EXHIBIT 99.1

                          SI DIAMOND TECHNOLOGY, INC.
12100 TECHNOLOGY BLVD  AUSTIN, TEXAS 78727 (512) 331-6200  FAX: (512) 250-2730



NEWS RELEASE                                            For further inormation:
                                      Trey Fecteau, SI Diamond Technology, Inc.
                                                                 (512) 250-2709


           SI DIAMOND TECHNOLOGY ELECTS MARC ELLER CHAIRMAN AND CEO

                   Chief Operating Officer Zvi Yaniv Assumes
                         Additional Title of President

        [Austin, TX - July 26, 1996]  The board of directors of SI Diamond 
Technology, Inc. (SIDT) has named Marc Eller Chairman and CEO.  The board also 
named Dr. Zvi Yaniv to the position of president, in addition to his current 
title of chief operating officer.

        Mr. Eller replaces Dr. Howard K. Schmidt, whose resignation as chairman
and CEO was accepted by the board.  Dr. Schmidt will assume the newly created 
position of vice president of new business development and technology.

        Eller has served as vice chairman of SIDT's board of directors since May
of this year.  Through his company, BEG Enterprises, Mr. Eller has extensive 
experience in managing and financing public and private companies.  Dr. Yaniv, a
pioneer in the development of the US display industry was named SIDT's executive
vice president and chief operating officer in June.

        "By accepting this position, I look forward to teaming with Zvi in the 
continued pursuit of transforming SI Diamond and its subsidiaries from 
essentially a research and development status to a focus on revenue and 
profits," says Eller.

About SIDT

        Austin-based SI Diamond is an innovative developer of thin-film diamond 
technology with potential for a variety of applications including flat panel 
displays and high luminance lamps.  Through its Plasmatron subsidiary, the 
company also develops and installs industrial coating systems.  SIDT's Diamond 
Tech One subsidiary provides advanced packaging, assembly, and prototyping 
services for electronic components and systems.  SI Diamond trades on Nasdaq 
under the symbol "SIDT."