Coreco to Acquire Imaging Technology Incorporated

Share of vision market more than doubles

Montreal -- Coreco Inc., a leader in computer vision products, announced today that it will acquire Imaging Technology, Incorporated ("ITI") of Bedford, Massachusetts, from Fairey Group plc for approximately US$14.5 million in cash. Subject to the fulfillment of certain conditions precedent, Coreco will purchase all of the shares of ITI on June 30, 2000.

ITI designs, manufactures and sells high-performance computer vision hardware and software solutions for use in manufacturing process, test, and inspection applications. Founded in the early 1980s, ITI's computer imaging technology serves mostly end users in the R&D, defense, medical-testing and automated inspection industries. ITI's revenues from sales for the year ended December 31, 1999 were approximately US$15 million.

With the acquisition of ITI, Coreco increases its product line and gains new distribution channels as well as a team of highly skilled and dedicated employees. ITI has a solid U.S. presence with sales offices strategically located in Cleveland (OH), Boston (MA) and San Juan Capistrano (CA), as well as being well-positioned with European and Asian distributors.

"This acquisition is a perfect strategic fit for Coreco on a number of levels allowing us to more than double our share of the vision market," commented President and CEO Keith Reuben.   "Geographically, it provides us with a cross-country presence in the U.S. and increases our coverage in Europe and Asia."

"Imaging Technology also expands our customer base," continued Mr. Reuben. "It brings us a completely different set of OEM customers as well as a network of large system integrators."

"Most importantly, Imaging Technology offers products that are complementary to the hardware and software of Coreco, with no more than 5% overlap in our product lines. Coreco will now be able to offer our customers a complete range of vision products."

"Finally, from a financial standpoint, our acquisition of Imaging Technology is equally compelling," concluded Mr. Reuben.  "We are anticipating that it will more than double our annual revenues and contribute to solid growth in earnings.  Moreover, as the integration of our two operations is carried out, we expect that synergies arising from the combination of our manufacturing and sales networks will further enhance our earnings and shareholder value."

Coreco is a leader in the design, development, manufacturing and marketing of cutting edge hardware and related products for the computer vision industry.  The Company's principal products are imaging boards, which enable computers to see, analyze and process visual information.  They are used in high-end applications primarily for the medical imaging, machine vision and industrial inspection markets.  Founded in 1979, Coreco's continuing success is driven by its commitment to the research and development of value-added products that meet the needs of the evolving computer vision market.