CAMBRIDGE, United Kingdom, May 15, 2007 -- Cambridge Display Technology, Inc. (Nasdaq: OLED), a pioneer in the development of polymer organic light emitting diode (P-OLED) technology, today reported its financial results for the first quarter ended March 31, 2007.

Total revenues for the first quarter of 2007 were $3.0 million, compared with $1.0 million for the same period last year.   The increase was due to recognition of revenues from a license agreement and a development agreement signed in September 2006, and the sale of an inkjet printer during the first three months of 2007.

Gross Profit increased from $0.7 million in the first quarter of 2006 to $1.7 million in the first quarter of 2007 due to higher revenues.  Gross margin decreased from 64% to 56% primarily due to lower margins in the Technology Services and Development and Equipment and Supplies.

Research and Development expenses for the first quarter of 2007 were $3.7 million, up from $3.1 million for the first quarter of 2006.  R&D expenses were impacted primarily by an increase in development costs related to CDT's Total Matrix Addressing TM ("TMATM") technology, higher expenditures on research programs and stock based consideration costs related to the purchase of the assets of Next Sierra Inc. in January 2007 as part of our TMA development plan.

Selling, General and Administrative expenses for the first quarter of 2007 increased to $4.4 million, from $4.0 million for the same period last year, primarily as a result of litigation expenses.

Equity in loss of affiliates decreased slightly to $1.3 million for the first quarter of 2007, from $1.4 million for the same period in 2006. 

Net loss increased slightly to $7.7 million during the first quarter of 2007, from $7.6 million for the same period in 2006.

Total deferred revenues at March 31, 2007 were $9.2 million, an increase of $3.9 million from the $5.3 million at December 31, 2006.  Deferred revenues increased because the amount of cash we received under license and technology services contracts in the first quarter of 2007 exceeded the revenues we recognized under those contracts during the same period.  The most significant of those contracts was the major license which was sold in September 2006, pursuant to which revenues are being spread over time rather than being recognised on receipt.

Total cash and current marketable securities was $16.7 million at March 31, 2007, as compared with $19.3 million at December 31, 2006.

Chairman and CEO Dr. David Fyfe commented: "Our results for the first quarter primarily reflected the impact of license and development agreements signed during the fall of 2006.  In January, we announced the acquisition of the assets of Next Sierra, a developer of P-OLED/OLED display driver chips, and the team we acquired is now completely focused on accelerating the development of our TMA passive matrix driver technology.  In March, we announced that the significant growth in our material lifetimes - through our joint venture Sumation - have now enabled P-OLEDs to meet commercial requirements for adoption in micro and small displays."

"Commercialization of OLEDs - and in particular, P-OLEDS - continues to advance industrywide.  During the first quarter, there have been increasing signs that the flat panel display industry is moving towards an OLED-based solution for the next generation of display technology, with a number of the major display manufacturers demonstrating OLED-based applications.  Most recently, this included the demonstration of a full-color 21-inch P-OLED television from Toshiba Matsushita Display.  In addition, MicroEmissive Displays, or MED, one of our long-time licensees, recently announced that they are on target to launch commercial production of their P-OLED wearable headset display in July and already have reported $10.5 million in backorders," Fyfe added.

The financial statements of the Company for the quarter ended March 31, 2007 are included in the Company's Quarterly Report on Form 10-Q, which can be accessed on the SEC website HERE.

The Company will be holding a conference call to discuss the financial results included in this news release.  Interested investors may listen to a live web cast today, May 15, 2007 at Noon ET/9:00AM PT (5:00PM BST).  The call can be accessed through the Internet at www.cdtltd.co.uk.

About CDT
Cambridge Display Technology is a pioneer in the research, development and commercialization of polymer organic light emitting diodes (P-OLEDs) and other related technologies, 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 Global Market under the ticker symbol "OLED".
The Company's website is www.cdtltd.co.uk