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PixTech Consolidates Manufacturing and R&D Facilities

    SANTA CLARA, Calif. & ROUSSET, France--July 30, 2001--
    PixTech, Inc. and (EASDAQ:PIXT) announced today that it will consolidate its operations in order to optimize its manufacturing and research and development processes and to decrease operating expenses. The efforts include closing its Boise, Idaho facility and reducing the workforce by approximately 30% to approximately 150 people.

    The restructuring plan includes the following components:

-- The AU Optronics facility in Hsinchu, Taiwan will concentrate on the production of the 5.2-inch Monochrome Display.
-- Montpellier Cathode R&D facility will support the 7-inch Color Display development program and additional research activities.
-- The Boise facility, which currently employs 68, will be closed by the end of September of this year. Resources and equipment required to complete the 7-inch Color Display product development will be transferred to Montpellier, France.

    Dieter Mezger, PixTech's president and chief executive officer, stated, "In light of the current market conditions, we have streamlined our resources to conserve funds during our development stage. The restructuring will significantly reduce our cash burn rate, and simultaneously increase the efficiency of our color display development."
    "PixTech's growth strategy is to leverage our monochrome production and market experience when we launch our Color Displays commercially," continued Mezger. "Our customers like our Monochrome Displays. We have also received positive market reactions to our first full-functional color samples. We expect our consolidation strategy to enable us to reach production with less funding and in less time."
    PixTech plans to announce its second quarter 2001 results before the market opens on Thursday, August 2, 2001. PixTech will host an earnings conference call with remarks by Dieter Mezger, president and CEO and Marie Boem, CFO. The call is scheduled to start at 9:30 a.m. ET. We suggest that you access the call 10-15 minutes prior to the start time. U.S. participants should dial 415-537-1947 and international participants should dial 44-8700-55-9371. The call will also be available via webcast at www.pixtech.com.