Cognex Corporation Reports Slowdown in Business

Machine Vision Company Lowers Expectations for Fourth Quarter 2000

NATICK, Mass., (Business Wire) November 27, 2000 - Cognex Corporation (NASDAQ: CGNX ) today announced that the order rate in the fourth quarter has slowed from the record pace experienced in the third quarter.  The slowdown is due both to a lower level of new orders from customers who make capital equipment for the semiconductor and electronics industries as well as a push-out of an existing order by one of those customers.

"Although demand for our products remains significantly higher than it was in the fourth quarter of 1999, the order rate has slowed considerably from the record pace experienced in the third quarter of 2000," said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer and Chairman.  "We continue to expect to report record results for the full year 2000; however, the results for the fourth quarter will be below our earlier projections.  We now believe that revenue will be approximately $65 million for the fourth quarter, and, as a result, that earnings will be approximately $0.36 per share."

About Cognex Corporation

Cognex Corporation designs, develops, manufactures and markets machine vision systems, or computers that can "see."  Cognex is the world's leader in the machine vision industry, having shipped to date more than 100,000 machine vision systems, representing over $1 billion in cumulative revenue since the company's founding in 1981.  Cognex's Modular Vision Systems Division, headquartered in Natick, Massachusetts, specializes in machine vision systems which are used for automating the manufacture of a widr range of discrete items and for assuring their quality.  Cognex's Surface Inspection Systems Division, headquartered in Alameda, California, specializes in machine vision systems, also known as web inspection systems, which are used for inspecting the surfaces of products manufactured in a continuous fashion, such as metals, paper, and plastics.  In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices located throughout North America, Japan, Europe and Southeast Asia.  Visit Cognex online at http://www.cognex.com.

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Forward-Looking Statement

Certain statements made in this press release are forward-looking statements.  These statements are based on the company's current expectations and estimates as to prospective events and circumstances which may or may not be in the company's control and as to which there can be no firm assurances given.  These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated.  The company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.  The company disclaims any obligation subsequently to revise forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.  Further discussions of risk factors are also available in the company's registration statements filed with the Securities and Exchange Commission.

Contact: 
Susan Conway
Investor Relations Manager
Cognex Corporation
(508) 650-3353