Integral Vision, Inc. Announces Fourth Quarter and Year End 2007 Results

WIXOM, Mich., March 31 /PRNewswire-FirstCall/ -- Integral Vision, Inc.
(OTC Bulletin Board: INVI), a leading global supplier of automated display
inspection technology, today announced financial results for its fourth
quarter and fiscal year ending December 31, 2007.
Business Highlights
-- Integral Vision is seeing strong adoption of its automated inspection
systems with a significant customer base, which includes Samsung,
Liquavista B.V., Plastic Logic, and a major MEMS display manufacturer.
In addition, a leading computer manufacturer recently specified the
Company's SharpEye(TM) system to be used by all of its suppliers of
Liquid Crystal Display (LCD) displays.
-- Integral Vision is gaining considerable traction in Emerging
Technologies: (i) MEMS Technologies (Micro Electro-Mechanical
Systems), (ii) e-paper, (iii) Roll-to-Roll production, (iv) LED
Backlight for LCDs and, (v) Organic Light Emitting Diodes or OLED.
-- In 2007, the Company announced the inauguration of the LumenEye(TM)
photometric light measurement system. LumenEye represents the first of
a series of products designed for Flat Panel Display (FPD)
manufacturers to inspect their FPD products for inherent Image
Retention (Image Sticking) defects.
-- The Company's SharpEye inspection system continued to gain traction in
2007 with strong customer adoption. The SharpEye product provides
analysis of functional and cosmetic defects in the display to assure
quality in the manufacturing process. Integral Vision received orders
for its SharpEye product to be used for the production inspection of
MEMS displays.
-- Integral Vision announced the acceptance of a SharpEye system in 2007
from a multi-national technology company for engineering an inspection
system to be used on Roll-to-Roll equipment. This equipment can be
used for inspection of a variety of display materials produced on a
web.

"We believe that 2008 will be a breakout year for us," said Charles J.
Drake, chairman and CEO of Integral Vision, Inc. "We are seeing strong
customer adoption of our technology; and are currently working with a number
of large customers who are using our technologies to evaluate their
microdisplay production or are evaluating our technology for the inspection of
LCD displays and components. Specifically, -- Three of our customers have
made commitments to use significant
quantities of our inspection equipment.
-- Two of these customers are involved in new display technologies and are
committed to major production.
-- And one of these customers is a leading computer manufacturer that has
recently specified our SharpEye system to be used by virtually all of
its suppliers of LCD displays, which clearly translates into a
substantial opportunity for Integral Vision."

Drake continued, "With the bookings already received in the first quarter
of 2008, we are assured of a revenue and gross margin improvement over that of
last year. This year alone we have two different emerging display
technologies that are in the consumer market and gaining substantial traction,
along with what we see as significant sales for the mainstream LCD market."
"Automated inspection has become a necessity for manufacturers who need to
continually improve production efficiency to meet the increasing demand for
high quality products," concluded Drake. "Our automatic inspection systems
can inspect parts at a lower cycle time and with greater repeatability than is
possible with human inspectors. Our vision and strategy is beginning to pay
off, and we believe that we are optimally positioned to capitalize on the
evolving quality requirements that are being established by global display
manufacturers."
Fourth Quarter 2007 Financial Results
Revenue for the fourth quarter was $590,000 compared to $75,000 in the
fourth quarter of 2006 resulting in a loss for the quarter of $700,000
compared to $754,000 for the fourth quarter of 2006.
2007 Year-End Financial Results
Total revenue for the year increased to $1,151,000 from $835,000 for
fiscal 2006. The company lost $3.04 million, or $0.10 per share, in 2007
compared with a loss of $2.97 million, or $0.10 per share, in 2006.
2007 gross margin percentage of 22 percent increased from 11 percent of
sales in 2006. "We expect substantial improvement in gross margins in 2008,"
Drake said. "With gains in manufacturing efficiencies and capacity
utilization, we anticipate that we would exit 2008 with gross margins in the
range of 45 - 50 percent."
Commenting on the balance sheet, Drake noted, "While cash on the balance
sheet as of December 31, 2007 was $11,000, the Company has received an
additional $500,000 in working capital year-to-date, and we anticipate
receiving more working capital from certain of our investors going forward."
Drake concluded, "The value proposition of our automated inspection
systems is becoming increasingly evident, as top-tier manufacturers adopt our
technology. Our vision has always been clear -- and remains so -- and we are
gratified to see our technology meeting the precise and technical demands of
the display market." "Three significant opportunities exist in 2008.
-- A MEMS customer whose planned expansion has the potential alone to make
the Company profitable for the next several years. This company will
spend significantly on equipment for this expansion.
-- A major computer-manufacturing customer that is making the use of our
system mandatory for all of their suppliers.
-- The emergence of e-paper and our ability to test these products much
faster and more accurately than manual inspection."

