RVSI Engages William Blair & Company for Sale Of Semiconductor Equipment Group

NASHUA, NEW HAMPSHIRE -Robotic Vision Systems, Inc. (RVSI) (RVSI.OB) today said it has selected William Blair & Company LLC to assist RVSI in the prospective sale of the company's Semiconductor Equipment Group. RVSI's Semiconductor Equipment Group manufactures three-dimensional, machine-vision-based equipment used for end-of-line inspection of assembled integrated circuits; and two- and three-dimensional inspection equipment used to identify surface defects and perform bump height measurements on certain kinds of semiconductor wafers.  The Semiconductor Equipment Group is a market and technology leader in its product fields.

‘‘Our selection of William Blair is based on their demonstrated success in completing high-technology mergers and acquisitions transactions,’‘ said Pat V. Costa, Chairman and Chief Executive Officer of RVSI.  Throughout the process of negotiating this engagement, we were continually impressed by William Blair's level of contacts and innovative ideas about how to approach prospective buyers.

‘‘William Blair is also recognized as one of the premier investment banking organizations for the machine vision, bar code, and automatic identification industries,’‘ Mr. Costa said.  ‘‘Upon the sale of our Semiconductor Equipment Group, RVSI will focus exclusively on its Acuity CiMatrix machine vision and Data Matrix symbology business.  Our expectation is that the relationship we are forging with William Blair on the sale of the Semiconductor Equipment Group will continue beyond that assignment, and that their expertise in these fields will prove to be of substantive benefit to RVSI.’‘

Mr. Costa said RVSI would seek to ensure a smooth transition for customers in the sale of the Semiconductor Equipment Group.  ‘‘Our equipment is critical to several dozen of the world's leading semiconductor fabrication, test, assembly and packaging companies,’‘ Mr. Costa said.  ‘‘In selling this division, one of our principal goals is to execute a seamless transfer of products and service.  We will also seek a buyer that shares our technology vision and commitment to quality.

‘‘We believe this is an appropriate time for a sale of this business,’‘ Mr. Costa said.  ‘‘There is a strong, underlying demand for semiconductors that drives the current cycle in semiconductor capital equipment purchases.  We believe that this cycle is in its early stages.  Our Semiconductor Equipment Group is showing excellent growth and, in 2004, we are introducing multiple new products that enhance our leadership position.’‘

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About RVSI
Robotic Vision Systems, Inc. (RVSI) (RVSI.OB) has the most comprehensive line of machine vision systems available today. Headquartered in Nashua, New Hampshire, with offices worldwide, RVSI is the world leader in vision-based semiconductor inspection and Data Matrix-based unit-level traceability. 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 more than 100 patents in a broad range of technologies. For more information visit www.rvsi.com or call (800) 669-5234.

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 annual report on Form 10-K, and other filings with the Securities and Exchange Commission.

For further information contact:
Neal H. Sanders
(781) 302-2439