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AVT Reports Seventh Consecutive Quarter Of Growth

Press release from the issuing company

HOD HASHARON, ISRAEL – Advanced Vision Technology Ltd., the world’s leading provider of machine vision-based automatic inspection systems for the printing industry, announced that it has achieved its seventh consecutive quarter of growth, and reported a 24% growth in order bookings versus the same period of 2002, and 20% growth over the 2nd quarter of 2003. In the third quarter of 2003, the company recorded revenues of $4.4 million, up 34% year-on-year and up 5% versus Q2/2003. Revenues for the first nine months of 2003 were $12.7 million. This represents an increase of 47% compared to the first nine months of 2002. AVT recorded positive earnings in the third quarter, confirming the improved profitability shown in previous quarters. The company posted positive earnings both in its operating profit of $85 thousand (versus a loss of $858 thousand in Q3/2002) and its net profit of $299 thousand (versus a net loss of $582 thousand in Q3/2002). Earnings after taxes for the first nine months of 2003 were $378 thousand, compared to a loss of $2.56 million in the same period in 2002. The positive development of earnings was due to a better gross margin, which increased from 51% to 58.7%, and to an improved cost structure: While more money was spent on research & development (+7%), all other cost items declined in relation to revenues. "Third quarters are traditionally slower periods," said Shlomo Amir, AVT's President and CEO, "and the significant increase in order bookings by 24% to $4.6 million in this quarter indicates further growth potential for the future. "Several factors played a part in that growth," Shlomo Amir continued. "Revenues grew in both of our key target markets of label and packaging printing, and AVT has benefited from that strength. This is particularly gratifying since AVT had not specifically targeted label printing until 2002. This sector has already contributed 13% to overall order bookings in the third quarter of 2003. "Finally, in the third quarter, AVT successfully participated in two exhibitions: ProFlex, the German Flexo Technical Association's show in Stuttgart, and Labelexpo Europe, in Brussels,” Shlomo Amir said. “At both these events, our solutions were enthusiastically received, and we expect to see the fruits of these efforts in our future sales. "AVT is continuing on the course for sustained sales and profitability that it set nearly two years ago. The company plan is to build on its strong foundation for further internal growth and possible acquisitions," Shlomo Amir concluded.