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NATICK, MA, USA November 13, 2008

Cognex Announces Cost-Cutting Measures

NATICK, MA, November 13, 2008 — Cognex Corporation (NASDAQ: CGNX) today announced that it has taken meaningful steps to cut expenses to help ensure that it will continue profitable operations during these difficult economic times.  The reduction in expenses was accomplished through a number of different measures, the most meaningful ones of which are 1) the closing of the company’s facility in Georgia scheduled for mid-2009, and 2) the elimination of 60 full-time positions (approximately 7% of its worldwide headcount), primarily in the United States.  After the one-time effects of these cuts, projected savings from the actions described above are estimated to be approximately $6,000,000 on an annual basis, and are expected to be fully realizable beginning in 2010.   

As a result of the actions that the company has taken, Cognex expects to record a pre-tax charge of approximately $700,000 in the fourth quarter of 2008 (this full amount was included in the guidance given by Cognex on October 29, 2008).  And in the first half of 2009, Cognex expects to record an additional charge of approximately $1,700,000 related to the facility closure.  The distribution center that is currently based in Georgia will be consolidated into the company’s headquarters in Natick, Massachusetts. 

“The actions announced today were not made easily; the individuals who were let go were all hardworking, experienced and dedicated employees; but unfortunately the actions were necessary to ensure the continued profitability of our company,” said Dr. Robert J. Shillman, the Chairman and Chief Executive Officer of Cognex.  “Given the rather bleak economic outlook and the expectation that conditions will not improve soon, it is important to align our expenses as quickly as possible to the lower level of business that we anticipate in 2009.  The difficult steps that we have taken should allow us to maintain our long record of profitable operations, even as we continue to invest in strategic initiatives to ensure the long-term success of our company.” 

Susan Conway
Director of Investor Relations
Cognex Corporation
(508) 650-3353

Robin Pratt
Senior Manager, Corporate Communications
Cognex Corporation
(508) 650-3384


About Cognex

Cognex Corporation designs, develops, manufactures, and markets a range of products that incorporate sophisticated machine vision technology that gives them the ability to “see.” Cognex products include barcode readers, machine vision sensors, and machine vision systems that are used in factories, warehouses, and distribution centers around the world to guide, gauge, inspect, identify, and assure the quality of items during the manufacturing and distribution process.

Cognex is the world's leader in the machine vision industry, having shipped more than 1 million vision-based products, representing over $4 billion in cumulative revenue, since the company's founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has regional offices and distributors located throughout the Americas, Europe, and Asia. For details visit Cognex online at http://www.cognex.com.

Cognex, PatMax and In-Sight and EasyBuilder are registered trademarks and PatMax RedLine and In-Sight Explorer are trademarks of Cognex Corporation. All other trademarks are the property of their respective owners.


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