Braintech, Inc. Integrates Classification Technology Into NGI Technology Inc.'s Automated Inspection System.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 11, 1999-- BrainTech, Inc. announces the use of its automated defect classification technology, BrainTron(tm), as part of NGI Technology Inc.'s Continuous Line SCAN (CL SCAN) installation at Nucor Steel's Berkley Mill.

Under license, NGI Technology Inc. (NGI) has integrated the BrainTron classifier into its CL SCAN Automated Inspection System to optimize detection and classification of surface defects present in cold, rolled steel strip as is it is processed.

In addition to integrating the BrainTron classifier with NGI's image processing system, NGI is also participating in the beta testing of BrainTech's Odysee Development Studio. "The integration of BrainTech's processor with NGI's CL SCAN opens a new vertical market for the technology. This confirms our technology can be used for defect detection and classification in web inspection systems," comments Owen Jones, president of BrainTech, Inc. "We're continuing to develop a good relationship with NGI by building on the integration of our BrainTron Classifier. NGI has confirmed their participation in critical testing of BrainTech's Odysee Development Studio."

NGI Technology Inc. builds and supports industrial web inspection systems for the steel industry. One of the advantages the CL SCAN has over its competitors is the integration of BRAINTECH's BrainTron classifier to its automatic defect recognition system. The system classifies image objects based on a pre-defined defect library without the aid of inspection personnel. Implementation of a CL SCAN system allows manufacturers to significantly improve product quality, product yield and overall customer satisfaction.

BrainTron implements a patented technology based on a set of highly adaptive pattern matching algorithms. These algorithms represent a major improvement to automatic defect classification systems in terms of accuracy, flexibility and cost.

BrainTech specializes in the design, development and commercialization of advanced pattern recognition technologies and products. Founded in 1994, the company builds highly effective, adaptive pattern matching recognition systems based on its patented technologies. BrainTech shares trade on the OTC Bulletin Board under the symbol BNTI. For more information, visit http://www.bnti.com.

ON BEHALF OF THE BOARD

OWEN JONES

PRESIDENT

BRAINTECH, Odysee and BrainTron are registered trademarks of BRAINTECH INC.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by BRAINTECH INC.) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of BrainTech Inc. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state income tax laws, and market competition factors.