CyberOptics Announces Additional Cost Reduction Measures.

Business Editors & Technology Writers

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 9, 2002

CyberOptics Corporation (Nasdaq NMS:CYBE) today announced a new round of cost reduction measures, including an approximate 10% reduction of its worldwide workforce.

Two previous workforce reductions were instituted in 2001, totaling approximately 20% of the Company's worldwide employment.

Other cost reduction initiatives now taking effect include:

-- Consolidating all semiconductor product manufacturing in the Company's
Portland, Oregon, facility. The group's sales and R&D functions will remain at
the Redwood City, California, facility.

-- Maintaining R&D investment at current levels, but slowing the development of
certain new products for specific customers in a manner consistent with the
order rates and new product requirements of these customers.

The Company said it also is maintaining various cost saving measures implemented in 2001, including a 5% across-the-board salary reduction, a 10% pay reduction for executives, and significantly tightened control over discretionary spending.

Steven M. Quist, president and chief executive officer, commented: "These cost reduction measures are consistent with what we have been saying for some time about the ongoing weakness in our electronics markets and our resulting lack of visibility into future order rates. Workforce reductions have been particularly difficult to make, but this latest round of initiatives places our operating overhead into better balance with currently anticipated business volumes. Backed by our substantial cash reserves, which exceeded $30 million at the end of last year's third quarter, we are in the fortunate position of being able to maintain product development expenditures at high levels. For this reason, we are very confident that CyberOptics' competitive capabilities will be even stronger once our markets start to gradually strengthen."

CyberOptics Corporation, a recognized worldwide leader in optical technology, designs and manufactures a growing range of yield and through-put enhancement tools for the SMT electronic assembly equipment and semiconductor fabrication equipment markets.

Statements regarding the Company's anticipated performance are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions in the global SMT and semiconductor capital equipment industries, the level of orders from our OEM customers, the timing and commercial success of new product introductions, the effect of world events on our sales, the majority of which are from foreign customers, product introductions and pricing by our competitors, the current scrutiny by regulatory bodies of accounting treatment of acquired in-process R&D and other factors set forth in the Company's filings with the Securities and Exchange Commission