|   | [ X      ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)      OF THE SECURITIES EXCHANGE ACT OF1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | [     ]    TRANSITION      REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE  ACT |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| Advance      Display Technologies, Inc.                    |
|------------------------------------------------------------|
| (Exact      name of registrant as specified in itscharter) |

| Colorado                      |   | 84-0969445                    |
|-------------------------------|--------|-------------------------------|
| (State      of incorporation) |   | (IRS      Employer ID number) |

| 7334      South Alton Way, Suite F, Centennial, CO 80112             |
|----------------------------------------------------------------------|
| (Address      of principal executive offices)  (Zip  Code) |

| (303)      267-0111                                        |
|------------------------------------------------------------|
| (Issuer’s      telephone number, including areacode) |

|   | Large      accelerated filer | [   ] |   | Accelerated      filer         | [   ] |   |
|--------|------------------------------|----------------------|--------|--------------------------------|----------------------|--------|
|   |                         |                 |   |                           |                 |   |
|   | Non-accelerated      filer   | [   ] |   | Smaller      reporting company | [X]                  |   |

----

| ADVANCE      DISPLAY TECHNOLOGIES, INC.       |
|-----------------------------------------------|
|                                          |
| INDEX                                         |
|                                          |
| PART      I.  FINANCIAL INFORMATION |
|                                          |
|                                          |   |   |   | Page |
|                                          |   |   |   |   |
| Item      1.                                  |   | Consolidated      Balance Sheets - |   |   |
|                                          |   |     September      30, 2008 (unaudited) and June 30, 2008 |   | 1 |
|                                          |   |   |   |   |
|                                          |   | Consolidated      Statements of Operations (unaudited) |   |   |
|                                          |   |     Three      months ended September 30, 2008 and 2007 and for the |   |   |
|                                          |   |     period      from March 15, 1995, inception, to September 30, 2008 |   | 2 |
|                                          |   |   |   |   |
|                                          |   | Consolidated      Statements of Cash Flows (unaudited) |   |   |
|                                          |   |     Three      months ended September 30, 2008 and 2007 and for the |   |   |
|                                          |   |     period      from March 15, 1995, inception, to September 30, 2008 |   | 3 |
|                                          |   |   |   |   |
|                                          |   | Notes      to Consolidated Financial Statements (unaudited) |   | 5 |
|                                          |   |   |   |   |
| Item      2.                                  |   | Management’s      Discussion and Analysis of Financial Condition |   |   |
|                                          |   |     and      Results of Operations |   | 11 |
|                                          |   |   |   |   |
| Item      3.                                  |   | Quantitative      and Qualitative Disclosures About Market Risk |   | 17 |
|                                          |   |   |   |   |
| Item      4T.                                 |   | Controls      and Procedures |   | 17 |
|                                          |   |   |   |   |
|                                          |   | PART      II.  OTHER INFORMATION |   |   |
|                                          |   |   |   |   |
| Item      1.                                  |   | Legal      Proceedings |   | 18 |
|                                          |   |   |   |   |
| Item      1A.                                 |   | Risk      Factors |   | 18 |
|                                          |   |   |   |   |
| Item      2.                                  |   | Unregistered      Sales of Equity Securities and Use of Proceeds |   | 18 |
|                                          |   |   |   |   |
| Item      3.                                  |   | Defaults      Upon Senior Securities |   | 19 |
|                                          |   |   |   |   |
| Item      4.                                  |   | Submission      of Matters to a Vote of Security Holders |   | 19 |
|                                          |   |   |   |   |
| Item      5.                                  |   | Other      Information |   | 19 |
|                                          |   |   |   |   |
| Item      6.                                  |   | Exhibits |   | 20 |
|                                          |   |   |   |   |
|                                          |   | Signatures |   |   |

