COMPANY NEWS

CopyTele Announces Receipt of the Flat CRT Color Matrix Structures

MELVILLE, NY – September 24, 2004: CopyTele, Inc. (COPY: OTCBB), announced today that it has received prototypes of two modified TFT (thin film technology) color matrix pixel structures based on our high brightness flat CRT technology. The two color matrix structures, which will be components of our displays, are a 7-inch (diagonal) with 1440 x 234 pixels and a 5.5-inch (diagonal) with 960 x 234 pixels. As part of our TFT color matrix design, each pixel contains memory to achieve high brightness at video rates. The prototypes were developed based on our high brightness technology under our agreement with an Asian company, a mass producer of TFT liquid crystal displays.

With the assistance of Volga Svet Ltd. (“Volga”), a Russian display company that we have been working with for over seven years, we are completing the displays containing the prototypes. The displays will be able to display both wide-screen and standard TV formats for digital and DVD operations.

We will have available the two color matrix structures at the recently announced Annual Meeting of Stockholders. We will also demonstrate, at the meeting, the recently announced encryption product line which is described under the “Encryption Products” link in CopyTele’s website, www.copytele.com.

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; CopyTele’s ability to develop 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.