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Integral Vision, Inc. Announces
Second Quarter 2010 Results

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Wixom, MI (August 16, 2010) - 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, 2010.

Second Quarter 2010 Highlights

  • Integral Vision continues to receive orders from its largest customer. This customer has substantial expansion plans over the next several years that could significantly improve the company's financial outlook.


  • Integral Vision has OLED inspection orders in its backlog and expects this new market to grow significantly in the near future.


  • Integral Vision is very active in the LCD inspection market with several orders received this year. We expect some of these opportunities to generate larger orders later this year.


  • Integral Vision has orders in its backlog from e-paper manufacturers and expects these order volumes to increase.


  • Second Quarter 2010 Financial Review

  • Net revenue for the second quarter was $240,000 compared to $530,000 in first quarter 2010 and $443,000 in the second quarter of 2009.


  • Gross margin for the second quarter was 59 percent of sales. This compares with 62 percent of sales for the first quarter of 2010 and 61 percent of sales for the first half of 2010, all of which are an improvement over the 50 percent gross margin recorded for fiscal year 2009.


  • Second quarter net loss was $801,000, or $0.02 per share, compared to a net loss of $455,000, or $0.01 per share, in the first quarter of 2010 and a net loss of $755,000, or $0.03 per share, in the second quarter of 2009.


  • Charles J. Drake, chairman and CEO of Integral Vision, Inc. commented, "While revenues for the second quarter were down, we shipped several systems during the quarter where acceptance was not obtained before June 30, 2010, and therefore, not recognized as sales. We expect all of the deferred revenue at June 30 will be recognized in the third quarter. Our bookings are improving and our expectation is that orders from existing and new customers will continue to improve."

    Looking ahead, Drake added, "Despite losses in the first half, we remain confident that 2010 will be much improved over recent years and the opportunity exists for us to have a substantial backlog entering 2011. Improved volumes with our existing margins can rapidly improve the Company's financial position."

    TO ACCESS THE LIVE CONFERENCE CALL

    Integral Vision will host a live conference call at 4:30 p.m. (ET) on Tuesday, August 24, 2010. To access the conference call, please call 1-480-629-9712 or 1-877-941-2068 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 Thursday, August 26, 2010 by dialing 1-303-590-3030 or 1-800-406-7325. The confirmation code 4352767 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-Oiye of Guerrant Associates at lguerrant@guerrantir.com

    ABOUT INTEGRAL VISION, INC.

    Integral Vision, Inc. (OTC Bulletin Board: INVI) 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 31, 2010 and our Form 10-K/A filed with the SEC on April 30, 2010 and the Company's Quarterly Report on Form 10-Q filed with the SEC on August 16, 2010.

    LINK TO TABLES

    TABLES Q210 (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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