EXHIBIT 99.1

COMPANY CONTACT:
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Doug Baker
SI Diamond Technology, Inc.
512.339.5020 X108

FOR IMMEDIATE RELEASE
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              ECKERD AND SI DIAMOND ANNOUNCE AN AGREEMENT TO INSTALL
            DIGITAL BILLBOARDS FOR OUTDOOR POINT-OF-SALE ADVERTISING

AUSTIN,  TEXAS,  FEB.  01, 2000 - SI DIAMOND  TECHNOLOGY,  INC.  (OTC BB:  SIDT)
THROUGH  ITS  SUBSIDIARY,  ELECTRONIC  BILLBOARD  TECHNOLOGY  (EBT)  AND  ECKERD
CORPORATION,  A WHOLLY OWNED SUBSIDIARY OF JCPENNEY (NYSE: JCP), announced today
they have reached an agreement to implement a pilot program for the installation
of two  "sun-visible"  digital  billboards  dedicated to outdoor,  point-of-sale
advertising at Eckerd stores in Tampa, Florida. One of the signs will be located
at a newly  constructed  store. At the other site, EBT will retrofit an existing
sign.

These two  sun-visible  billboards  will be utilized for outdoor,  point-of-sale
advertising for Eckerd Corporation and its vendors.  EBT will own the billboards
and  share  in  the  revenues   generated  by  the  sale  of  advertising.   The
revolutionary,  full-color,  outdoor  electronic  billboards  will  be  remotely
controlled  via the  Internet  from one central  location at Eckerd  Corporation
headquarters in Tampa, Florida. The overall objective of this program will be to
install  electronic  billboards at Eckerd store locations  throughout the United
States, combining them into one powerful network for digital advertising.

"We are very excited to have the  opportunity to combine our hardware,  software
and Internet  technologies with an  infrastructure  such as Eckerd's," said Marc
Eller,  chairman and chief executive officer of SIDT. "We believe our technology
will  revolutionize  outdoor and indoor  point-of-sale  advertising,"  continued
Eller.

"Eckerd is please to have the  opportunity  to  explore  this new  concept  with
SIDT", said Bob Dyer,  director of advertising  services for Eckerd. "The use of
this revolutionary  outdoor concept presents exciting  opportunities to motivate
sales, promote value added services, and reinforce our brand. We look forward to
the pilot store installations!"

SI Diamond  also  announced  that it will hold a conference  call on  Wednesday,
February  2,  2000  at  10:00  a.m.CST  to  discuss  this  and  other   business
developments.  On the day of the call, interested participants should dial (706)
645-9762 to listen to the conference call.

                                    - more -

Eckerd and SI Diamond Announce an Agreement to Install Digital Billboards for
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Outdoor Point-of-Sale Advertising
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Feb.01, 2000
Page 2


SAFE HARBOR STATEMENT
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This press release contains  forward-looking  information  within the meaning of
Section 27A of the Securities Act of 1933, and Section 21E of the Securities Act
of 1934,  and is  subject to the safe  harbor  created  by those  sections.  The
Company's  actual results could differ  materially  from those  projected in the
forward-looking  information.  Future  results may be  impacted by risk  factors
listed  from time to time in SIDT's SEC  reports.  SI Diamond  Technology,  Inc.
disclaims any intent or obligation to update forward-looking information.

SI  Diamond  Technology  is a  holding  company  consisting  of three  operating
subsidiaries.  The Field  Emission  Picture  Element  Technology,  Inc.  (FEPET)
subsidiary is developing products for applications  utilizing SIDT's proprietary
field  emission  technology  and is owned 95 percent by SIDT.  The wholly  owned
Electronic  Billboard  Technology,  Inc.  (EBT)  subsidiary is geared toward the
commercialization  of electronic  digitized  sign  technology.  Sign Builders of
America, Inc. (SBOA), a wholly owned subsidiary of EBT is a manufacturer of high
quality signage.

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