Adept Technology Reports Preliminary First Quarter 2000 Results.

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 4, 1999--

Adept Technology, Inc. (Nasdaq:ADTK), a leading designer and manufacturer of intelligent automation products, said today that component supply issues, seasonal softness in orders, a longer than anticipated sales cycle for software offerings and overall adverse changes in product sales mix will impact its financial performance for the first quarter of fiscal 2000.

The company said that revenues for the first quarter ended September 30, 1999 will range from $19 million to $21 million and that it expects to report a net loss of $.19 to $.21 per share before previously announced one-time charges related to the company's acquisition of BYE/Oasis in the first quarter of fiscal 2000.

Adept acquired BYE/Oasis in July 1999 and is accounting for the transaction as a pooling of interests. The company expects to report full first quarter results in late October.

Brian R. Carlisle, chairman and chief executive officer of Adept, stated, "The summer quarter is traditionally the slowest quarter for new orders for both Adept and SILMA. This quarter, when bookings did start to come in September, the product mix was significantly different from our forecast, resulting in some shipment delays until next quarter. In addition, as we indicated in our fourth quarter earnings release, we have been experiencing delivery problems from one of our suppliers. We are now working with a new supplier who understandably has taken some time to ramp up to our production needs." In addition, our product mix shifted significantly in the latter part of the quarter, particularly with respect to lower software sales, which resulted in lower revenues and gross margins."

"However, demand from our semiconductor customers remains strong and interest in the automotive sector remains very positive. Also, the integration of BYE/Oasis is progressing well and revenues for BYE/Oasis were ahead of plan. In addition, we generated a high level of leads at the recent Assembly Technology Exposition ("ATE") and European Motek Show. We also received high interest in our Production Pilot software product which we previewed, both at the booth and at a seminar attended by 70 manufacturers."

Carlisle said that the company's operating expenses have remained essentially flat when taking into account the acquisition of BYE/Oasis. "We are closely

monitoring costs, but do not at this point anticipate implementing major cost reduction programs in that we see these problems as short term issues and we want to be positioned to capitalize on what we believe is a solid long-term market opportunity for the company."

The foregoing information regarding anticipated results is preliminary. It should be considered forward-looking and actual results may differ materially. Actual results could differ due to any accounting adjustments made during the closing of the books for the quarter.

Founded in 1983, Adept Technology, Inc., designs, manufactures and markets intelligent automation software and hardware products for manufacturers in the electronics, semiconductor, telecommunications, appliances, pharmaceuticals, food production and automotive components industries. The company is the largest manufacturer of industrial robots in the U.S. with more than 15,000 systems installed worldwide. The company provides direct sales, service and training in the U.S., Europe, South Korea, Singapore and with a partner in Japan, and offers turnkey flexible automation systems through specialized automation engineering companies throughout the world. Adept Technology product and service information is available at World Wide Web site http://www.adept.com.

This press release contains certain forward-looking statements that involve a number of risks and uncertainties. The following important factors could cause the company's actual results to differ materially from those expressed in any of the above forward-looking statements: the potential delays associated with the development and introduction of new products or software releases; the potential fluctuations in the company's quarterly and annual results of operations; the cyclicality of capital spending of the company's customers; the company's dependence on the continued growth of the intelligent automation market; the risks associated with sole or single sources of supply and lengthy procurement lead times; the company's highly competitive industry; rapid technological change within the company's industry; the lengthy sales cycles for the company's products; the risks associated with reliance on systems integrators; the risks associated with international sales and purchases; the risks associated with potential acquisitions, including integration risks associated with our recent acquisition of BYE/Oasis, and the need to manage growth; the risks associated with new product development and the need to manage product transitions; the company's dependence on retention and attraction of key employees; the risks associated with product defects; the company's dependence on third-party relationships; the uncertainty of patent and proprietary technology protection and third party intellectual property claims; change in, or failure or inability to comply with government regulations; general economic and business conditions; the failure of any new products to be accepted in the marketplace; any decreased investment in robotics generally, and in the company's intelligent automation products particularly, as a result of general or specific economic conditions or conditions affecting any of the company's primary markets; or decreased acceptance of the company's current products in the marketplace.

For a further discussion of risk factors relating to the company's business, see the company's Form 10-K for the fiscal year ended June 30, 1999, including the discussion in Management's Discussion and Analysis of Financial Condition and Results of Operations.