----

|                                                                                                                                                              |   | September      30,2008 |         |   | June      30,2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------------|--------|-------------------|--------|
|                                                                                                                                                              |   | (Unaudited)            |         |   |              |   |
| ASSETS                                                                                                                                                            |   |
| Current      Assets:                                                                                                                                              |   |                   |         |   |              |   |
| Cash                                                                                                                                                              |   | $                      | 146,900      |   |              | $      | 1,271,364 |   |
| Component    inventory                                                                                                                                            |   |                   | 319,910      |   |              |   | 224,314 |   |
| Work in progress      inventory                                                                                                                                   |   |                   | 190,856      |   |              |   | 102,561 |   |
| Vendor deposits                                                                                                                                                   |   |                   | 4,100        |   |              |   | 33,400 |   |
| Other current    assets                                                                                                                                           |   |                   | 49,036       |   |              |   | 57,512 |   |
| Total current    assets                                                                                                                                           |   |                   | 710,802      |   |              |   | 1,689,151 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Property      and Equipment, Net                                                                                                                                  |   |                   | 1,382,255    |   |              |   | 1,153,892 |   |
| Deferred      Manufacturing Costs, Net                                                                                                                            |   |                   | 475,930      |   |              |   | 407,232 |   |
| Deposits                                                                                                                                                          |   |                   | 31,353       |   |              |   | 31,353 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Total Assets                                                                                                                                                      |   | $                      | 2,600,340    |   |              | $      | 3,281,628 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| LIABILITIES AND      STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                         |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Current      Liabilities:                                                                                                                                         |   |                   |         |   |              |   |   |   |
| Accounts payable                                                                                                                                                  |   |                   |         |   |              |   |   |   |
| Trade                                                                                                                                                             |   | $                      | 549,228      |   |              | $      | 989,450 |   |
| Related party                                                                                                                                                     |   |                   | 45,259       |   |              |   | 35,821 |   |
|        Revolving,      convertible, redeemable promissory notes to relatedparties                                              |   |                   | 740,000      |   |              |   | 740,000 |   |
|        Demand      notes to related parties                                                                                    |   |                   | 2,100,000    |   |              |   | 800,000 |   |
|        Accrued      interest payable to related parties                                                                        |   |                   | 370,419      |   |              |   | 321,008 |   |
| Other accrued      liabilities                                                                                                                                    |   |                   | 30,945       |   |              |   | 49,808 |   |
| Total current      liabilities                                                                                                                                    |   |                   | 3,835,851    |   |              |   | 2,936,087 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Long-term      obligations, less current maturities                                                                                                               |   |                   | 28,732       |   |              |   | 19,729 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Total liabilities                                                                                                                                                 |   |                   | 3,864,583    |   |              |   | 2,955,816 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                |   |                   |         |   |              |   |   |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Stockholders’      Equity (Deficit):                                                                                                                        |   |                   |         |   |              |   |   |   |
| Preferred Series D stock, $.001      par value, 70,100,000 shares authorized, 30,570,742 shares issued and      outstanding (liquidation preference of $510,531). |   |                   | 30,571       |   |              |   | 30,571 |   |
| Preferred Series E stock, $.001      par value, 1,008,985 shares authorized, 1,008,985 shares issued and      outstanding (liquidation preference of $1,252,817). |   |                   |  1,009  |   |              |   |  1,009 |   |
| Preferred Series F stock, $.001      par value, 4,549,015 shares authorized, 4,549,015 shares issued and      outstanding (liquidation preference of $4,549,015). |   |                   |  4,549  |   |              |   |  4,549 |   |
| Preferred Series G stock, $.001      par value, 100,000 shares authorized, 90,544 shares issued and outstanding      (liquidation preference of $8,802,750).      |   |                   | 91           |   |              |   | 91 |   |
| Common stock, $.001 par value,      175,000,000 shares authorized, 26,198,177 issued and      outstanding                                                         |   |                   |  26,199 |   |              |   | 26,199 |   |
| Additional paid-in      capital                                                                                                                                   |   |                   | 20,491,514   |   |              |   | 20,442,137 |   |
| Deficit accumulated during the      development stage                                                                                                             |   |                   | (21,818,176  | )      |              |   | (20,178,744 | ) |
| Total stockholders’ equity      (deficit)                                                                                                                   |   |                   | (1,264,243   | )      |              |   | 325,812 |   |
|                                                                                                                                                              |   |                   |         |   |              |   |   |   |
| Total      Liabilities and Stockholders’ Equity (Deficit)                                                                                                   |   | $                      | 2,600,340    |   |              | $      | 3,281,628 |   |

