Cimetrix Announces First Quarter Earnings.

Business Editors/High-Tech Writers

SALT LAKE CITY--(BUSINESS WIRE)--May 16, 2000

Cimetrix Inc. (OTC: CMXX), of Salt Lake City, has announced financial results for the first quarter 2000.

On December 20, 1999, Cimetrix announced that its management would explain the difference between its actual financial results each quarter and projected results for that quarter. The company's management also promised to provide its updated forecast for the remaining quarters of the year.

Net sales for the first quarter were $757,000, which is $268,000 less than the company projected last December. The company had a net loss of $461,000, which is $211,000 more than the company projected.

The reasons for the differences between the company's projections and the actual results are as follows: Cimetrix acquired technology and personnel from both SDI and Object Factory in December of 1999. The company expected to incur development and integration costs as new products were prepared for introduction in the first quarter and as a result, forecast a $250,000 loss for the first quarter.

Unfortunately, the company did not have the opportunity to thoroughly examine the acquired technology until after closing for obvious reasons. (Both SDI and Object Factory were competitors of Cimetrix and had to protect their intellectual property until closing in the event that the respective transactions failed to close.)

Two of the acquired products required more time and resources to develop than anticipated and one of the products required more time but fewer resources to integrate than anticipated. These factors resulted in small schedule delays, which cost the company sales in the first quarter.

Cimetrix management worked aggressively to resolve these issues and the latest financial forecast reflects the company's confidence that it will meet or exceed the remaining quarterly targets.

Michael Feaster, vice president of software development, stated that, "I am pleased that we completed the development and integration for the products acquired from Object Factory and SDI, although I am disappointed that it took longer than we expected. However, at this point, we have a good understanding of the technology we acquired and our future product releases should be on schedule."

In addition, as a result of researching all possible solutions to one of the product schedule issues, Cimetrix formed a strategic partnership with a major automation supplier, which will be formally announced in the third quarter. The company is extremely excited about the new strategic partnership, which should have a significant impact on next year's financial results.

The company forecasts the following results for the remainder of fiscal year 2000:

Revenue (000)       Q1      Q2      Q3      Q4      Total

Budget            $1,025  $1,575  $2,000  $2,900   $7,500
Actual              $757
Forecast                  $1,575  $2,000  $2,900   $7,232


Net Income (000)    Q1      Q2      Q3      Q4      Total

Budget             $(250)   $273    $800  $1,677   $2,500
Actual             $(461)
Forecast                    $273    $800  $1,677   $2,289

Bob Reback, executive vice president of sales, said, "The outlook for the second quarter looks very strong. New products plus several new customers should allow us to meet or exceed the sales and net income targets."

The company's president, Paul Bilzerian, stated, "Cimetrix is finally beginning to achieve the long term goals that we established when I first came to the company. The financial results for the second half of this year and next year should make that clear."

Cimetrix is a publicly traded software products company (CMXX) that markets and sells PC-based open architecture machine control and equipment communications software products to the factory automation industry.

Cimetrix is building alliances with industry leaders in the fields of semiconductor, SMT (Surface Mount Technology), electronics assembly, robotics, packaging, machine tools, and custom mechanisms. To find out more about Cimetrix and its open architecture products, call 801/256-6500 or find us on the Internet at www.cimetrix.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results.

Numerous factors may affect the company's future results, some of which include the following:

-- fluctuations in capital spending domestically and

internationally in one or more industries in which we sell our

products;

-- changes in product mix and pricing by us, our suppliers or our

competitors;

-- new product introductions by us or by our competitors;

-- our failure to anticipate the changing product requirements of

our customers;

-- a lack of market acceptance of our products or a shift in

demand for our products; and

-- extraordinary events such as litigation or acquisitions.

The company's operating results may also be affected by general economic and other conditions affecting the timing of customer orders and capital spending as well as the mix of product sales.

In the event that in some future fiscal quarter our net revenues or operating results fall below the expectations of public market analysts and investors, the price of our common stock may fall. We cannot assure you that we will be able to increase or sustain our profitability on a quarterly or an annual basis in the future.