Today’s Agenda u Coreco at a glance u Performance review u Industry update u Strategy for growth u Outlook for 1999 and beyond u Coreco at a glance u Performance review u Industry update u Strategy for growth u Outlook for 1999 and beyond

Coreco at a Glance

Company 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 Imaging Principal Market Segments

Industrial Inspection

Machine Vision Principal Market Segments

Sales by Application Machine vision (21%) Medical imaging (36%) Industrial inspection (26%) Distributors (10%) Multimedia and surveillance (7%)

Customer Base System Integrators (15%) OEMs (85%)

Sales 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 improving u Currencies have recovered u Japan records 1.9% GDP growth u Book-to-bill ratio 1.3 u Currencies have recovered u Japan records 1.9% GDP growth u Book-to-bill ratio 1.3 Semiconductor industry is on the rebound Industry Context

u Camera Technology –High-speed/resolution digital cameras –Performance driven applications –e.g. Python, Cobra, Viper, Fast OCR u PC Technology –Pentium-based software –Cost sensitive applications –e.g. Bandit, WiT u Camera Technology –High-speed/resolution digital cameras –Performance driven applications –e.g. Python, Cobra, Viper, Fast OCR u PC Technology –Pentium-based software –Cost sensitive applications –e.g. Bandit, WiT Market drivers Industry Context

Coreco in the Computer Vision Market Coreco is positioned to enter new applications and new markets for our high-end vision products. Coreco is positioned to enter new applications and new markets for our high-end vision products.

Strategy for High-End Growth

Vision Platforms Image Boards Turnkey Systems Coreco: Moving Up the Food Chain $200 Million Market size $800 Million $2.9 Billion Total $3.9 Billion

Four-point Strategy u Continue to invest aggressively in R&D u Acquire complementary technologies and businesses u Provide integrated vision solutions to our clients u Target new markets and applications for our products u Continue to invest aggressively in R&D u Acquire complementary technologies and businesses u Provide integrated vision solutions to our clients u Target new markets and applications for our products

Continue to Invest Aggressively in R&D u Viper, WiT and Ice-Storm u Coreco hardware and FAST application software R&D Expenditures (in millions $) R&D Expenditures (in millions $) New products in 1998 Development of integrated vision solutions Development of integrated vision solutions

New Products Viper FAST OCR/ FAST Match FAST OCR/ FAST Match Ice Storm Sapera Python Compact PCI Python Compact PCI

Acquire 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’s Provide Vision Solutions for OEM’s New hardware products FAST application software Vision Platforms for OEM’s Vision Platforms for OEM’s plus equals

Target New Markets and Applications for our Products u FAST application software u Plasma and LCD panel inspection u Embedded product for medical imaging applications u Europe: Sales up by 10% in F1998 u Asia: Sales more than doubled in Q1,99 u FAST application software u Plasma and LCD panel inspection u Embedded product for medical imaging applications u Europe: Sales up by 10% in F1998 u Asia: Sales more than doubled in Q1,99

Outlook for 1999 and Beyond Outlook for 1999 and Beyond

Outlook u Complete integration of Dipix –Manufacturing moved to Montreal –Merge sales channels –Dipix contribution: target 20% of total revenues u Complete integration of Dipix –Manufacturing moved to Montreal –Merge sales channels –Dipix contribution: target 20% of total revenues

Outlook u Develop value-added, integrated vision solutions u Focus on medical and machine vision u Continue to develop Asian market u Seek acquisition of complementary companies/technologies u Ramp up revenues and earnings u Develop value-added, integrated vision solutions u Focus on medical and machine vision u Continue to develop Asian market u Seek acquisition of complementary companies/technologies u Ramp up revenues and earnings

Management u Robert Mee - Chairman u Keith Reuben - CEO u Louis Daigneault - CFO u Robert Mee - Chairman u Keith Reuben - CEO u Louis Daigneault - CFO

Worldwide Distribution Network North America 66% Europe 20% Europe 20% Asia & Pacific 14% Asia & Pacific 14%

Customer Base System Integrators (15%) OEMs (85%) Philips Electron Optics Endosonics Sokkia ATS Sony Corporation Luma Corporation FEI Electroglas Mitutoyo Optimed Ram Optical Autolog Topcon BST Promark Raytheon Vista Medical GE Lighting SV Research Photon Kinetics Newport Corporation Nuclear Security Services Corp KLA-Tencor Takaoka