----

|                                                                |   | Three      Months EndedSeptember      30, |       |   | March      15, 1995 (Inception) ThroughSeptember      30, |   |
|---------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|-----------------------------------------------------------|--------|
|                                                                |   | 2008                                      |       |   | 2007                                                      |   |   | 2008 |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |
| Consulting      Revenue                                             |   | $                                         | ---        |   |                                                      | $      | --- |   |   | $ | 91,014 |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Other      Income:                                                  |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Related party interest      income                                  |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 162,761 |   |
| Other interest      income                                          |   |                                      | 430        |   |                                                      |   | 5,784 |   |   |   | 29,430 |   |
| Settlement    Income                                                |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 463,179 |   |
| Other                                                               |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 550 |   |
| Total revenue and other      income                                 |   |                                      | 430        |   |                                                      |   | 5,784 |   |   |   | 746,934 |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Costs      and Expenses:                                            |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
|       Cost      of consulting revenue |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 93,648 |   |
| Manufacturing      operations                                       |   |                                      | 754,507    |   |                                                      |   | --- |   |   |   | 1,303,794 |   |
| General and      administrative                                     |   |                                      | 476,409    |   |                                                      |   | 338,148 |   |   |   | 7,495,422 |   |
| Marketing                                                           |   |                                      | 289,260    |   |                                                      |   | 39,176 |   |   |   | 1,245,150 |   |
| Research and      development                                       |   |                                      | 70,275     |   |                                                      |   | 1,104,371 |   |   |   | 8,151,664 |   |
| Impairment of intangible      assets                                |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 451,492 |   |
| Interest expense – related      party                         |   |                                      | 49,411     |   |                                                      |   | 39,356 |   |   |   | 4,059,099 |   |
| Total costs and      expenses                                       |   |                                      | 1,639,862  |   |                                                      |   | 1,521,051 |   |   |   | 22,800,269 |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Loss      Before Discontinued Operations and Extraordinary Gain     |   | $                                         | (1,639,432 | )      |                                                      | $      | (1,515,267 | ) |   | $ | (22,053,335 | ) |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Loss      from discontinued operations                              |   |                                      | ---        |   |                                                      |   | --- |   |   |   | (202,278 | ) |
| Gain      on disposal of discontinued operations                    |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 108,652 |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Loss      Before Extraordinary Gain                                 |   | $                                         | (1,639,432 | )      |                                                      | $      | (1,515,267 | ) |   | $ | (22,146,961 | ) |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Extraordinary      gain due to forgiveness of debt                  |   |                                      | ---        |   |                                                      |   | --- |   |   |   | 328,785 |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| NET      LOSS                                                       |   | $                                         | (1,639,432 | )      |                                                      | $      | (1,515,267 | ) |   | $ | (21,818,176 | ) |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Accrued      Preferred Series E Dividend                            |   |                                      | (12,612    | )      |                                                      |   | (12,612 | ) |   |   | (243,832 | ) |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Net      Loss Applicable to Common Shareholders                     |   | $                                         | (1,652,044 | )      |                                                      | $      | (1,527,879 | ) |   | $ | (22,062,008 | ) |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Net      loss per common share  (Basic and Dilutive):     |   | $                                         | (.06       | )      |                                                      | $      | (.06 | ) |   |   |   |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |
| Weighted      Average Number of Common Shares Outstanding           |   |                                      | 26,198,177 |   |                                                      |   | 26,198,177 |   |   |   |   |   |
|                                                                |   |                                      |       |   |                                                      |   |   |   |   |   |   |   |

