Braintech, Inc. Awarded Subcontract from BAE Systems for U.S. Navy's Automated Weapons Assembly Project.

MCLEAN, Va. -- Braintech, Inc. (OTCBB: BRHI), through its wholly-owned subsidiary Braintech Government & Defense, Inc., announced today that it has received a subcontract from BAE Systems on an U.S. Government and Defense contract.

Braintech is developing automated assembly solutions based on its industry-leading Vision Guided Robotics (VGR) technology in Phase II of the Automated Weapons Assembly (AWA) project for the Office of Naval Research (ONR). The project is headed by BAE Systems and includes participation with PaR Systems and the Robotics Institute at Carnegie Mellon University. The four companies teamed to earn the AWA contract over two other groups in Phase I of the project.

Adam Marsh, BAE Systems' Program Manager, said, "With its unique vision guidance software technology and dedicated technical team, Braintech is developing a critical system component that was key to proving to the customer that weapon assembly could be automated. This will reduce the number of sailors required, reduce the risk of injuries and provide a reliable, repeatable process for the Navy. BAE Systems is very pleased to have Braintech on the AWA team and looks forward to a highly successful project."

Braintech, Inc.'s Chief Executive Officer Rick Weidinger said, "We're very happy to be supporting BAE Systems and the U.S. Navy. I come from a military family and this is the core focus of our Company going forward. We're successfully adapting Braintech's proprietary technology to provide vision guidance to specialized weapon assembly equipment. Braintech's vision software will be enhanced to facilitate unmanned assembly for a variety of weapons on a wide range of mobile and fixed platforms. The project requires robots and sailors to operate in very close proximity to each other, and Braintech's vision software will help the system work safely and effectively."

About Braintech Inc.:

Braintech's (OTC BB: BRHI) software products offer robust, scalable and transferable Vision Guided Robotic (VGR) solutions used for industrial and government & defense service applications. The company's software is being utilized every day with over 170 installations worldwide. Braintech's customers include Toyota, Johnson & Johnson, Boeing, Harley-Davidson, Chrysler, Delphi, Honda, GM, Ford, Nissan, BAE Systems, Makino and ABB. The company has offices in McLean, Virginia; Pontiac, Michigan; and Vancouver, British Columbia, Canada.

For more information, visit www.braintech.com.

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