprietary technology maturing into a world-classtechnology provider. The company markets its advanced Novaled PINOLED(TM) technology together with its proprietary OLED materials todisplay makers and lighting companies preparing their entry into thispromising new field. Novaled set up an industrial cooperation withCiba Specialty Chemicals which produce the unique organic dopant andtransport materials developed by Novaled. Novaled has a strong IPposition manifesting in more than 220 patents granted and filed. Withits legal form change, Novaled transformed into a stock corporation(AG), located in Dresden, Saxony (Germany). For more information,please visit: www.novaled.com.

All statements in this document that are not historical, such asthose relating to Universal Display Corporation's technologies andpotential applications of those technologies, are forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995. You are cautioned not to place undue reliance onany forward-looking statements in this document, as they reflectUniversal Display Corporation's current views with respect to futureevents and are subject to risks and uncertainties that could causeactual results to differ materially from those contemplated. Theserisks and uncertainties are discussed in greater detail in UniversalDisplay Corporation's periodic reports on Form 10-K and Form 10-Qfiled with the Securities and Exchange Commission, including, inparticular, the section entitled '"Risk Factors" in Universal DisplayCorporation's annual report on Form 10-K for the year ended December31, 2005. Universal Display Corporation disclaims any obligation toupdate any forward-looking statement contained in this document.