News Release

CyberOptics Acquires Imagenation Corporation

October 25, 2000 - Minneapolis, MN - CyberOptics Corporation (Nasdaq NMS: CYBE) and Imagenation Corporation (Portland, OR) announced today the acquisition of privately-held Imagenation, a leader in the design and manufacture of machine vision components and subsystems for industrial automation, semiconductor and medical applications.

"We are very excited about this acquisition," said George Fabel, President and CEO of Imagenation. "It reaffirms Imagenation's position as a leading supplier of vision components, and broadens the product offerings that we can deliver to our customers. Together, the combined CyberOptics/Imagenation organization will give our customers access to more technology - optical sensors and laser-based solutions from CyberOptics, coupled with Imagenation's vision-based frame grabbers and VisionCell solutions."

"This is an important acquisition for us," said Steven M. Quist, President and CEO of CyberOptics. "We gain Imagenation's experience in machine vision technology to complement our strength in optical and laser-based technologies. Imagenation also brings significant management and engineering expertise and we can benefit enormously from their skill in low cost design and manufacture of components."

CyberOptics will maintain Imagenation's offices in Portland, Oregon with George Fabel, his management team and employee roster remaining in place.

"CyberOptics and Imagenation also share a common culture of being market-driven, delivering exceptional customer service and developing well-targeted products for our customers," according to Quist. "CyberOptics pays particular attention to understanding the customer's environment where the product will be applied and seeks strong customer involvement in the R&D process to help assure the timely introduction of new products."

"The machine vision marketplace is a dynamic sector that is shaped by technology innovation and price competitiveness" said Fabel. "We are very pleased to be able to offer Imagenation's customers the benefits of being part of a larger, first-class organization like CyberOptics which strengthens our position in the industry and assures our customers of the long-term support they have come to expect from Imagenation."

About Imagenation

Imagenation Corporation designs and manufactures image capture and vision solutions for industrial automation applications. Imagenation's frame grabber product line includes monochrome, color and digital frame grabbers for ISA and PCI buses, and embedded form factors - PC/104, P/C104-Plus and CompactPCI. Imagenation's VisionCells are stand-alone, integrated vision systems that perform image capture, processing and analysis, all on a single board. VisionCells are available as add-on vision modules for manufacturing process equipment. Visit the website at www.imagenation.com.

About CyberOptics

CyberOptics Corporation (Nasdaq NMS: CYBE), a leader in optical technology, designs and manufactures a growing range of yield and through-put enhancement tools for the SMT electronic assembly equipment and semiconductor fabrication equipment markets. Visit the website at www.cyberoptics.com.

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