MINNEAPOLIS, August 18, 2004 / PR Newswire / -- PPT VISION, Inc. (Nasdaq: PPTV) today announced financial results for its fiscal third quarter ending July 31, 2004. Revenues for the third quarter were $2.7 million, a 35% improvement over revenues of $2.0 million for the same period in fiscal 2003. The Company s net loss was $243,000 or $0.02 per share compared to a net loss of $951,000 or $0.09 per share for the same period in fiscal 2003.

For the nine-month period, revenues increased 22% to $7.8 million, compared with $6.4 million for the previous year. The Company reported a net loss of $812,000 compared to a net loss of $3.9 million during the first nine months of the previous year. Net loss per share for the nine-month period was $0.07 versus a net loss per share of $0.39 in the prior year.

“We are pleased that we are continuing to see a steady increase in our revenue levels overall, but even more excited about the fact that we saw very strong growth in our core 2D revenues this quarter,” stated Mr. Joe Christenson, President of PPT VISION, Inc. “Not only did our 2D products and services revenues grow by 35% over the third quarter of last fiscal year, but 2D revenues also grew a strong 20% over 2D revenues recorded in the second quarter of this fiscal year. This growth was led by sales of our IMPACT product line which grew 40% this quarter over last quarter and improved almost three fold in a year. We are gratified that so many customers are realizing the benefits and value of our IMPACT products and we believe that these products will continue to gain acceptance and momentum in the market place,” continued Mr. Christenson.

“Our investments over the past two years in new product development and in the growth of our partnerships with our system integrators and distributors throughout the world, are clearly paying dividends. We will continue to work hard to build on the momentum that we have achieved by expanding our product capabilities, our marketing efforts and our relationships with key selling partners and customers,” concluded Mr. Christenson.

About IMPACT

In May, PPT introduced an important new product, the IMPACT T10 Intelligent Camera, which utilizes PPT VISION s robust Inspection Builder software and as a result it is the first intelligent camera that provides customers with all the features of a full-scale vision system. With the introduction of the IMPACT T10, PPT has established two IMPACT machine vision product lines: the existing, higher performance C-series, where the processor is separate from the camera, and the lower-priced, fully self-contained T-series intelligent camera. PPT Vision markets the IMPACT products through a growing global network of system integration and distribution partners, as well as directly to large end user and OEM customers.

About PPT VISION

PPT VISION, Inc. develops and markets 2D and 3D machine vision-based automated inspection systems for manufacturing applications. Machine vision-based systems enable manufacturers to realize significant economic paybacks by increasing the quality of manufactured parts and improving the productivity of manufacturing processes. The Company s 2D and 3D machine vision product lines are sold on a global basis to original equipment manufacturers (OEMs), system integrators, machine builders, and end-users, primarily in the electronic and semiconductor component, automotive, medical device, and packaged goods industries. The Company s SpeedScan 3D sensor product incorporates PPT VISION’s patented high-speed Scanning Moiré Interferometry technology. The Company s Common Stock trades on the Nasdaq Small Cap Market tier of The Nasdaq Stock Market under the symbol PPTV. For more information, please see the PPT VISION, Inc. web site at www.pptvision.com.

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