GYRICON MEDIA TO TRANSFER HEADQUARTERS TO AND
OPEN MANUFACTURING PLANT IN ANN ARBOR, MICHIGAN
IN ORDER TO CENTRALIZE BUSINESS ACTIVITIES AND
MASS PRODUCE ELECTRONIC PAPER

INNOVATOR WITH INITIAL SUCCESS IN RETAIL INDUSTRY
ADDS TALENT AND REORGANIZES CORPORATE STRUCTURE TO
TAKE COMPANY TO NEXT LEVEL OF PRODUCTION & COMMERCIALIZATION

January 30, 2002 (Palo Alto, CA) - Gyricon Media, Inc., (gyriconmedia.com), a leading provider of SmartPaper" innovations and signage solutions, announced today that they will transfer their headquarters and open a manufacturing plant in Ann Arbor, Michigan to capture the significant interest from the marketplace in electronic paper and signage solutions. This shift to Ann Arbor's Scio Township signifies the next phase of Gyricon's business plan and will be accompanied by a new management team to handle the business in Michigan, as well as the company's existing Palo Alto and Boston offices. Mrs. Iva M. Wilson, president, Mr. John Ratay, vice president and Chief Operating Officer and Mr. Edward V. Egert, vice president marketing and sales, will join the new management team.

"The new central headquarters and the opening of our new $10 million manufacturing facility in Michigan begins an exciting new phase for Gyricon," said Geert DeHaas, CEO of Gyricon Media, Inc. "The response to our MaestroSign Systems" has been positive and substantial and prompted us to move into mass production. I am very confident in the new leadership team's ability to make this a smooth transition and another successful phase for Gyricon."

The 48,000 square foot manufacturing plant will be home to the production of patented SmartPaper" and signs for commercialization across various industries, including the retail marketplace, which has been highly receptive to Gyricon's product line. The plant, opening in May 2002, is expected to create more than 500 jobs by 2004. Gyricon chose the Ann Arbor area for several reasons, including its significant number of technology businesses, the labor pool produced by the University of Michigan and the numerous manufacturing plants already existing in the area.

The new leadership team for Gyricon Media will include: Iva M. Wilson, president, John Ratay, vice president and COO, Dr. Robert Sprague, vice president and CTO, Chris Skeadas, vice president and CIO, Herbert Boks, Controller/ CFO, Edward J. Holcomb, vice president business development, Edward V. Egert, vice president marketing and sales and Nicholas K. Sheridon, Research Director and inventor of SmartPaper" technology. Iva M. Wilson, John Ratay, and Edward V. Egert are the only new employees of the company. Mrs. Wilson, a Ph.D. in electrical engineering with an MBA, was previously president of Philips Display Components Company. Mr. Ratay was vice president of operations at the Philips Display Components Company, responsible for all manufacturing and development engineering related to products manufactured in the United States. Mr. Egert also held a position at Philips Display Components Company as the vice president of sales, marketing and related commercial activities for Philips display products in North America.

About Gyricon Media, Inc.
Headquartered in Palo Alto, CA and with offices in Boston, MA, Gyricon Media Inc. was founded in 2000, after being spun off from Xerox. Gyricon Media, Inc. is comprised of former researchers, from Xerox Corporation's Palo Alto Research Center, who developed SmartPaper" technology and software professionals with expertise in the retail signage software business. Gyricon Media, Inc. is managed by a group of seasoned international executives.

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