• Kopin gains significant access to the European and NATO defense market
• Accelerates development of critical technologies
• Further strengthens Kopin’s balance sheet
• Fixed conversion price of $3.00 per share on $7 million convertible preferred stock issuance

WESTBOROUGH, Mass. – Kopin Corporation (NASDAQ: KOPN) a leading provider of application-specific optical systems and high-performance microdisplays for defense, training, enterprise, industrial, consumer and medical products, announces a $15.0 million strategic investment agreement by Theon International Plc (Euronext Amsterdam: THEON), a globally recognized developer and manufacturer of advanced thermal imaging and night vision systems for global defense and thermal imaging markets.

Upon closing the parties will enter into a licensing and development agreement and funding agreements. Theon will invest $8.0 million into Kopin’s subsidiary in Dalgety Bay, Scotland, supporting co-developed products for Europe, Southeast Asia, and NATO countries, enabling collaborative initiatives across key global regions. In exchange for the $8.0 million Theon will receive a 49% equity interest in Kopin Europe. The parties anticipate performing joint development and production activities at Kopin’s wholly owned subsidiary in Reston, Virginia USA.

In addition, Theon will purchase $7.0 million of preferred shares from Kopin convertible into common stock at a fixed conversion price of $3.00 per share. Kopin will have the ability to force the conversion to common stock, once Kopin’s stock trades at $4.50 or higher for a period of 10 trading days within a 30 consecutive trading day period as defined in the agreements. The preferred shares carry an annual dividend of 4% payable in cash and stock. The $15.0 million investment is subject to standard closing conditions including obtaining necessary regulatory approval and is expected to close in Kopin’s fiscal third quarter.

“We are glad to be partnering up with KOPIN to realize their strategy of supplying complete systems directly to end users using novel micro-displays,” said Christian Hadjiminas, THEON’s CEO. “THEON’s extended A.R.M.E.D. product line of Augmented Reality solutions for the dismounted solder will be a vehicle for co-developments between the two companies enabling and expanding resources on KOPIN’s facilities in Reston (VA) that becomes Theon USA ‘s new industrial location. KOPIN’s engineering, components, and market reach will increase THEON’s US market penetration, while THEON’s global footprint in the rest of the world, along with the European jointly owned company KOPIN Europe (Scotland, UK) will ensure KOPIN’s products as well as the new co-developed products by KOPIN and THEON will be globally promoted. A true U.S. and European alliance for the present and future in the digital man portable space.”

Michael Murray, Chairman and CEO of Kopin stated, “Theon’s investment reflects our confidence in the relationship and the value we see in working together. The investment is expected to accelerate revenue growth in new markets, scale existing operations and better leverage our manufacturing infrastructure. Partnering with a world class international organization like Theon – one that believes in our future and shares in our vision – comes at a pivotal time as global defense spending continues to rise and a transformative milestone in Kopin’s evolution.”

This strategic relationship is expected to elevate Kopin’s position as a global player in microdisplays and application specific optical solutions for defense applications, and drive innovation, expand market reach, and reinforce Kopin’s role in delivering mission-critical optical technologies to allied defense forces worldwide.

Advisors

Stifel is acting as exclusive financial advisor and placement agent to Kopin.

WASHINGTON – 16 October 2025 – On October 16, General Atomics Aeronautical Systems, Inc. (GA-ASI) and the Dutch Ministry of Defence (MoD) signed an agreement to develop innovative defense capabilities starting with a small unmanned aircraft system (SUAS) designed to provide multi-role intelligence, surveillance, and reconnaissance (ISR) capabilities. The new platform will be low cost and able to host a variety of operationally relevant payloads and capabilities.

The partnership envisions implementing a business model that will enable the platform to scale up to high-volume production to meet demand.

“This contract is the first step in a strategic partnership with the Dutch MoD that will ultimately contribute to the defense of Ukraine and NATO by creating a versatile European defense system,” said GA-ASI CEO Linden Blue.

GA-ASI is the world leader in UAS products and capabilities. The company is building on its established relationship with the Netherlands to create an urgently needed partnership to help defend Europe.

As part of the first phase of the contract, the Dutch MOD will collaborate with GA-ASI to establish UAS manufacturing capability.

Minister for Arms Procurement and Personnel Gijs Tuinman mentioned that this partnership is important: “Together with GA we will be increasing innovative SUAS capabilities and advancing technical knowhow in the Netherlands. This project is an example of strategic trans-Atlantic collaboration that supports our defense and technological base as we contribute to the defense of Ukraine and NATO by creating a versatile European defense system and working with a strong U.S. partner.”

VDL Defentec has been selected by GA-ASI to provide contract manufacturing of the new SUAS. VDL Defentec is based in the Netherlands and specializes in the development, engineering, subcontracting and production of military and special-purpose vehicles and other platforms. GA-ASI will work closely with VDL and provide detailed knowledge about the design, manufacture, logistics, and support of the new SUAS.

“We are excited having been selected by General Atomics and we are proud to support Dutch MOD to create, together with GA-ASI, this unique capability for the Netherlands making our country and our allies more resilient,” said Paul Malcontent, managing director of VDL Defentec.

The new aircraft is expected to fly before the end of this year with low-rate initial production expected to commence in 2026 in both the U.S. and the Netherlands.

WESTBOROUGH, Mass. – Kopin Corporation (NASDAQ: KOPN) a leading provider of application-specific optical systems and high-performance microdisplays for defense, training, enterprise, industrial, consumer and medical products, announced it has secured approximately $3 million in orders from a tier one aerospace company for MicroLED displays, marking the first production order for this technology in combat aircraft, a new technology offering and a burgeoning market, for Kopin.

Scheduled for delivery in the second half of 2026, the displays will upgrade legacy Heads-Up Displays (HUDs) in fielded aircraft, providing pilots with high-resolution imagery projected onto a screen directly in their line of sight, enhancing situational awareness, safety and mission effectiveness.

Kopin’s MicroLED display is fully flight-qualified and offers both unparalleled brightness for high-glare daylight missions, and ultra-low dimming for nighttime missions. With up to 1 million foot lambert (fL) brightness-100 times brighter than organic light emitting diode (OLED) displays-the MicroLED display ensures superior performance in the brightest daylight/sunlight conditions. With a dimming range, exceeding 30,000:1, the display ensures seamless adaptability from bright daylight to low-light night missions. The advanced backplane architectureensures exceptional image uniformity and eliminates motion artifacts providing smooth, high-fidelity visuals for the pilot when it matters most.

The Kopin MicroLED’s extreme brightness and true black offer superior see-thru performance for HUDs and augmented reality systems, even in the most extreme conditions.

Kopin’s MicroLED also sets a new standard for energy-conscious performance, with up to five times greater power efficiency compared to competing microdisplay technologies. Each display offers 4-megapixel resolution and supports 120 frames per second, delivering ultra-sharp, real-time imagery for mission-critical applications.

“This order reflects the growing demand for advanced display solutions in aerospace applications and validates the readiness of our MicroLED technology for field deployment,” said Bill Maffucci, Senior Vice President of Business Development and Strategy at Kopin. “MicroLED represents a transformative leap in display performance, offering unmatched brightness, durability, and image clarity-capabilities that are essential for today’s high-performance aircraft. We’re proud to support our customers in modernizing the fielded aircraft, replacing legacy systems with cutting-edge HUD technology that enhances pilot situational awareness and safety, and mission effectiveness. This milestone underscores Kopin’s leadership in developing and delivering field-ready, military-grade MicroLED displays.”