Revenues in the quarter were $2.7 million, which was the same as the $2.7 million reported for the corresponding period in 2005.  The majority of revenues in Q2 2006 arose in the License Fees and Royalties category.

Gross profit for Q2 2006 was $2.4 million, compared with $2.0 million for the corresponding period last year.

Research and Development expenses were $3.2 million; $1.0 million lower than the $4.2 million reported in the second quarter of 2005.  This reduction was primarily due to the $1.9 million reimbursement of a R & D expenses by our 50% owned joint venture Sumation (which was formed in November 2005) in the current quarter, partially offset by lower government grant receipts and additional effort expended on research programs.

Selling, General and Administrative expenses were $3.6 million, compared with
$4.4 million in 2005, due to a reversal of stock compensation expense which had previously been accrued and due to re-imbursement of expenses by Sumation.

Net loss for Q2 2006 was $5.0 million, compared with $6.7 million for the same quarter in 2005.

Cash generated by operations was $1.2 million during the second quarter, compared with cash used of $2.0 million in the second quarter of 2005 primarily due to the funding of R & D reimbursements, in advance, by Sumation.  During the quarter, the Company invested $3.3 million in Sumation, and invested $0.4 million in fixed assets.

The Company’s cash, cash equivalents and current marketable securities totaled $23.0 million at June 30, 2006, compared with $31.3 million at December 31, 2005.

CEO Dr. David Fyfe commented: “In the second quarter we were delighted to see Sharp reveal their work on high resolution P-OLED displays at the SID conference in June.  At the same conference we were able to show the world’s first roll printed OLED display, produced in co-operation with Toppan Printing. This printing technology could become very important in future for lower cost display production.”

“The second quarter has seen us open up new territories with sales of inkjet printing solutions to Brazil and Singapore, enabling Government-backed institutions there to develop P-OLED capability.  We believe that there is evidence of an emerging trend for fast developing economies to refuse to accept that the display industry will continue to be concentrated in a few nations.  We have also seen an encouraging number of new commercial applications utilizing our technology, from digital radios and MP3 players to diving computers.” 

The Company will be holding a conference call to discuss these results. Interested investors may listen to a live web cast on Tuesday August 15, 2006 at 3:00 pm ET, (8:00 pm BST).  This call can be accessed through the internet at www.earnings.com.

The financial results included in this press release are unaudited. The interim financial statements of the Company for the quarter ended June 30, 2006 will be included in the Company’s Quarterly Report on Form 10-Q to be filed with the SEC. 

About CDT
Cambridge Display Technology is a pioneer in the research, development and commercialization of polymer organic light emitting diodes (P-OLEDs), which are targeted for use in a wide range of electronic display products used for information management, communications and entertainment. Features include reduced power consumption, size, thickness and weight, wide viewing angle, superior video imaging performance and the potential for use on flexible display substrates. Current CDT licensees are actively developing their manufacturing strategies. Founded in 1992, the Company is headquartered in Cambridge, UK and listed on the NASDAQ National Market under the ticker symbol “OLED”.

The Company’s website is www.cdtltd.co.uk 

Statements contained in this press release that are not historical facts are "forward-looking statements" and their presence may be indicated by words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will" and "may," as well as the negative thereof and similar expressions. There can be no assurance that future developments affecting Cambridge Display Technology, Inc. and its subsidiaries will be those anticipated by management. Among the factors, risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements are the following: the outcomes of the Company's ongoing and future research and development activities, as well as those of its licensees; the Company's ability to form and continue strategic relationships with manufacturers of P-OLED materials and displays; the successful commercialization of products that include the Company's P-OLED technology by its licensees; the willingness of the Company's manufacturers and licensees to continue to develop, manufacture and sell commercial products integrating the Company's technology; the future demand for products using the Company's P-OLED technology; the comparative advantages and disadvantages of any competing technologies; the Company's ability to maintain and improve its competitive position following the expiration of its fundamental patents; the adequacy of protections afforded to the Company by the patents that it owns or licenses and the cost to the Company of enforcing these patents; the Company's ability to obtain, expand and maintain patent protection in the future and to protect its unpatentable intellectual property; developments in and expenses associated with resolving matters currently in litigation; and the Company's future capital requirements and its ability to obtain additional financing when needed. Readers should also consider the additional factors described under the captions “Cautionary Statement Concerning Forward-Looking Statements” and "Risk Factors” in the Company's 10-K and 10-Q reports filed with the SEC. Investors should not place undue reliance on such forward-looking statements and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.