Cognex Sells Its In-Vehicle Vision Business to Takata Corporation Group

Wed Jul 2, 2008 4:00pm EDT

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NATICK, Mass.--(Business Wire)--
Cognex Corporation (NASDAQ: CGNX) announced today that it has sold
its lane departure warning business (LDW) to TK Holdings Inc. (Takata
Corporation Group), a leading supplier of automotive safety systems
based in Tokyo, Japan. Under the terms of the deal, Takata has
acquired all of the assets of the LDW business for $3.15 million in
cash. As a result of this sale, Cognex will record a pre-tax charge of
approximately $3 million in the second quarter of 2008.

   "Cognex entered the in-vehicle vision business in 2006 with the
acquisition of AssistWare Technologies, a small company that had
developed a vision system that could provide a warning to drivers when
their vehicle was about to inadvertently cross a lane. And, over the
past two years, we have invested additional funds to commercialize
AssistWare's LDW product and to establish a business developing and
selling machine vision products for driver assistance," said Dr.
Robert J. Shillman, Chairman and CEO of Cognex. "Although we continue
to believe that in-vehicle applications of machine vision will one day
be a very large opportunity, it has become clear to us that delivering
a complete LDW product to the automotive industry is not a profitable
way for us to participate in that market. There are two reasons for
that. First, car and truck manufacturers ('OEMs') want to work
exclusively with their existing Tier One suppliers, who have the
knowledge and experience needed to meet the extremely rigorous testing
and quality standards required in the automotive industry. Next,
although Tier One suppliers have expressed interest in Cognex's vision
technology, they all required access to, and control of, our
proprietary software code...which we just can't agree to."

   Dr. Shillman continued, "Cognex invested in a business that
appeared to have a very large market potential. Unfortunately, as we
got more experience with that business, it became clear that it did
not fit Cognex's profitable business model. We recognize that when
investing outside of our core businesses that "you win some, and you
lose some," and this was one of those times when our investment did
not pay off. But, despite this loss, we will continue to search for,
and invest in, promising new market opportunities."

   About Cognex

   Cognex Corporation designs, develops, manufactures and markets
machine vision systems and sensors, or devices that can "see." Cognex
vision products are used in factories around the world to automate the
manufacture of a wide range of items and to assure their quality.
Cognex is the world's leader in the machine vision industry, having
shipped more than 400,000 machine vision systems, representing over $2
billion in cumulative revenue, since the company's founding in 1981.
In addition to its corporate headquarters in Natick, Massachusetts,
Cognex also has regional offices and distributors located throughout
North America, Japan, Europe, Asia and Latin America. Visit Cognex
on-line at http://www.cognex.com.

Cognex Corporation
Robin Pratt, 858-350-5065
Sr. Manager, Corporate Communications
robin.pratt@cognex.com

Copyright Business Wire 2008