----

|                                                                                                    |   | Three      Months EndedSeptember      30, |           |    | March      15, 1995(Inception)      ThroughSeptember      30, |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|----------------|---------|---------------------------------------------------------------|--------|
|                                                                                                    |   | 2008                                      |           |    | 2007                                                          |   |   | 2008 |   |
| Cash      Flows from Operating Activities:                                                              |   |                                      |           |    |                                                          |   |   |   |   |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |
| Net      (Loss)                                                                                         |   | $                                         | (1,639,432     | )       |                                                          | $      | (1,515,267 | ) |   | $ | (21,818,176 | ) |
| Adjustments      to reconcile net (loss) to net cash used  in      operating activities: |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Loss from discontinued      operations                                                                  |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 202,278 |   |
| Gain on disposition of      discontinued operations                                                     |   |                                      | ---            |    |                                                          |   | --- |   |   |   | (108,652 | ) |
| Gain on debt      forgiven                                                                              |   |                                      | ---            |    |                                                          |   | --- |   |   |   | (496,777 | ) |
| Acquired research and      development expense                                                          |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 2,536,494 |   |
| Impairment of intangible      asset                                                                     |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 451,492 |   |
| Impairment of    assets                                                                                 |   |                                      | 374,957        |    |                                                          |   | --- |   |   |   | 755,330 |   |
| Depreciation and      amortization                                                                      |   |                                      | 160,541        |    |                                                          |   | 7,056 |   |   |   | 566,202 |   |
| Amortization of deferred merger      costs                                                              |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 75,000 |   |
| Stock and stock option      compensation expense                                                        |   |                                      | 49,377         |    |                                                          |   | 45,686 |   |   |   | 498,519 |   |
| Interest expense related to debt      discount                                                          |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 1,893,573 |   |
| Loss on sale of property and      equipment                                                             |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 7,015 |   |
| (Increase)  decrease      in:                                                                 |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Inventory                                                                                               |   |                                      | (      558,848 | )       |                                                          |   | --- |   |   |   | (1,205,067 | ) |
|     Vendor      deposits                                                            |   |                                      | 29,300         |    |                                                          |   | --- |   |   |   | (4,100 | ) |
| Other current    assets                                                                                 |   |                                      | 8,476          |    |                                                          |   | ( 8,088 | ) |   |   | (105,521 | ) |
| (Decrease)  increase      in:                                                                 |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Accounts payable                                                                                        |   |                                      | (430,784       | )       |                                                          |   | 366,821 |   |   |   | 556,788 |   |
| Accrued interest payable to      shareholders                                                           |   |                                      | 49,411         |    |                                                          |   | 39,356 |   |   |   | 2,092,574 |   |
| Other accrued      liabilities                                                                          |   |                                      | (16,973        | )       |                                                          |   | (12,935 | ) |   |   | (147,261 | )  |
| Net cash used in operating      activities                                                              |   |                                      | (1,973,975     | )       |                                                          |   | (1,077,371 | ) |   |   | (14,250,289 | ) |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Cash      Flows from (to) Investing Activities:                                                         |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Purchases of property and      equipment                                                                |   |                                      | (336,577       | )       |                                                          |   | (25,647 | ) |   |   | (1,747,070 | ) |
| Proceeds from sale of property      and equipment                                                       |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 17,030 |   |
| Long-term    deposits                                                                                   |   |                                      | ---            |    |                                                          |   | --- |   |   |   | (31,353 | ) |
| Deferred manufacturing      costs                                                                       |   |                                      | (112,630       | )       |                                                          |   | --- |   |   |   | (525,598 | ) |
| Advances to      affiliates                                                                             |   |                                      | ---            |    |                                                          |   | --- |   |   |   | (932,925 | ) |
| Purchase of notes receivable and      security interest                                                 |   |                                      | ---            |    |                                                          |   | --- |   |   |   | (225,000 | ) |
| Cash received in      acquisition                                                                       |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 303,812 |   |
| Net cash used in investing      activities                                                              |   |                                      | (449,207       | )       |                                                          |   | (25,647 | ) |   |   | (3,141,104 | ) |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Cash      Flows from (to) Financing Activities:                                                         |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Proceeds from stock      sales                                                                          |   |                                      | ---            |    |                                                          |   | 500,000 |   |   |   | 9,505,877 |   |
|     Proceeds      from exercise of options                                          |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 14,400 |   |
| Proceeds from notes payable to      shareholders                                                        |   |                                      | 1,300,000      |    |                                                          |   | --- |   |   |   | 7,729,754 |   |
| Proceeds from      line-of-credit                                                                       |   |                                      | ---            |    |                                                          |   | --- |   |   |   | 299,505 |   |
|     Principal      payments on leased equipment                                     |   |                                      | (1,282         | )  |                                                          |   | (313 | )  |   |   | (11,243 | ) |
| Net cash provided by financing      activities                                                          |   |                                      | 1,298,718      |    |                                                          |   | 499,687 |   |   |   | 17,538,293 |   |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |
| Increase      (decrease) in cash                                                                        |   |                                      | (1,124,464     | )       |                                                          |   | (603,331 | ) |   |   | 146,900 |   |
| Cash      and cash equivalents, Beginning of Period                                                     |   |                                      | 1,271,364      |    |                                                          |   | 1,237,599 |   |   |   | --- |   |
| Cash      and cash equivalents, End of Period                                                           |   | $                                         | 146,900        |    |                                                          | $      | 634,268 |   |   | $ |  146,900 |   |
|                                                                                                    |   |                                      |           |    |                                                          |   |   |   |   |   |   |   |

