Mercedes-Benz Chooses Perceptron AutoGauge(TM) Systems For its Tuscaloosa, Ala. Plant

      Largest Flexible Measurement System Installation in North America

    PLYMOUTH, Mich., Jan. 21 /PRNewswire-FirstCall/ --
Perceptron, Inc. today announced Mercedes-Benz U.S. will
install its AutoGauge(TM) flexible measurement systems (FMS) for use in the
next generation M-Class to be produced in Tuscaloosa, Ala.  Installation in
Tuscaloosa is expected in 2003.
    The systems, which will be provided through body shop supplier Comau PICO
of Southfield, MI, were selected because of their power and ease of use,
coupled with Perceptron's extensive experience in flexible measurement and
proven ability to support major automotive programs.
    "Our European customers have been faced with the need to build multiple
models at lower volumes on the same production line," says Bill Corriveau,
Perceptron senior vice president.  "We specifically developed a robotic
measurement system to meet this need.  Today over 80 of our systems are in
operation.  AutoGauge(TM) FMS is our latest offering.  It is a second-
generation flexible measurement system incorporating the knowledge and
experience gained from working closely with European automakers.  This
experience places us in a unique position to meet the North American
automakers' needs as they move to more flexible manufacturing."

    About Perceptron AutoGauge FMS
    AutoGauge(TM) FMS is a flexible, non-contact measurement system that uses
laser sensors mounted on standard industrial robots to measure important
dimensional features on parts or assemblies.  The system provides a single
measurement station with the flexibility to perform in-line or off-line
measurements on a variety of parts or assemblies.  AutoGauge(TM) FMS software
integrates the system setup and analysis functions into a common web-based
software package that can be easily configured by the user.  AutoGauge(TM) FMS
is built upon Perceptron's IPNet(TM) platform, which provides automatic
alarming capabilities and web-based reporting to help manufacturers reduce
process variation, determine the root causes of problems, and implement
process improvements.

    About Perceptron
    Perceptron produces information-based process improvement solutions for
industry as well as technology components for non-contact measurement and
inspection applications.  Automotive and manufacturing companies throughout
the world rely on Perceptron's process management solutions to help them
improve quality, shorten product launch times and reduce overall manufacturing
costs.
    Headquartered in Plymouth, MI, Perceptron has approximately 214 employees
worldwide, with facilities in the United States, Germany, Slovakia, Spain,
France, Brazil, and Japan.  For more information, please visit
http://www.perceptron.com .

    SAFE HARBOR STATEMENT
    Certain statements in this press release may be "forward-looking
statements" within the meaning of the Securities Exchange Act of 1934,
including the Company's expectation as to the timing of delivery of certain
bookings.  The Company assumes no obligation for updating any such forward-
looking statements to reflect actual results, changes in assumptions or
changes in other factors affecting such forward-looking statements.  Actual
results could differ materially from those in the forward-looking statements
due to a number of uncertainties in addition to those set forth in the press
release, including, but not limited to, the timing of orders and shipments,
which can cause the Company to experience significant fluctuations in its
quarterly and annual revenue and operating results, timely receipt of required
supplies and components which could result in delays in anticipated shipments,
the timing and continuation of the Automotive industry's retooling programs
and the effect of economic conditions, particularly economic conditions in the
domestic and worldwide Automotive industry, which has from time to time been
subject to cyclical downturns due to the level of demand for, or supply of,
the products produced by companies in this industry.  The Company's
expectations regarding the timing of delivery of certain bookings are based
upon oral discussions with customers and are subject to change based upon a
wide variety of factors, including economic conditions and system
implementation delays.  New orders have been delayed in the past and could be
delayed in the future.  Because the Company's products are typically
integrated into larger systems or lines, the timing of new order delivery is
dependent on the timing of completion of the overall system or line.