Integral Vision, Inc. Announces Second Quarter 2009 Results

WIXOM, MI--(Marketwire - August 13, 2009) - Integral Vision, Inc. (OTCBB: INVI), a leading
global supplier of automated display inspection technology, today announced
financial results for the second quarter ending June 30, 2009.

Second Quarter 2009 Highlights

-- Integral Vision's main customer continues to order and install
inspection equipment at their new dedicated production facility. This
plant is expected to ramp up production throughout this year and into 2010.
Integral Vision expects expanded revenue growth as a result of the increase
in production of the MEMS (Micro Electro-Mechanical Systems) displays at
this new facility. The Company currently has its largest installed base of
equipment at this customer's facility and the current production is only a
fraction of the mass production planned. This dedicated MEMS display
production facility was formally announced on June 15, 2009.

Second Quarter 2009 Financial Review

-- Net revenue for the second quarter was $443,000 compared to $803,000
in first quarter 2009 and $470,000 in the second quarter of 2008.

-- Gross margin for the second quarter was 51 percent of sales. This
compares with 59 percent of sales for the first quarter of 2009 and 56
percent of sales for the first half of 2009, all of which are an
improvement over 46 percent of sales recorded for fiscal year 2008.

-- Second quarter net loss was $755,000, or $0.03 per share, compared to
a net loss of $527,000, or $0.02 per share, in the first quarter of 2009
and a net loss of $649,000, or $0.02 per share, in the second quarter of
2008.

Charles J. Drake, Chairman and CEO of Integral Vision, Inc. commented,
"Revenue for the first half of 2009 is better than the entire year's
revenue of 2008. Revenues for the second quarter would have showed a
sequential improvement over the first quarter of 2009 had several systems
that shipped during the quarter received final acceptance from the customer
by the end of the second quarter. In addition, we had several other system
shipments delayed from the second quarter to the third quarter due to
revised customer specifications."

Looking ahead, Drake added, "Despite the decline in revenues for the second
quarter, we remain confident in our forecast and continue to expect 2009 to
be the Company's best. Sales growth will extend into 2010 and beyond.
Sales penetration into emerging display technologies like MEMS and e-Paper
will be the primary reason for expanded sales, with LCD inspection also
providing a positive impact. These markets are very large and a modest
market penetration will substantially and quickly 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
Thursday, August 13, 2009. To access the conference call, please call
1-480-629-9713 or 1-877-941-2069 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 Saturday, August 15, 2009 by dialing 1-303-590-3030 or
1-800-406-7325. The confirmation code 4136923 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

Integral Vision, Inc. (OTCBB: 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 and Section 21E of the Securities Act of 1934. 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 are 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 on March 31, 2009 and the Company's Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on August 13, 2009.

Balance Sheet
Integral Vision, Inc.
June 30, 2009

June 30, December 31,
2009 2008
(Unaudited)
----------- -----------
(in thousands)

Assets

Current assets:
Cash $ 14 $ 144
Accounts receivable 225 208
Inventories 313 325
Other 75 131
----------- -----------
Total current assets 627 808

Property and equipment:
Building Improvements 4 4
Production and engineering equipment 347 234
Furniture and fixtures 80 80
Computer equipment 191 191
Marketing/demonstration equipment 139 139

----------- -----------
761 648
Less accumulated depreciation (536) (491)
----------- -----------
Net property and equipment 225 157

Other assets - net of accumulated amortization
of $1,537,000 ($1,519,000 for 2008) 68 72
----------- -----------
$ 920 $ 1,037
----------- -----------
Current liabilities:
Notes payable $ 2,495 $ 1,786
Accounts payable 199 141
Customer deposits 110 -
Accrued compensation and related costs 279 283
Accrued interest 554 446
Accrued product warranty 114 84
Other accrued liabilities 40 54
Deferred revenue for product sales 175 656
---------- ----------
Total current liabilities 3,966 3,450

Long-term debt 4,051 3,671

---------- ----------
Total liabilities 8,017 7,121
---------- ----------

Stockholders' deficit:
Preferred stock, 400,000 shares authorized; none
issued - -
Common stock, without par value, stated value $.20
per share; 90,000,000 shares authorized;
30,066,409 shares issued and outstanding 6,013 5,913
Additional paid-in capital 47,560 47,391
Accumulated deficit (60,670) (59,388)
---------- ----------
Total stockholders’ deficit (7,097) (6,084)
---------- ----------
$ 920 $ 1,037
========== ==========

Statements of Operations
Integral Vision, Inc.
(in thousands, except per share data)
(unaudited)

Quarter Ended Six Months Ended
---------------------------- ------------------
June 30, March 31, June 30, June 30, June 30,
2009 2009 2008 2009 2008
-------- -------- -------- -------- --------
Revenue:
Net product sales $ 443 $ 803 $ 445 $ 1,246 $ 455
Net revenue from product
development agreements - - 25 - 25
-------- -------- -------- -------- --------
Total revenues 443 803 470 1,246 480
Costs of sales:
Costs of sales for
products 212 326 215 538 259
Depreciation and
amortization 5 2 4 7 8
-------- -------- -------- -------- --------
Total costs of sales 217 328 219 545 267
-------- -------- -------- -------- --------
Gross margin 226 475 251 701 213

Other costs and expenses:
Marketing 130 136 191 266 339
General and
administrative - net 392 400 340 792 672
Engineering and
development - net 251 288 228 539 460
-------- -------- -------- -------- --------
Total other costs and
expenses 773 824 759 1,597 1,471
-------- -------- -------- -------- --------
Operating loss (547) (349) (508) (896) (1,258)
Other income (deductions) (2) 2 1 - -
Extinquishment loss from
exchange of debt
instruments - (18) - (18) -
Interest expense (206) (162) (142) (368) (237)
-------- -------- -------- -------- --------
Net loss $ (755) $ (527) $ (649) $ (1,282) $ (1,495)
======== ======== ======== ======== ========

Basic and diluted loss
per share:
Net loss $ (0.03) $ (0.02) $ (0.02) $ (0.04) $ (0.05)
======== ======== ======== ======== ========

Weighted average number
of shares of common
stock and common stock
equivalents, where
applicable 30,066 30,066 29,566 30,066 29,566
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