Robotic Vision Systems, Inc. Selected As Vendor of Choice By Two Major European Automotive Companies

STUTTGART, Germany, Oct. 22, 2003 -- Robotic Vision Systems, Inc. (RVSI) today said it has been selected as vendor of choice for Data Matrix reading programs by two of Europe's largest automotive companies. RVSI has received initial orders from these companies totaling approximately $350,000 for programs that, when fully implemented, will require Data Matrix reading equipment worth substantially in excess of $1 million.

The two companies are embarking on programs -- planned and implemented independently -- to use Data Matrix two-dimensional bar codes as a means of providing unit-level traceability for automotive power trains. The companies will stamp Data Matrix bar codes into engine components that will allow those components to be uniquely identified across the manufacturing process. RVSI's smart-camera-based readers will be used to read these Data Matrix marks on parts, providing a detailed manufacturing history of each part.

"Unit-level traceability is rapidly becoming an important key to improving quality and productivity," said Ray England, Vice President -- Worldwide Sales & Marketing for RVSI Acuity CiMatrix. "Parts that are visually indistinguishable from one another can in fact vary from lot to lot and from part to part. Automotive companies are recognizing that serializing those parts can mean a rapid payback when one part is found to be defective. Serializing the parts allows the manufacturer to identify and examine other parts that share the same manufacturing heritage."

Dr. John Agapakis, Sr. Vice President -- Products for RVSI Acuity CiMatrix, noted that, as the inventor of the Data Matrix code, RVSI's extensive experience with the technology has translated into a very robust solution for our users. "Reading a Data Matrix in an industrial environment - - say, a dot-peened code on a curved surface under a layer of oil -- is very different from reading a high-contrast Data Matrix printed label," he said. "We have a lengthy head start on would-be competitors in imaging, decoding, and verifying directly marked Data Matrix codes and communicating that information to data bases."

RVSI's products will be initially deployed at facilities in Europe and in Latin America, with a roll-out in 2004 and 2005.

Mr. England said he was gratified that RVSI's products had been chosen over those of multiple competitors. "Both companies surveyed and tested the entire field of imaging products," he said. "They determined that RVSI had the best products and delivered consistently reliable results. In the end, quality and Data Matrix reading ability was what mattered."

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 annual report on Form 10-K, and other filings with the Securities and Exchange Commission.