A sign assembly 10 that implements electronic paper to display an animated image. The sign assembly includes a controller 12, a power supply 14, a pair of substantially transparent, electrically conductive sheets 16, 18, and a sheet of electronic paper 24, which is sandwiched between sheets 16, 18. Image layers 20, 22 are imprinted on the sheets 16, 18, or are alternatively held frictionally adjacent to sheets 16, 18 by a frame assembly 56. Image layers 20, 22 include substantially transparent regions 36, 38, 40 and 42 in which sheet 24 is visible. The conductive sheets 16, 18 are connected to controller 12 which provides an electronic signal which is varied over time resulting in the display of an animated or changing image which may be visible when viewed from one or both sides of the sign assembly 10.