This fully functional miniature display uses just three light emitting diodes (LEDs) coupled with a vibrating mirror on a tiny micromechanical chip, the company said.

As the user holds a cell-phone-like device near one eye, the tiny display scans a single beam of multi-colored light through a small lens to project a full-color video image of the apparent size and resolution of a notebook or laptop display screen onto the eye.

The company believes its unique display can add functionality to such emerging consumer products as handheld wireless devices, gaming systems, portable DVD players and digital cameras.

According to Russell Hannigan, Microvision’s director of business development for advanced products, the image quality of the prototype is exceptional. "We achieve full Super VGA (SVGA or 800 x 600 lines) resolution and have measured contrast ratios up to 150:1. Color gamut and saturation are already comparable with a very high quality CRT and we expect to see further improvements in performance over the weeks ahead."

In addition Hannington stressed the low cost advantage of the technology. "We can deliver higher image quality at lower prices than competing miniaturized flat panel displays."

"Hitting an acceptable price point is going to be key to gaining and keeping share in the cost sensitive consumer electronics space. Ultimately it’s all about pixels per penny," he added.

The company will spend that next 18 to 24 months reducing the size, weight, power consumption, and especially, cost of the miniature display.