PPT VISION, Inc. Reports Record Revenue and Unit Shipments for the Third Quarter

MINNEAPOLIS -- PPT VISION, Inc. (Nasdaq: PPTV) today announced financial results for the third quarter ended July 31, 2000.  Net revenues for the third quarter were a record $4,714,000, an increase of 62% compared to net revenues of $2,915,000 for the same period in fiscal 1999.  The Company's net loss, excluding non-recurring legal costs of $1,319,000, was $329,000 or 6 cents per share compared to a net loss of $1,044,000 or 19 cents per share for the same period in fiscal 1999.  The net loss for the quarter ended July 31, 2000, including non-recurring legal costs, was 31 cents per share.  The non-recurring legal costs include a one-time final settlement payment and related legal expenses associated with the previously announced lawsuit with National Instruments Corporation.

For the nine-month period, net revenues increased 64% to $12,945,000, compared with $7,897,000 for the previous year.  The Company's net loss, excluding non-recurring legal costs of $1,700,000, was $1,194,000 or 23 cents per share compared to a net loss of $2,162,000 or 40 cents per share for the same period in fiscal 1999.  The net loss for the quarter ended July 31, 2000, including non-recurring legal costs, was 55 cents per share.

During the quarter the Company shipped and successfully installed its second PPT861"! system to a world leading manufacturer of electronic connectors.  The PPT861"! system is an in-tray, 3D inspection system, equipped with PPT's patented SMI"! (Scanning Moiré Interferometry"!) SpeedScan 3D"! sensor. 

Machine vision system unit sales for the three-month period ended July 31, 2000 totaled a record 233 compared to 118 for the same period in fiscal 1999.  Unit sales for the first nine-months were a record 597 compared to 279 during the first nine-months of the previous year.  The increase in units shipped during the quarter and year-to-date is attributed to continued strong performance both domestically and internationally in the Company's core markets including electronics and automotive.  Since inception, PPT VISION has sold over 3,400 machine vision systems to over 280 customers.

'We are very pleased with our business progress in the third quarter,' stated Mr. Joseph C. Christenson, President of PPT VISION, Inc.  'We shipped our second PPT861 3D scanning system to our second customer and we received a multi-unit follow-on order from our first PPT861 customer.  In our core 2D machine vision business we realized record revenues and unit shipments.  We expect these positive trends in our business to continue into the fourth quarter,' concluded Mr. Christenson.

PPT VISION, Inc. designs, manufactures, markets, and integrates machine vision-based automated inspection systems for manufacturing applications such as electronic and mechanical assembly verification, verification of printed characters, packaging integrity, surface flaw detection, and gauging and measurement tasks. Machine vision-based inspection 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 vision systems are sold throughout the Americas, Europe and Asia to a broad range of industry categories including manufacturers of automotive, electronic and semiconductor components, consumer goods, pharmaceuticals, medical devices and plastics.  The Company's Common Stock trades on the Nasdaq National 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.

Conference Call

The Company has scheduled a conference call for 10:00 AM CST on Thursday, August 17th.  The conference call will be broadcast live over the Internet by StreetFusion.  To listen live go to www.streetfusion.com.

A digitized replay of the third quarter fiscal 2000 conference call will be available between 1:00 p.m. August 17th and midnight August 24th.   To access the replay please use the following numbers:  U.S.--800-475-6701; International--320-365-3844; Access Code-530803.

Forward Looking Statements

The discussion above contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements by their nature involve substantial risks and uncertainties as described by PPT VISION's periodic filings.  Actual results may differ materially depending on a variety of factors, including, but not limited to the following: changes in worldwide general economic conditions, cyclicality of capital spending by customers, PPT VISION's ability to keep pace with technological developments and evolving industry standards, worldwide competition, and PPT VISION's ability to protect its existing intellectual property from challenges from third parties and other factors.  Additional information with respect to the risks and uncertainties faced by PPT  VISION may be found in the section 'Business' under the caption 'Important  Factors Regarding Forward-Looking Statements' contained in its filing with the Securities and Exchange Commission on Form 10-K for the year ended October 31, 1999 and other reports filed with the Securities and Exchange Commission.

For more information contact:
Richard R. Peterson
Chief Financial Officer
www.pptvision.com