Perceptron Announces Sub 10mm Imager Products for Its Commercial Products Business

PLYMOUTH, MI–(EMWNews – July 16, 2008) – Perceptron, Inc. (NASDAQ: PRCP) today

announced that it has begun shipment of a new line of imager heads that are

smaller than 10 millimeters (mm) for the vision technology tools it

supplies to its strategic partners. The imager heads are up to 50% smaller

than the 17 mm imager heads that the Company initially developed for its

first vision technology tool. They allow for inspection and access into

much smaller openings and should be of great assistance to skilled trades

people, technicians and Do It Yourself (DIY) purchasers who require this

feature.

End users will now have access to affordable accessories that will fit onto

the current products sold in the market. In addition, these imagers will

create complete new models to be sold for small opening, live video picture

viewing in virtually any application. The imagers are waterproof and

electric shock resistant. The smaller imager heads are made of anodized

aluminum for increased durability and are typically mounted on three foot

to six-foot long flexible cables.

“Developing the capability to fit a camera, Light Emitting Diodes (LEDs),

and other proprietary technologies into much smaller heads means the

potential uses for our vision technology tools will increase

significantly,” said Harry Rittenour, Perceptron’s President and CEO.

Mr. Rittenour continued, “In other product news, our first commercial

product offering at Perceptron, the Ridgid® SeeSnake® micro™ was

named Plant Engineering magazine’s product of the year for 2007 and was

also a 2008 Dealer Design Award, GOLD winner. Perceptron continues to

investigate additional new opportunities for vision and technology tools

and has a series of commercial products and accessories of increasing

sophistication that we intend to introduce through our strategic partners

in future months.”

About Perceptron

Perceptron develops, produces, and sells non-contact measurement and

inspection solutions for industrial and commercial applications. The

Company’s Automated Systems Products provide solutions for manufacturing

process control as well as sensor and software technologies for non-contact

measurement and inspection applications. Automotive and manufacturing

companies throughout the world rely on Perceptron’s metrology solutions to

help them manage their complex manufacturing processes to improve quality,

shorten product launch times and reduce overall manufacturing costs.

Perceptron’s Technology Products provide innovative solutions for scanning

and inspection, serving industrial, trade and consumer applications.

Headquartered in Plymouth, Michigan, Perceptron has approximately 240

employees worldwide, with operations in the United States, Germany, France,

Spain, Brazil, Japan, Singapore and China. For more information, please

visit www.perceptron.com.

Safe Harbor Statement

Certain statements in this press release may be “forward-looking

statements” within the meaning of the Securities Exchange Act of 1934,

including the Company’s ability to develop and introduce new products and

the Company’s expectation as to the timing of revenue and net income

increases from new products which the Company has not yet released. The

Company assumes no obligation for updating any such forward-looking

statements to reflect actual results, changes in assumptions or changes in

other factors affecting such forward-looking statements. Actual results

could differ materially from those in the forward-looking statements due to

a number of uncertainties in addition to those set forth in the press

release, including, but not limited to, the dependence of the Company’s net

income levels on increasing revenues, the timing of orders and shipments

which can cause the Company to experience significant fluctuations in its

quarterly and annual revenue, order bookings, backlog and operating

results, timely receipt of required supplies and components which could

result in delays in anticipated shipments, the ability of the Company to

successfully compete with alternative and similar technologies, the ability

of the Company to develop and introduce new products, the ability of the

Company to attract and retain key personnel, especially technical

personnel, the quality and cost of competitive products already in

existence or developed in the future, rapid or unexpected technological

changes, and the effect of economic conditions. The ability of the Company

to develop and introduce new products, especially in markets outside of

automotive, is subject to a number of uncertainties, including general

product demand and market acceptance risks, the ability of the Company to

resolve technical issues inherent in the development of new products and

technologies, the ability of the Company to identify and satisfy market

needs, the ability of the Company to identify satisfactory distribution

networks, the ability of the Company to develop internally or identify

externally high quality cost effective manufacturing capabilities for the

products, general product development and commercialization difficulties,

and the level of interest existing and potential new customers may have in

new products and technologies generally.