ADVISORY/IPS Announces Repeat Order From Top 5 CRT Glass Manufacturer.

Business Editors

MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 3, 2000

Image Processing Systems, Inc.(TSE:IPV.)

R&D Investment Pays Off with Orders for New IPS Product Line

Image Processing Systems Inc. (TSE:IPV.), a leading developer and global supplier of e-Vision (electronic vision) technology, today announced a repeat order worth over $725,000 for its new AGI 9910 CRT Glass Inspection System.

This latest order, from one of the world's largest cathode ray tube (CRT) glass manufacturers, will be installed in their manufacturing facility in North America. To date, IPS has received either "seed" or repeat orders from three of the top five CRT glass manufacturers, representing approximately 65 per cent of the world's supply.

"The benefits they derived from IPS's AGI 9900 CRT inspection systems prompted this customer to order the AGI 9910 system, even though it is still under development and scheduled for delivery next year," comments Ken Wawrew, IPS President and CEO. "This order serves as a sound endorsement by a leading CRT glass manufacturer of our Automated Glass Inspection (AGI) technology."

"CRT glass inspection represents a new market segment for IPS within the display industry, a segment in which there is limited competition and where very few manufactures have attempted to undertake the development of their own vision technology," comments Dave Thomas, IPS Vice President, Sales & Marketing. "To remain competitive and meet the growing demands of the display industry, manufacturers face the challenges of having to expand capacity, improve product quality, increase yields, decrease costs and at the same time develop new products, including larger and wider screens. The CRT glass market, which totalled US$3.8 billion in 1999 and is expected to reach US$4.3 billion by 2004, continues to be driven by the increasing demand for computer monitors and TV sets."

The new fully automated AGI 9910 CRT Glass Inspection System increases production line yields through online inspection of CRT glass faceplates. Using a unique combination of patented illumination and optics technology, high-resolution CCD cameras and proprietary image processing and analysis software, this non-contact system detects, measures and classifies defects such as scratches, bubbles, chips, scuffs and stones.

As previously announced, a conference call will be held on Wednesday, August 9th at 12:00 p.m. EST with Ken Wawrew and George Tepelenas, Chief Financial Officer, to discuss the most recent quarterly results and the current status of the new CRT and Autoglass product lines. Local callers should dial 416-641-6450 and long distance callers should dial 877-871-4065. No password is required. The conference call and accompanying presentation will also be broadcast live via www.q1234.com. The audio replay will be available to listeners from 2:00 p.m. EST on August 9 until 11:59 p.m. EST on August 11, by calling 416-626-4100 (registration number 15948277).

About Image Processing Systems Inc.

Making computers see, IPS is a leading developer of e-Vision (electronic vision) technology providing the eyes of advanced manufacturing worldwide. The Company's patented Automated Display Inspection and Alignment (ADI) systems are used by most of the world's largest display manufacturers. IPS also provides advanced glass inspection solutions for the electronics and automotive industries, developed in close co-operation with key customers. IPS, an ISO 9001 and IQNET certified company, is listed on the Toronto Stock Exchange under the symbol IPV. Headquartered in Markham, Ontario, IPS has offices and representatives in Brazil, Canada, China, India, Japan, Korea, The Netherlands, Poland, Taiwan, the United Kingdom and the United States. For more information on IPS, please visit our Web site at www.ipsautomation.com.

To the extent that any of the statements discussed in this press release are forward-looking, such statements are subject to certain risks and uncertainties which could cause the actual results to differ materially from those projected, including, but not limited to, the timely development and acceptance of new products, delays in factory testing and acceptance, industry trends, technology or pricing competition and other risks. As a result, the Company's operating results may fluctuate, especially when measured on a quarterly basis. The Company assumes no obligation to update the information in this press release.