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Integral Vision, Inc. Announces
Second Quarter 2008 Financial Results

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Wixom, MI (August 14, 2008) - Integral Vision, Inc. (OTC Bulletin Board: INVI), a leading global supplier of automated display inspection technology, today announced financial results for the second quarter ending June 30, 2008.

SECOND QUARTER 2008 BUSINESS HIGHLIGHTS

  • Integral Vision's largest customer has completed test specifications for their new Taiwan plant. The Company has completed quotations based on these specifications, and orders are expected before the end of the third quarter. The planned production of MEMS displays in this facility is anticipated to be very significant for Integral Vision. The Company noted that shipments are expected to begin before the end of this year, and production is expected to continue increasing for several years.


  • A major computer manufacturer has specified Integral Vision's SharpEye™ system to all of its LCD panel suppliers. A deadline has been given to these suppliers that requires installation of the Company's systems before the end of 2008.


  • Integral Vision has shipped its first e-paper inspection system, and additional system orders from this customer are expected. In addition, the Company has had considerable interest from other e-paper manufacturers.

  • SECOND QUARTER 2008 FINANCIAL RESULTS

  • Net revenues for the second quarter of 2008 were $470,000. This represents an increase of $461,000 over first quarter 2008, and an increase of $376,000 over second quarter 2007.


  • Second quarter gross margin of 53 percent substantially improved on both a sequential and year-over-year basis.


  • The resulting second quarter loss of $649,000 decreased $197,000 from the first quarter of 2008, and $217,000 from the second quarter of 2007.
  • Charles J. Drake, Chairman and CEO of Integral Vision, Inc., commented, "Our improved financial results for the quarter reflect significant sales penetration with both LCD manufacturers and emerging technology display customers. Our confidence that 2008 will be a breakout year for the Company remains high. Interest is strong in our technology and product offerings. Bookings and quote activity have substantially accelerated and we expect that shipments will continue to be significantly stronger as the year progresses."

    Drake concluded, "Over the next several years, we expect a continuous ramping up of sales due to the new supplier inspection requirements imposed on display manufacturers by our computer manufacturing customer; and the emergence of new display technologies, in particular MEMS, e-paper and OLED displays, all of which constitute growth markets."

    TO ACCESS THE LIVE CONFERENCE CALL

    Integral Vision will host a live conference call at 4:30 p.m. (ET) on Thursday, August 14, 2008. To access the conference call, please call 303-262-2138 or 800-240-4186 approximately 5 to 10 minutes prior to the scheduled start time.

    TO ACCESS A REPLAY OF THE CONFERENCE CALL

    If you are unable to listen to the live conference call, it will be archived for replay. Shortly after the call, a telephonic replay will be available through Saturday, August 14, 2008, by dialing 303-590-3000 or 800-405-2236. The confirmation code 11117895 is required for the telephonic replay.

    COMPANY'S INVESTOR E-MAIL LIST

    To be added to Integral Visions investor email list, please contact Laura Guerrant of Guerrant Associates at lguerrant@guerrantir.com

    ABOUT INTEGRAL VISION, INC.

    Integral Vision, Inc. (OTC Bulletin Board: INVI), an ISO 9001 registered firm, offers display inspection technology that provides analysis of functional and cosmetic defects in the display to assure quality in the manufacturing process as well as verification of the final product. Integral Vision has been inspecting displays since 1992 and is an industry leader committed to providing automated solutions to the quality issues Microdisplay, OLED and LCD manufacturers face in today's competitive marketplace. More information can be found at Website: www.iv-usa.com.

    "SAFE HARBOR" Statement under the Private Securities Litigation Reform Act of 1995

    Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such factors and uncertainties include, but are not limited to: competitive conditions in the Company's markets and the effect of competitive products and pricing; technological development by the Company, its customers and its competition; the Company's available cash and access to debt and equity financing; and general economic conditions and conditions in the specific industries in which the company has significant customers. As a result, the Company's results may fluctuate. Additional information concerning risk factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's best estimates as of the date of this press release. The Company assumes no obligation to update such estimates except as required by the rules and regulations of the Securities and Exchange Commission.

    FINANCIAL INFORMATION

    The summary financial information contained in this press release, including the following information in tabular form, should be read in conjunction with the more detailed information contained in the Company's Form 10-Q filed with the Securities and Exchange Commission on August 14, 2008, and Company's Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on March 31, 2008.

    LINK TO TABLES

    TABLES Q208 (PDF)

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    Integral Vision Inc.
    49113 Wixom Tech Drive
    Wixom, MI 48393 USA
    Tel: +1 248.668.9230
    Fax: +1 248.668.9384

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