"In addition, we also expect contribution from inspection of OLED and web
material in 2008. Our confidence remains strong, and we anticipate a much
improved year in 2008."
TO ACCESS THE LIVE CONFERENCE CALL
Integral Vision will host a live conference call at 4:30 p.m. (ET) on
Monday, March 31, 2008. To access the conference call, please call
303-262-2139 or 800-218-0530 approximately 5 to 10 minutes prior to the
scheduled start time.
TO ACCESS A REPLAY OF THE CONFERENCE CALL
If you are unable to listen to the live conference call, it will be
archived for replay. Shortly after the call, a telephonic replay will be
available through Wednesday, April 2, 2008, by dialing 303-590-3000 or
800-405-2236. The confirmation code 11109600 is required for the telephonic
replay.
COMPANY'S INVESTOR E-MAIL LIST
To be added to Integral Visions investor email list, please contact Laura
Guerrant of Guerrant Associates atlguerrant@guerrantir.com.
ABOUT INTEGRAL VISION
Integral Vision, Inc. (OTC Bulletin Board: INVI), an ISO 9001 registered
firm, offers display inspection technology that provides analysis of
functional and cosmetic defects in the display to assure quality in the
manufacturing process as well as verification of the final product. Integral
Vision has been inspecting displays since 1992 and is an industry leader
committed to providing automated solutions to the quality issues Microdisplay,
OLED and LCD manufacturers face in today's competitive marketplace. More
information can be found at Website: http://www.iv-usa.com.
"SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements made pursuant
to the safe harbor provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934. Such statements are based on
management's current expectations and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Such factors and uncertainties
include, but are not limited to: competitive conditions in the Company's
markets and the effect of competitive products and pricing; technological
development by the Company, its customers and its competition; the Company's
available cash and access to debt and equity financing; and general economic
conditions and conditions in the specific industries in which the company has
significant customers. As a result, the Company's results may fluctuate.
Additional information concerning risk factors that could cause actual results
to differ materially from those projected in the forward-looking statements
are contained in the Company's filings with the Securities and Exchange
Commission. These forward-looking statements represent the Company's best
estimates as of the date of this press release. The Company assumes no
obligation to update such estimates except as required by the rules and
regulations of the Securities and Exchange Commission.
FINANCIAL INFORMATION
The summary financial information contained in this press release,
including the following information in tabular form, should be read in
conjunction with the more detailed information contained in the Company's
Annual Report on Form 10-KSB filed with the Securities and Exchange Commission
on March 31, 2008.

-Tables follow-

Balance Sheet
Integral Vision, Inc.
(in thousands)
Assets
Current assets
Cash $11
Accounts receivable 75
Inventories 265
Other current assets 97
Total current assets 448

Property and equipment
Building improvements 4
Production and engineering equipment 234
Furniture and fixtures 80
Computer equipment 190
Marketing/demonstration equipment 139
647
Less accumulated depreciation 431
Net property and equipment 216

Other assets - net of accumulated
amortization of $1,483,000 34
34
$698

Liabilities and Stockholders' Deficit
Current liabilities
Notes payable $3,342
Accounts payable 75
Accrued compensation and related costs 298
Accrued interest 196
Accrued product warranty 82
Other accrued liabilities 40
Total current liabilities 4,033

Long-term debt -
Total liabilities 4,033

Stockholders' deficit
Preferred stock, 400,000 shares
authorized; none issued -
Common stock, without par value,
stated value $.20 per share;
41,000,000 shares authorized;
29,491,409 shares issued and outstanding 5,913
Additional paid-in capital 39,407
Accumulated deficit (48,655)
Total stockholders' deficit (3,335)
$698

Statements of Operations
Integral Vision, Inc.

Three Months Ended December 31,
2007 2006
(Unaudited)
Revenues: (In thousands, except per share data)
Net product sales $531 $75
Net revenue from product development
agreements 59 -
Total net revenues 590 75
Costs of sales:
Costs of sales for products 381 58
Cost of sales for product development
agreements 55 34
Depreciation and amortization 4 6
Total costs of sales 440 98
Gross margin (loss) 150 (23)

Other costs and expenses:
Marketing 150 153
General and administrative - net 327 294
Engineering and development - net 305 303
Total other costs and expenses 782 750
Operating loss (632) (773)
Other income (8) 34
Interest income - 1
Interest expense (61) (9)
Foreign currency translation (loss) 1 (7)
Net loss $(700) $(754)

Basic and diluted loss per share:
Net loss $(0.02) $(0.03)

Weighted average number of shares of
common stock and common stock
equivalents, where applicable 29,534 29,491

Statements of Operations
Integral Vision, Inc.

Year Ended December 31,
2007 2006
Revenues: (In thousands, except per share data)
Net product sales $1,059 $663
Net revenue from product development
agreements 92 172
Total net revenues 1,151 835
Costs of sales:
Costs of sales for products 781 488
Cost of sales for product development
agreements 97 199
Depreciation and amortization 17 54
Total costs of sales 895 741
Gross margin 256 94

Other costs and expenses:
Marketing 608 653
General and administrative - net 1,327 1,250
Engineering and development - net 1,146 1,214
Total other costs and expenses 3,081 3,117
Operating loss (2,825) (3,023)
Other income 13 46
Interest income - 42
Interest expense (230) (32)
Foreign currency translation (loss) 1 (7)
Loss from operations before income taxes (3,041) (2,974)
Income taxes - -
Net loss $(3,041) $(2,974)

Basic and diluted loss per share:
Net loss $(0.10) $(0.10)

Weighted average number of shares
outstanding of common stock and
common stock equivalents, where applicable 29,534 29,491

SOURCE Integral Vision, Inc.

Charles J. Drake of Integral Vision, Inc., +1-248-668-9230, cdrake@iv-usa.com;
or Investors and Media, Laura Guerrant of Guerrant Associates,
+1-808-882-1467, lguerrant@guerrantir.com, for Integral Vision, Inc.