Robotic Vision Systems Reports Third Quarter Results of FY2002

Canton, Massachusetts -- Robotic Vision Systems, Inc. (RVSI) (Nasdaq: ROBV) today reported results for the third quarter ended June 30, 2002 for fiscal year 2002. Revenues were $15,348,000 and, excluding unusual items, the company had a net loss of $8,767,000, or $0.16 per share. Inclusive of unusual items such as severance, the company reported a net loss of $9,992,000 or $0.18 per share for the three months ended June 30, 2002, compared to a net loss of $14,623,000, or $0.41 per share, for the three months ended June 30, 2001.

These results compare to revenues of $14,043,000 and a net loss, exclusive of unusual items, of $8,507,000 or $0.19 per share, in the quarter ended March 31, 2002.  The increased loss in the quarter ended June 30, 2002, was due principally to lower gross margin caused by a shift in mix between the company's two operating divisions.

'Our Semiconductor Equipment Group's recovery continued in the quarter, with a 43.9% gain in revenues, to $10.5 million, from the second quarter's $7.3 million, while still posting a positive book-to-bill ratio,' said Pat V. Costa, Chairman and CEO of RVSI. 'The $11.8 million of bookings we recorded in the third quarter was our highest booking for this group in over a year. We saw strength both in lead scanning and in bumped wafer inspection.  The latter category saw bookings of four systems in the quarter as demand for this technology expands.

'However, our Acuity CiMatrix business fell short of expectations in the quarter,' Mr. Costa said. 'While revenues were $4.9 million in the quarter, bookings were a disappointing $3.8 million.  In looking for reasons for the decline, we know we did not lose any meaningful business to competitors, and we did not see programs being cancelled. Rather, what we experienced was the result of a collective caution on the part of purchasing managers to commit to new programs, regardless of how swift the payback and solid the technology.  There is a hesitancy out there to spend, and it caught up to us this quarter.'

Prospects for the fourth quarter
'While many of our peer companies in the semiconductor capital equipment industry are cautious about the balance of 2002, we believe that we can continue to see order and revenue growth,' Mr. Costa said. The company's goals for the fourth quarter are to further increase sales and shrink the company's operating loss. 'We have continued to reduce fixed expense and lower our break-even costs,' he said.  'However, we still expect to be below operational break-even in the fourth quarter.

'RVSI has recently introduced a group of exceptional products that further extends our technological leadership,' he said. 'We have the highest throughput and lowest cost of ownership for our semiconductor inspection and bumped wafer inspection products.  Our machine vision products offer the industry's greatest ease of use and programmability, and our Data Matrix readers are without peer.  Our product portfolio has never been stronger.'

About RVSI
Robotic Vision Systems, Inc. (RVSI) (Nasdaq: ROBV) has the most comprehensive line of machine vision systems available today. Headquartered in Canton, Massachusetts, with offices worldwide, RVSI is the world leader in vision-based semiconductor inspection and media transfer equipment. 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.

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 most recent registration statement, annual report on Form 10-K and 10K/A, and other filings with the Securities and Exchange Commission.

Contact:
Neal H. Sanders
RVSI
5 Shawmut Road
Canton, MA  02021
Tel: 781-302-2439, x2417
Fax: 781-302-2440