FOR IMMEDIATE RELEASE
July 2004

magink Display Technologies Completes $27 Million Round of Financing

New York, NY and Tel Aviv, Israel - magink display technologies, Inc., developer of the world's first full-color digital ink displays, has closed on a US$27 million round of Series C financing.

VantagePoint Venture Partners (VPVP), one of the largest venture capital firms in the U.S. with more than $2.5 billion in capital under management, led the round with Israel-based Formula Ventures and Japan Asia Investment Co. (JAIC). VPVP and Formula Ventures are new investors in magink, while JAIC, one of the largest venture funds in Japan, made an initial investment in the company in April 2003.

magink develops proprietary, full-color, commercially-viable digital ink technologies. The company is commercializing its digital ink technology through a variety of digital display applications and solutions for a broad array of global industries, including: the outdoor advertising market (digital ink billboards); mass transit systems; consumer electronics products; retail point-of-purchase; and promotional displays using digital tiles.

Ran Poliakine, founder and CEO of magink, said, "This significant investment will enable magink to build a global marketing and distribution system while strengthening our position as a world leader in the field of digital ink and its vast potential for display applications. We're delighted to have attracted the interest and commitment of such a large and reputable fund as VPVP and believe that the added value that the fund and its partners bring to magink will represent one of the keys to our future success."

"We also are thrilled that that this round of financing was international in scope with participation from the U.S and Japan, which is representative of the worldwide potential of magink's core digital ink technology," concluded Poliakine.

Duncan Davidson, Venture Partner, VantagePoint said, "magink has an exceptional technology, the first full color digital ink world wide, that has the potential to fundamentally transform many industries beginning with the outdoor display market."

About magink Display Technologies, Inc.
magink Display Technologies, Inc., was established in 2000 with sales and marketing headquarters in New York City and research and development centers in Israel and the United Kingdom. The company's mission is to continuously develop its revolutionary digital ink core technology and provide highly efficient, variable resolution, full-color, high contrast, low energy and cost-effective digital display applications and solutions to a broad array of global industries.

The company is commercializing its digital ink technology for the outdoor advertising market (digital ink billboards), mass transit systems, consumer electronics products, retail point-of-purchase, promotional displays and digital tiles. magink's digital ink displays are manufactured under an agreement with Mitsubishi Electric Corp., the creators of Diamond Vision?. For more information, visit www.magink.com.

*Diamond Vision is a registered trademark of Mitsubishi Electric Corporation in some countries and areas, including but not limited to the USA and Japan.

About VantagePoint Venture Partners
VantagePoint Venture Partners is one of the most prominent venture firms in the U.S. with more than $2.5 billion in committed capital in four funds. The Firm is an active multi-stage investor providing funding and resources for all stages of a company's lifecycle from seed round through late stage and privately negotiated investments in public companies. VantagePoint is based on a full-service 'Partner-Team' approach that provides entrepreneurs with a blend of technology, venture capital, operations, marketing, and corporate-finance expertise. The Firm is focused on technology investments in the CleanTech, Healthcare, Communications, Semiconductor and Components, and Software sectors. More information about VantagePoint is available at www.vpvp.com.

About Formula Ventures
Formula Ventures manages investments worth around $200 million in three funds. The fund invests in the software, communications and semiconductors fields. Formula Ventures is managed by Shai Beilis, Benny Meidan and Nir Linchevsky.

Formula Ventures' main investors are the Formula Group, VantagePoint, UBS Bank, Shamrock Group and Swiss Life Insurance Company. Formula Ventures' portfolio companies include Radlan (acquired by Marvell in 2003), MainControl (acquired by MRO Software), Business Layers (acquired by Netegrity), and Phonetic. More information is available at www.formulaventures.com.

About Japan Asia Investment Co.
Japan Asia Investment Co., Ltd. (JAIC) is an independent venture capital company now ranked one of Japan's largest. JAIC helps unlisted venture companies with high growth potential to procure capital and contributes to their growth and improvement of corporate value by offering information and supporting IPOs and providing consultation, along with mergers and acquisitions and management-buyout proposals. For more information, visit www.jaic-vc.co.jp

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Website URL: www.magink.com