Today’s AgendaToday’s Agenda

Coreco at a glance Performance review Industry update Strategy for growth Outlook for 1999 and

beyond

Coreco at a glance Performance review Industry update Strategy for growth Outlook for 1999 and

beyond

Coreco at a GlanceCoreco at a Glance

Company ProfileCompany Profile

Coreco designs, develops manufactures and markets hardware and software for the computer vision industry.

Coreco designs, develops manufactures and markets hardware and software for the computer vision industry.

Medical ImagingMedical Imaging

Principal Market SegmentsPrincipal Market Segments

Principal Market SegmentsPrincipal Market Segments

Industrial InspectionIndustrial Inspection

Machine VisionMachine Vision

Principal Market SegmentsPrincipal Market Segments

Sales by ApplicationSales by Application

Machine vision (21%)

Medical imaging (36%)

Industrial inspection (26%)

Distributors (10%)

Multimedia and surveillance (7%)

Customer BaseCustomer Base

System Integrators (15%)

OEMs (85%)

Sales by Geographic AreaSales by Geographic Area

F1998

Asia-Pacific (9%)

Q1-99

USA (69%)

Europe (16%)

Canada (6%)

Asia-Pacific (14%)

USA (59%)

Europe (20%)

Canada (7%)

Computer Vision Industry:An Update

Computer Vision Industry:An Update

Asian economies are improvingAsian economies are improving Currencies have recovered Japan records 1.9% GDP growth

Book-to-bill ratio 1.3

Currencies have recovered Japan records 1.9% GDP growth

Book-to-bill ratio 1.3

Semiconductor industry is on the reboundSemiconductor industry is on the rebound

Industry ContextIndustry Context

Camera Technology– High-speed/resolution digital cameras– Performance driven applications– e.g. Python, Cobra, Viper, Fast OCR

PC Technology– Pentium-based software– Cost sensitive applications– e.g. Bandit, WiT

Camera Technology– High-speed/resolution digital cameras– Performance driven applications– e.g. Python, Cobra, Viper, Fast OCR

PC Technology– Pentium-based software– Cost sensitive applications– e.g. Bandit, WiT

Market driversMarket drivers

Industry ContextIndustry Context

Coreco in the Computer Vision Market

Coreco in the Computer Vision Market

Coreco is positioned to enternew applications and newmarkets for our high-end

vision products.

Coreco is positioned to enternew applications and newmarkets for our high-end

vision products.

Strategy for High-End GrowthStrategy for High-End Growth

Vision Platforms

Image Boards

Turnkey Systems

Coreco: Moving Up the Food Chain

Coreco: Moving Up the Food Chain

$200 MillionMarket sizeMarket size

$800 Million $2.9 Billion

Total $3.9 BillionTotal $3.9 Billion

Four-point StrategyFour-point Strategy

Continue to invest aggressively in R&D Acquire complementary technologies

and businesses Provide integrated vision solutions to

our clients Target new markets and applications

for our products

Continue to invest aggressively in R&D Acquire complementary technologies

and businesses Provide integrated vision solutions to

our clients Target new markets and applications

for our products

Continue to Invest Aggressively in R&DContinue to Invest Aggressively in R&D

94 95 96 97 98

Viper, WiT and Ice-Storm

Coreco hardware and FAST application software

0.90.91.21.2 1.31.3

1.81.8

2.52.5R&D Expenditures(in millions $)R&D Expenditures(in millions $) New products in 1998New products in 1998

Development of integrated vision solutionsDevelopment of integrated vision solutions

New ProductsNew Products

ViperViper

FAST OCR/FAST Match

FAST OCR/FAST Match

Ice StormIce Storm

SaperaSapera

Python Compact PCI

Python Compact PCI

Acquire Complementary Technologies and BusinessesAcquire Complementary Technologies and Businesses

Logical Vision (1997)*Visual programming software*Acquired machine vision expertise

Logical Vision (1997)*Visual programming software*Acquired machine vision expertise

Dipix (1999)*Imaging board business*Acquired market share and engineering resources* Added $4.0 million in revenues

Dipix (1999)*Imaging board business*Acquired market share and engineering resources* Added $4.0 million in revenues

Provide Vision Solutions for OEM’sProvide Vision Solutions for OEM’s

New hardware productsNew hardware products

FAST application softwareFAST application software

Vision Platformsfor OEM’s

Vision Platformsfor OEM’s

plus

equals

Target New Markets and Applications for our ProductsTarget New Markets and Applications for our Products

FAST application software Plasma and LCD panel inspection Embedded product for medical

imaging applications Europe: Sales up by 10% in F1998 Asia: Sales more than doubled in

Q1,99

FAST application software Plasma and LCD panel inspection Embedded product for medical

imaging applications Europe: Sales up by 10% in F1998 Asia: Sales more than doubled in

Q1,99

Outlook for 1999and Beyond

Outlook for 1999and Beyond

OutlookOutlook

Complete integration of Dipix

– Manufacturing moved to Montreal

– Merge sales channels– Dipix contribution: target 20% of

total revenues

Complete integration of Dipix

– Manufacturing moved to Montreal

– Merge sales channels– Dipix contribution: target 20% of

total revenues

OutlookOutlook

Develop value-added, integrated vision solutions

Focus on medical and machine vision Continue to develop Asian market Seek acquisition of complementary

companies/technologies Ramp up revenues and earnings

Develop value-added, integrated vision solutions

Focus on medical and machine vision Continue to develop Asian market Seek acquisition of complementary

companies/technologies Ramp up revenues and earnings