----

|                                                                                                                                 |   | Three      Months EndedSeptember      30, |   |   | March      15, 1995(Inception)      ThroughSeptember      30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                                                                                 |   | 2008                                      |   |   | 2007                                                          |   |   | 2008 |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |
| Supplemental      Disclosure of Cash Flow Information:                                                                               |   |                                      |   |   |                                                          |   |   |   |   |
| Cash      paid for:                                                                                                                  |   |                                      |   |   |                                                          |   |   |   |   |
| Interest                                                                                                                             |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 26,570 |   |
| Non-cash      transactions:                                                                                                          |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
| Issuance      of common stock for acquisition of Display Group, LLC and Display Optics,      Ltd. and conversion of convertible debt |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 2,199,026 |   |
| Conversion      of notes payable stockholders to common stock                                                                        |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 550,000 |   |
| Conversion      of interest payable on notes to notes payable                                                                        |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 12,354 |   |
| Retirement      of shares in settlement                                                                                              |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 1,402 |   |
| Extinguishment      of debt and trade payables                                                                                       |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 496,777 |   |
| Acquired      membership interest in Regent Theaters and Regent  Releasing,      LLC                                       |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 50,000 |   |
| Conversion      of Preferred Series C stock to common stock                                                                          |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 1,844 |   |
| Subscriptions      for Preferred Series D stock                                                                                      |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 400,000 |   |
| Cancellation      of Subscriptions for Preferred Series D stock                                                                      |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | (325,000 | )  |
| Conversion      of interest on convertible, redeemable                                                                               |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
|   promissory      notes to Preferred Series D Stock                                                                        |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 80,000 |   |
| Conversion      of demand notes and accrued interest to Preferred Series E      stock                                                |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 1,008,985 |   |
| Conversion      of convertible, redeemable Promissory notes, demand notes and accrued      interest to Preferred Series F stock      |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 4,549,015 |   |
| Acquisition      of 15,000,000 shares of Preferred Series D stock                                                                    |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 75,000 |   |
| Equipment      acquired under capital lease                                                                                          |   | $                                         | 8,395  |   |                                                          | $      | --- |   |   | $ | 42,606 |   |
| Issuance      of Common Stock for debt                                                                                               |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 5,000 |   |
| Issuance      of  shares of Preferred Series D stock for deferred      compensation                                        |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 304,500 |   |
| Cancellation      of unearned Preferred Series D stock                                                                               |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | (297,491 | ) |
| Subscriptions      for Preferred Series G stock                                                                                      |   | $                                         | ---    |   |                                                          | $      | --- |   |   | $ | 1,008,000 |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                      |   |   |                                                          |   |   |   |   |   |   |   |

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| Quarter      EndedSeptember 30, | Preferred      Series D stock | PreferredSeries G stock | Convertible,      redeemable promissory      notes | Interest      on convertible redeemable promissory      notes | Vested      Stock Options |
|---------------------------------|-------------------------------|-------------------------|----------------------------------------------------|---------------------------------------------------------------|---------------------------|
|                            |                          |                    |                                               |                                                          |                      |
| 2008                            | 30,570,742                    | 90,544,000              | 44,311,377                                         | 10,259,605                                                    | 2,278,125                 |
|                            |                          |                    |                                               |                                                          |                      |
| 2007                            | 25,780,322                    | 40,705,000              | 44,311,377                                         | 10,545,035                                                    | 1,521,875                 |

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KETRISK

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|   | Exhibit No. |   | Description                                                                                                              |
|--------|-------------|--------|--------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                     |
|   | 31          |   | Certificate      of Chief Executive and Financial Officer pursuant to Section 302 of The      Sarbanes-Oxley Act of 2002 |
|   |        |   |                                                                                                                     |
|   | 32          |   | Certificate      of Chief Executive and Financial Officer pursuant to Section 906 of The      Sarbanes-Oxley Act of 2002 |

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|                                    | ADVANCE      DISPLAY TECHNOLOGIES, INC.(Registrant)      |
|-----------------------------------------|------------------------------------------------------------------------------|
| Date:      November 18, 2008            | /s/  Matthew      W. Shankle                                       |
|                                    | Matthew      W. ShanklePresident,      Chief Executive and Financial Officer |
|                                    |                                                                         |
| Date:  November      18, 2008 | /s/  Rebecca      L. McCall                                        |
|                                    | Rebecca      L. McCallVP      of Accounting, Chief AccountingOfficer         |