COMPANY NEWS

CopyTele Announces Development of its Low Voltage Carbon Nanotube LVND™ Flat Panel Display

MELVILLE, NY – January 3, 2007: CopyTele, Inc. (OTCBB:COPY), announced today the development of engineering models of CopyTele’s low voltage nanotube flat panel (LVND™) display, utilizing carbon nanotubes (10,000 times smaller than a human hair) and proprietary low voltage color phosphors. The models demonstrate the ability to show images from computers by controlling the brightness of selected individual pixels utilizing CopyTele’s carbon nanotube display technology. The 5.5 inch (diagonal) display has 960 x 234 pixels and utilizes a new memory-based active matrix thin film technology (AMTFT) with each pixel phosphor activated by electrons emitted by a proprietary carbon nanotube network located approximately 10 microns (1/10th of a human hair) from the pixels. As a result, each pixel phosphor brightness is controlled using only a maximum of 40 volts. The carbon nanotubes and proprietary color phosphors are precisely placed and separated utilizing CopyTele’s proprietary nanotube and phosphor deposition technology. Some other characteristics of CopyTele’s LVND™ display technology are as follows:

• Proprietary vacuum, spacer, and rapid sealing technology to accommodate AMTFTs and thus obtain a display thickness of approximately 1/16th of an inch, thinner than LCD and PDP (plasma) displays.
• The display matrix, carbon nanotubes, phosphors, and drivers are all on one substrate. A second substrate is utilized only to allow the display to be vacuumed.
• A proprietary low voltage nanotube electron emission control system.
• The ability to select and change brightness of each individual pixel within the AMTFT. It requires only 40 volts on each pixel phosphor to change the brightness from black to white. This compares to thousands of volts required for other video phosphor based displays.
• Low power consumption is required to activate the whole display, and power is only consumed when a pixel is turned on. The display requires less than 1/5th the power required by an LCD.
• Low power consumption that could potentially utilize rechargeable batteries to operate TV products for wireless applications.
• Low power consumption could extend the battery operation time for portable devices.
• The same basic display technology could potentially be utilized in various size applications, from hand-held to TV size displays.
• Proprietary AMTFT matrix structure that could be produced utilizing the existing mass production facilities.
• The display matches the positive performance characteristics of a cathode ray tube (CRT), including wide temperature range operation, wide viewing angle, high contrast, and video response time.
• No display flicker by having memory in each pixel.
• No pixel cross-talk.

CopyTele is continuing to optimize its LVND™ display technology performance including its reliability, size and potential cost.

CopyTele’s principal operations include the development, production and marketing of its thin flat low voltage phosphor displays and the development, production and marketing of multi-functional encryption products, hardware and software based, that provide information security for domestic and international users over virtually every communication media. For additional information, visit CopyTele’s website at www.copytele.com.

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Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect CopyTele’s current expectations concerning future events and results. CopyTele generally uses the words “believes”, “expects”, “intends”, “plans”, “anticipates”, “likely”, “will” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning CopyTele’s expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond CopyTele’s control, which may cause CopyTele’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. In evaluating such statements as well as the future prospects of CopyTele, specific consideration should be given to various factors, including the following: CopyTele’s prior history of losses and negative cash flows from operations; CopyTele’s ability to obtain debt or equity financing to continue our marketing, research and development activities, on terms acceptable to CopyTele, if cash generated from operations is insufficient to satisfy our liquidity requirements; CopyTele’s ability to commercialize a full-color video display; the possible development of competitive products that could render CopyTele’s products obsolete or unmarketable; and other risks as detailed from time-to-time in CopyTele’s filings with the Securities and Exchange Commission. CopyTele undertakes no obligation to update any forward-looking statements as a result of new information, unanticipated events, or otherwise.