WIXOM, Mich., March 31 /PRNewswire-FirstCall/ -- Integral Vision, Inc. (OTC:INVI) (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 . ABOUT INTEGRAL VISION Integral Vision, Inc. (OTC:INVI) (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 DATASOURCE: Integral Vision, Inc. CONTACT: Charles J. Drake of Integral Vision, Inc., +1-248-668-9230, ; or Investors and Media, Laura Guerrant of Guerrant Associates, +1-808-882-1467, , for Integral Vision, Inc. Web site: http://www.iv-usa.com/

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