Here's my LONG set of notes from the meeting.



Microvision Annual Stockholder Meeting - a layman's perspective



I was glad to make it to the Annual Stockholders meeting for Microvision.

This is the first one that I have attended since purchasing the stock earlier this year.

I live in the area so I decided to drop by. Note, this is not concise and

I am an amateur so don't expect some fancy analysts' report.



In general two things were apparent; the company has great even overwhelming potential,

and there are some people who are not happy enough with some aspects of the company.



Before the meeting started there was a demo session where about four display units

were being driven by Xybernaut portable computers. The display units were evidently

prototypes that may have a different shape in the production model. Each was displaying a

red only Powerpoint display of possible graphics. It was much easier to use than I had expected.

The detail was not as fine as I had expected but I see no reason that it won't improve.

Evidently a full color unit will be available next week for some meeting in California

and it may also be made available during an Open house at the company's facilities within

the next few months. The sticky pastries and coffee were at the far far end of the room.

Makes sense to me. I'm kinda clumsy.



The employees were enthusiastic, knowledgeable and helpful.



Attendance was lighter than I expected with probably less than one half of the seats

occupied.



The official portion of the meeting was run with only a few flaws in the script and the

audio visual equipment. Will that ever work when you want it too? The CEO was obviously young,

enthusiastic, and proud of what they have accomplished and what they expect to become.

Surprisingly to me there were only 10,000,000 shares represented out of a possible 12,000,000.

Isn't the ratio usually higher? Nonetheless all motions passed.



News about the company was mostly about how pleased the CEO is with the new facilities and employees.

About 40 people have been hired since the beginning of the year.



Developments that received particular note included:



> light brightness four times greater than the HUD competition

> scanners for image capture that operate at 10,000 hertz rather than the standard 100 hertz

> image capture scanners that can have their components fabricated at 500 devices per wafer

> a four minute video of the surgical application describing how the surgeon and assistant

will not have to distract their attention from their patient to see critical data

> a Fortune 100 company has expressed significant interest because of the possible reduction

in inventory costs with an increase in safety



I do not recall any mention of schedules or significant future milestones.



That concluded the formal portion of the meeting.



The Question and Answer session that followed addressed four topics.



Topic one was a request for individual product progress and schedule updates similar to

what was evidently reported last year. The answer seemed to be that the information was

essentially what had just been presented during the formal part of the meeting though the

2001 production date with Xybernaut was highlighted. The Gemfire work was described as

being long term.



Topic two regarded the patent portfolio. It sounds like the patent lawyers are

busily trying to build a "patent fence" that will protect the company's intellectual property.



Topic three dealt with the Compensation Committee. It is apparent that this is an

uncomfortable issue which I am not totally familiar with. Evidently the company has a

structure which is not in agreement with some stockholder advocacy groups. The chairman

of the committee explained that it does not function differently; only that it is structured

differently. The conversation seemed to be handled in a defensive manner and I wonder if there

isn't some history that has stirred some emotions. The issue seemed to be a straightforward

one but verbal interplay seemed heated to me.



Topic four also had some apparent verbal heat and had to deal with the company's burn rate.

While it is impossible to predict how a product development cycle will proceed, a question was

asked about how long the company can sustain itself on its existing cash revenues.

Eventually the answer came out that there are $60,000,000 in cash and about $5,000,000 in quarterly

expenses. A simple approach is to suppose that the company could then continue for about 3 years

on current reserves. A heated discussion ensued because when developing a product, cash

flow is not always that regular and additional funds can be generated if the financial

community is sufficiently impressed with the company's potential. Again this seemed to be

a straightforward query and topic but again there seems to be some history behind this as

the topic was closed and the meeting adjourned by the CEO voicing a mild expletive and

leaving the podium.



Overall I got the feeling that the company was enormous potential. During the discussion of

the fourth topic, the CEO estimated that the company may be able to experience about

$100,000,000 of revenue per year per product line. Very enticing. I wonder if there aren't

some shareholders that are losing patience and are therefore anxious, but who also recognize

potential and are therefore hanging in there with the company. It is impossible for a new

stockholder such as myself to fully understand the personal histories and personalities involved.

Any insight would be appreciated. It was obvious that the people I heard from and met were

intelligent and enthusiastic. I am hoping that the friction that I perceived is a symptom

of growing pains and not of a significant flaw.



As a result of the meeting I will continue to maintain my long position. My wife and I tend

to hang onto stocks for years rather than months. But because of some of the dynamics that

I saw and the lack of even such things as target schedules, I will not increase my position

and I will be quite watchful of the company's developments. I hope to encourage Investor

Relation to convene some other forum where the shareholders can meet the CEO and other

people associated with the company in a more relaxed environment. Hmmm, Anyone else interested

in such an event?



Again, I will close with the disclaimer that I am an amateur and these are my only impressions

and notes (which are being typed up later than my bed time). I'll be happy to try to clear up

ambiguities and to discuss insights ( not flames) that others may have about the issues

described here. Sorry it too so many words. Hope it was useful.