Ms. Charlotte Walker reports

VUZIX REPORTS 97.5% REVENUE GROWTH FOR ITS FIRST QUARTER 2011

Vuzix Corp. has released its first quarter results for the period ended March 31, 2011. Unless otherwise indicated, dollar amounts referred to herein are references to U.S. dollars. For the first quarter period ended March 31, 2011, revenue was $4,073,109 as compared with $2,061,959 for the same period last year, an increase of 97.5 per cent. A net loss of $420,306 or 0.16 cent per share was reported for the three-month period ended March 31, 2011, versus a loss of $1,507,200 or 0.58 cent per share in the same period of 2010. The gross margin expanded to 41.8 per cent in the first quarter 2011 against 27.1 per cent in the first quarter of 2010 reflecting a significantly larger proportion of higher margin defence and industrial product and engineering services revenue. These products and services represented 84.1 per cent of revenues in the quarter versus 40.5 per cent in the same quarter in 2010. Gross profit grew 203.2 per cent to $1,697,399 in the first quarter 2011 compared with $559,884 in the same period of 2010.

Paul Travers, chief executive officer, said: "Our first quarter reflected the continued strong growth in our defence and industrial products. We signed an important new research program with the Defense Agency Research Projects Agency and also began volume deliveries for the air force battlefield airman head mounted display program. The company also announced key partnerships with NS Solutions, the systems integration unit of Nippon Steel and metaio GmbH. These partnerships underscore the interest the company is currently fielding for its new augmented-reality-enabled eyewear products. These products are allowing the company's customers to build and implement mobile AR applications that can provide advantage to their operations. Vuzix is again leading with market firsts and strong innovation."

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