COMPANY NEWS

CopyTele Announces Models of Full Color Thin Flat CRT Displays

MELVILLE, NY – January 27, 2006: CopyTele, Inc. (OTCBB:COPY) announced today that it has produced models of full color thin flat CRT displays that can be connected to a DVD player to show color or black and white movies. The thin flat CRT color displays have a 5.5-inch (diagonal) with 960 x 234 pixels. The displays incorporate CopyTele’s PIXEL MATRIX ELECTRON CONTROL SYSTEM (“PMECS”) which operate at low voltages (less than 40 volts); consume low power; operate over a wide temperature range (-40ºC to +85ºC); can be viewed with high contrast over approximately 180º viewing angle in both the horizontal and vertical directions; have built-in pixel memory to achieve high brightness; and are thin, rugged, and compact.

CopyTele’s principal operations include the development, production and marketing of thin, high brightness, flat panel video 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. These products are being marketed directly to end-users and through dealers and distributors. 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; 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.