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

Market Wire, July, 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(TM) 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.