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COGNEX Machine Vision Selected by Canada's Largest Steel Producer

Cognex Corporation

NATICK, Mass. -- Aug. 2, 2004 -- Cognex Corporation (NASDAQ: CGNX), the world's leading supplier of machine vision systems, announced today that Canada's largest steel producer, Stelco Inc., has chosen Cognex's SmartView® Metals surface inspection system for its steel mill located in Ontario, Canada.

The Cognex SmartView system will detect defects in coated steel used for automotive body panels. SmartView is a state-of-the-art surface inspection system that automatically detects, identifies and displays defects in metals and other materials as they are produced. Cognex has sold more than 400 SmartView systems since its release in February 2000, making it the most successful product launch in the history of surface inspection systems.

‘‘As the global leader in supplying surface inspection solutions to the metals industry, Cognex has more experience in detecting, identifying and visualizing metal defects than any other company,’‘ said Markku Jaaskelainen, Senior Vice President and General Manager of Cognex's Surface Inspection Systems Division. ‘‘As a result, we have been able to equip SmartView with features that best meet the needs of metals customers, including their need for real-time access to inspection data.’‘

About Stelco
Stelco Inc. is Canada's largest and most diversified steel producer. Stelco is involved in all major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.. Stelco has a presence in six Canadian provinces and two states of the United States. It supplies steel products to such North American markets as hot rolled, cold rolled, and coated sheet, plate, bars and wire rod and manufactured products, such as wire and wire products, and pipe and tubular products. In 2003, Stelco produced 5.1 million tons of steel and supplied 4.7 million tons of steel products valued at $2.8 billion.

About Cognex
Cognex Corporation designs, develops, manufactures and markets machine vision systems, or computers that can ‘‘see.’‘ Cognex is the world's leader in the machine vision industry, having shipped more than 200,000 machine vision systems, representing over $1.5 billion in cumulative revenue, since the company's founding in 1981. Cognex's Modular Vision Systems Division, headquartered in Natick, Massachusetts, specializes in machine vision systems that are used for automating the manufacture of a wide range of discrete items and for assuring their quality. Cognex's Surface Inspection Systems Division, headquartered in Alameda, California, specializes in machine vision systems that are used for inspecting the surfaces of products manufactured in a continuous fashion, such as metals, paper and plastics. In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices located throughout North America, Japan, Europe, and Southeast Asia. Visit Cognex online at http://www.cognex.com.

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