New volume manufacturing facility to ramp-up in 2008

Plastic Logic, a Cambridge-based company whose seed financing was led by Amadeus Capital Partners, announced today that it will build the first factory to manufacture plastic electronics on a commercial scale. The facility will produce flexible active-matrix display modules for ‘take anywhere, read anywhere’ electronic reader products. It will utilise Plastic Logic’s unique process to fabricate active-matrix displays that are thin, light and robust; enabling a reading experience closer to paper than any other technology. 

Plastic Logic “take anywhere, read anywhere” display using E Ink Imaging Film (TM)

High resolution images and videos available at http://www.plasticlogic.com/hi-res.php

To fund this comprehensive commercialisation programme, Plastic Logic has completed a first closing of $100 million of equity finance led by Oak Investment Partners and Tudor Investment Corporation. Existing investors Amadeus Capital Partners, Intel Capital, Bank of America, BASF Venture Capital, Quest for Growth and Merifin Capital also participated.

The financing is one of the largest in the history of European venture capital.

Bandel Carano, Managing Partner at Oak, said “Plastic Logic has created a pioneering technology that will revolutionise the way that people interact with their media on the move. This investment is a perfect fit with Oak’s vision of future media interaction through handheld devices.”

Rob Broggi, Vice President and Director of Technology, Media and Telecommunications Equity Research at Tudor, added “This investment meets our objective to find and participate in the most exciting investment opportunities globally, particularly in mobile and nanotechnology sectors.” 

Hermann Hauser, Director of Amadeus, commented “Having backed Plastic Logic from day one, I am delighted that the first full commercialisation of plastic electronics is now firmly in our sights. With this investment we are not only scaling up a great company – we are also creating a new electronics industry that will become a significant addition to silicon.”

The facility will produce display modules for portable electronic reader devices – a product category that is predicted to grow to 41.6 million units in 2010. It will have an initial capacity of more than a million display modules per year and production will start in 2008. Following an extensive worldwide site selection process, the company expects to confirm shortly that the facility location will be in Dresden in the ‘Silicon Saxony’ region of eastern Germany. 

“Our displays will enable electronic reader products that are as comfortable and natural to read as paper whether you’re on a beach, in a train or relaxing on the sofa at home.” stated John Mills, Chief Operating Officer at Plastic Logic. “Wireless connectivity will allow you to purchase and download a book or pick up the latest edition of your newspaper wherever you are and whenever you need it. The battery will last for thousands of pages so you can leave your charger at home.”

“Even in this age of pervasive digital content, our research shows that consumers are very reluctant to read on laptops, phones and PDAs,” said Simon Jones, Vice President of Product Development at Plastic Logic. “We still carry around enormous amounts of paper. However, people are making less room in their lives for the weight and bulk of paper and are becoming more sensitive to the environmental impact of printing to read. We believe there is a substantial unfulfilled need that Plastic Logic can meet by making digital reading a comfortable and pleasurable experience.”

www.plasticlogic.com