Robotic Vision Systems Selected for World-wide Automotive Power Train Traceability Program

NASHUA, N.H., May 9, 2003 -- Robotic Vision Systems, Inc. (RVSI) today said its Acuity CiMatrix division has been selected as the preferred supplier to provide a series of products for a world-wide traceability initiative by one of the world's largest automotive companies. The selection of the RVSI DMx Auto ID+Express reading and verification system was made after comprehensive product testing of Data Matrix reading technology from multiple vendors.

The manufacturer's initiative calls for the implementation of component- level traceability of all automotive power train components over the next two years. Each part will be marked with a unique serial number encoded in a machine-readable, two-dimensional Data Matrix symbol. This will allow the part to be tracked and identified, starting with the manufacturing process and then continuing throughout its performance life cycle.

The selection was made by Indicon Corporation of Sterling Heights, MI. Indicon is a key system engineering and integration firm to some of the world's largest automotive manufacturers.

"After putting RVSI's equipment through a comprehensive set of tests, it was clear that there was only one choice to meet our customer's performance metrics," said David Kiras, Director of Traceability for Indicon.

The traceability initiative is designed to eliminate the expense of broad recalls to rectify problems that may affect only a small percentage of vehicles.

"In the near future, automotive manufacturers will have the capability to identify each specific component," said Ray England, Vice President -- Worldwide Sales and Marketing for RVSI Acuity CiMatrix. "When a problem is suspected, engineers will be able to determine the specific vehicles containing that component, and issue an advisory to the owner of that vehicle even before the customer is aware of a problem. Instead of recalling every vehicle manufactured over a time period to find 100 'suspected' parts, each of the parts can be identified by its serial number and the Vehicle Identification Number where it was installed. The dealer and owner can then be readily contacted with specific instructions to remedy the problem."

RVSI expects to ship its first products under this traceability initiative in the current quarter. The company believes that shipments to the automotive manufacturer and its first-tier suppliers will exceed $1 million over the next twelve months.

"Linear bar codes printed on paper labels have no place in an application such as this," said John Agapakis, Vice President -- Products for RVSI Acuity CiMatrix. "This is an environment in which parts are moving at high speeds and with considerable build-up of heat, dirt, and other contaminants. Similarly, data tags or buttons that must be physically attached to a part will interfere with the part's operation.

"Automotive power trains are an ideal application for Data Matrix marks applied directly to parts via ink-jet printing, dot peening, or laser etching. Two-dimensional bar codes represent an important technology improvement in that they store substantial amounts of information in a small space and allow for error correction to be built into the mark," Mr. Agapakis said. "A Data Matrix mark a millimeter on a side can encode enough information to provide a complete manufacturing history of the component. In addition, two-dimensional codes such as Data Matrix encode information digitally, providing the ability to print them directly on the part at a very low contrast."

Mr. England said that, while the power train traceability program for which RVSI is supplying products is the first in the industry to reach a roll- out stage, the concept is applicable across the industry. "We are working with most of the world's principal automotive companies on comparable systems," Mr. England said. "They all recognize that component traceability is a concept whose time has come; it is a matter of how best to implement traceability programs."

About RVSI

Robotic Vision Systems, Inc. (RVSI) has the most comprehensive line of machine vision systems available today. Headquartered in Nashua, New Hampshire, with offices worldwide, RVSI is the world leader in vision-based semiconductor inspection and Data Matrix-based unit-level traceability. Using leading-edge technology, RVSI joins vision-enabled process equipment, high-performance optics, lighting, and advanced hardware and software to assure product quality, identify and track parts, control manufacturing processes, and ultimately enhance profits for companies worldwide. Serving the semiconductor, electronics, aerospace, automotive, pharmaceutical and packaging industries, RVSI holds approximately 100 patents in a broad range of technologies. For more information visit www.rvsi.com or call (800) 669-5234.

Forward Looking Statement

Except for the historical information herein, certain matters discussed in this release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to: the historical cyclical nature of the semiconductor industry, risks in products and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timely development and release of new products, strategic suppliers and customers, the effect of the company's accounting policies and other risk factors detailed in the Company's most recent registration statement, annual report on Form 10-K and 10K/A, and other filings with the Securities and Exchange Commission.