China Steel Corporation Selects Cognex for Surface Inspection.

Business/Technology Editors

NATICK, Mass.--(BUSINESS WIRE)--May 10, 2001

Cognex Corporation (NASDAQ:CGNX), the world's leading supplier of machine vision systems, announced today that China Steel Corporation, a Taiwan-based manufacturer of integrated steel products, has selected Cognex surface inspection technology to perform automated quality inspection on its steel strip manufacturing line.

Cognex's surface inspection systems use high performance camera technology to automatically detect, visualize, and classify surface flaws on a wide variety of high value-added materials. China Steel will use the Cognex system to detect defects such as inclusions, starve marks, scratches, lamination, and dents in strip steel as it undergoes a continuous annealing process.

"Cognex's surface inspection systems can inspect defects of less than a millimeter in the most challenging applications--galvanized steel, copper foil, and high-tech synthetics--at full production speeds," said Markku Jaaskelainen, General Manager of Cognex's Surface Inspection Systems Division. "This allows manufacturers to improve product quality and reduce scrap, resulting in increased output."

Established in 1971, China Steel Corporation is currently the sole integrated steel producer in Taiwan. Its annual capacity, measured in terms of crude steel, stands at over 8 million tons, with roughly 70% of its production for domestic consumption and 30% for export. China Steel has concurrent interests in foreign trade, transportation, engineering and construction, finance, service, and industries involving emerging technologies.

Cognex Corporation designs, develops, manufactures, and markets machine vision systems, or computers that can "see." Cognex is the world's leader in the machine vision industry, having shipped more than 150,000 machine vision systems, representing over $1 billion in cumulative revenue, since the company's founding in 1981. Cognex's Modular Vision Systems Division, headquartered in Natick, Massachusetts, specializes in machine vision systems which are used for automating the manufacture of a wide range of discrete items and for assuring their quality. Cognex's Surface Inspection Systems Division, headquartered in Alameda, California, specializes in machine vision systems, also known as web inspection systems, which are used for inspecting the surfaces of products manufactured in a continuous fashion, such as metals, paper, and plastics. In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices located throughout North America, Japan, Europe, and Southeast Asia. Visit Cognex on-line at http://www.cognex.com.