CTC Becomes VAR for Canesta's Electronic Perception Technology In Japan.

TOKYO & SAN JOSE, Calif. -- Sees Aggressive Adoption by Japan's Technology Innovators of the Low-Cost Technology That Allows Ordinary Devices to "See"

Canesta, Inc., the leader in electronic perception technology, today announced that CTC (Itochu Techno-Science Corporation) has agreed to become the first value-added reseller (VAR) in Japan for Canesta's breakthrough technology and products. As a leader in introducing cutting-edge technologies to Japan, CTC's representation in and of itself is a significant endorsement of this new technology category, which CTC believes will generate immediate and compelling interest. Canesta sees CTC as its "key" partner in the Japanese market.

"The ability to enable everyday devices to 'see,' particularly with a small, low-cost chip, is quite revolutionary," said Hideki Negishi, General Manager, CTC Industrial Engineering Sales Department. "Japan is the home of many companies that are leading the way in machine vision, robotics and other sensor-based applications, and we believe that Canesta's technology will immediately find its way into a large number of projects, both short and long term. I would not be surprised if we saw some significant application 'firsts' coming out of this market."

CTC will provide crucial software integration, customer support and application development services as well as product sales, particularly Canesta's new Electronic Perception Technology Development Platform, launched in Japan at CTC's headquarters in Tokyo. The Development Platform will enable researchers and engineers to explore and prototype applications that could benefit from real-time, 3-D machine vision. Canesta's Japan presence is additionally supported with its direct sales office in Tokyo.

Applications for the technology are numerous and are of particular interest to Japanese developers. For example, robotics researchers can anticipate breakthroughs in "eyes" for numerous types of autonomous robots. Applications in manufacturing, warehousing or security will be able to locate and discriminate objects by size and shape. In public safety, automotive sensors could detect nearby pedestrians to avoid personal injuries. And automatic doors could be improved such that they only opened when individuals approached them directly, rather than for every passerby. "Japanese companies are among the leading providers in such novel and important applications," said Hideki Negishi, General Manager, CTC Industrial Engineering Sales Department. "Once Canesta's technology is in their hands, they will be very fruitful in their development activities."

"We are very pleased at the momentum that our technology is gaining around the world," said Jim Spare, Canesta's vice president of marketing. "And we are honored to be counted among the distinguished list of technology leaders that CTC has introduced to Japan."

About CTC (Itochu Techno-Science Corporation)

Established in 1972, Itochu Techno-Science Corporation (CTC), provides advanced IT solutions to enhance enterprise network systems. CTC supports market segments that include telecommunications, broadcasting, finance, distribution, manufacturing, education/government, medicine, pharmaceutical/chemicals and textiles/apparel.

CTC has formed partnerships with more than 200 leading IT companies from nine countries, ranging from global multinational IT companies to those with highly focused venture businesses. CTC employs over 3,300 people nationwide and provides one-stop 7x24/365 support services in roughly 100 service centers.

About Canesta

Canesta is the inventor of a revolutionary, low-cost electronic perception technology that enables machines and ordinary electronic devices to perceive and react to nearby objects or individuals in real time.

When sight-enabled with Canesta's unique electronic perception chips and software, consumer, automotive, industrial, military and medical products can gain functionality and ease of use not possible in an era when such devices were blind.

Canesta believes future applications of electronic perception technology are virtually as broad as the imagination. They may include intelligent automobile airbag systems that can sense the size and position of an occupant to control deployment and avoid injury, a low-false-alarm security system that could detect the difference between an intruder and normal activity, such as a pet moving or child visiting the bathroom at night, or robotic tools that can successfully operate in a dynamic, rather than static environment.

Canesta was founded in April 1999, and is located in San Jose, Calif. The company has filed in excess of forty patents, 12 of which have been granted so far. Investment to date exceeds $36 million, from Apax Partners, Carlyle Venture Partners, Intel Capital, JP Morgan Partners, Korea Global IT Fund (KGIF), TechFund Capital, Thales Corporate Ventures and Venrock Associates.

Editors' Note: All trademarks and registered trademarks are those of their respective companies.

Additional background information is available at www.roeder-johnson.com.