Consolidated results include Microvision, Inc. and the company’s subsidiary,

Lumera Corporation. During the first quarter 2001, the loss attributable to

Lumera was $2.3 million or $0.19 per share. Results for the quarter also

include a charge of $1.1 million or $0.09 per share, of which $1.0 million was

non-cash, attributable to payment to the University of Washington of a

fully-paid license fee for the Halo display technology. Consolidated revenues

increased to $2.3 million from $2.1 million in the same period in 2000.

The company ended the quarter with $54.1 million in cash and investment

securities and a revenue backlog of $9.6 million.

The company indicated that there is a high probability that the release of

its Nomad display would be delayed by 10 to 12 weeks (into the fourth quarter)

as a result of a need to further optimize the scanner drive mechanism and

control software. However, the impact on total revenue and earnings may be

mostly or entirely offset by higher than expected sales of the Spectrum

display unit and an increase in contract revenue for the year.

The recently completed $24 million funding round by Lumera will result in

an allocation of Lumera’s operating losses to Microvision of approximately

$0.45 per share for 2001 which is significantly lower than the $1.00 per share

previously estimated.

We are pleased with our progress and results this quarter, noted

Rick Rutkowski, Microvision president and CEO. We are meeting our operating

and financial goals and continuing to advance our marketing and sales efforts

towards product introductions. While the delay in Nomad’s release is

disappointing, we are still comfortable that 2001 revenues can be in the

neighborhood of 50 percent higher than last year. We intend to make good use

of the time by continuing to enlist new customers, and prospective application

and distribution partners for the Nomad system. We can control the timing of

many of the budgeted expenditures relating to the ramp toward Nomad release to

minimize any negative impact to net operating income.

The Spectrum display is also being very well received. We are excited

about the market potential for our barcode scanner product, which continues to

proceed on schedule towards prototype demonstration this summer and product

launch in early 2002. With respect to Lumera, we appear to be on track with

our technical and product plan at a reduced rate of investment, and our design

fabrication facility, which has recently come on line, may in fact support

moderate levels of production. These developments could allow us to get

greater impact out of our first round funding than we originally anticipated.

SOURCE: COMPANY PRESS RELEASE