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AVT Q2 Revenues up 23% to $5.2 Million

Press release from the issuing company

Hod-Hasharon, Israel, July 26, 2004 – Advanced Vision Technology Ltd. (AVT, Prime Standard of the Frankfurt Stock Exchange, ISIN: IL0010837248), the leading global provider of fully automatic optical inspection and quality assurance solutions for the printing, packaging and converting industries, today announced that it has recorded the tenth consecutive quarter of revenue growth. In the second quarter of fiscal year 2004, revenues increased to $5.2 million, up 23 percent compared to the same period in 2003, and up 6 percent compared to the first quarter of 2004. Revenues for H1 2004 totalled $10 million, an increase of 22% over the same period in 2003. The company’s profitability also continued to grow achieving 60.7% gross margin and 7.7% operating profit for the first six months of 2004. Net income for the first six months of 2004 was $857 thousand compared with $79 thousand in the respective period of 2003. Proforma operating income for H1/2004 (excluding amortization of deferred stock compensation) increased from $143 thousand in H1/2003 to $881 thousand in H1/2004. EBITDA increased from $328 thousand in H1/2003 to $1,047 thousand in the first six months of 2004. Diluted net earning per share was $0.19 in H1/2004, compared with $0.01 in H1/2003. Order bookings were strong in the second quarter, following a very strong first quarter. AVT booked $5.7 million in new orders, representing a book-to-bill ratio of 1.1. This represents an increase of 51 percent over Q2 2003, and makes the total of orders booked for H1 2004 $11.4 million, an increase of 72 percent over the same period in 2003. Shlomo Amir, president and CEO of AVT, said: “We are proud of these second quarter results. Our performance continues to improve with the continued strengthening of AVT’s position in the marketplace. “At drupa 2004, AVT showed seven different systems, including several new ones, and had a presence on the stands of major packaging press manufacturers. Sales and interest in our solutions has been worldwide, which is reflected in the geographic distribution of our sales,” Shlomo Amir concluded. AVT’s revenues for the first six months of 2004 by territory show a strong growth in sales outside Europe and the Americas, notably in Southeast Asia and India. Distribution of revenues for H1 2004 is: Europe 41%, Americas 36% and ROW 23% (12% in the same period in 2003). AVT employs 106 people and has more than 800 systems installed worldwide.