FARO Technologies Reports Preliminary Third-Quarter Revenue

                            -- Revenues Up 40% --
                             -- Orders Up 30% --

LAKE MARY, Fla., Oct. 7 /PRNewswire/ -- FARO Technologies, Inc. (Nasdaq: FARO), today announced that it expects to report revenues of approximately $7.0 million for the third quarter ended September 30, 1999, nineteen per cent less than its previously announced target of $8.6 million. The estimated revenues represent an increase of approximately 40% from $5.0 million for the year-ago quarter. New orders increased from approximately $6.3 million for the third quarter of 1998 to approximately $8.2 million for the third quarter of 1999 -- up approximately 30%, the company also said.

"We are pleased with the significant increases in revenues and orders, despite the generally lower pricing of our new product line introduced in September 1998," said Simon Raab, President and Chief Executive Officer. "But for the timing of a large number of orders received in late September, we would have reached our revenue goal for the quarter. With the slow summer season quarter behind us and even without our backlog, we look forward to strong fourth quarter revenues."

The Company expects to announce its earnings for the third quarter on Wednesday, November 3, 1999.

FARO Technologies, Inc. and its international subsidiaries are pioneers and market leaders in the Computer Aided Manufacturing Measurement (CAMM) market, which is the final frontier of the Computer Aided Design (CAD) revolution. The company's hardware and software products play a key role in the worldwide trend toward CAD-based total quality management for shortened production cycles and in total quality management for the reduction in scrap and rework. FARO's product line includes FaroArm portable measurement equipment, a broad range of CAD-based inspection software for portable and fixed-base coordinate measurement machines, and factory-level statistical process control (SPC) software. FARO's products are used worldwide by a wide variety of manufacturing companies, both large and small. News and information are available at the company's Web site at http://www.faro.com .

To receive additional information on FARO Technologies, Inc. via fax at no charge, dial 1-800-PRO-INFO and enter code FARO. For international access, dial 732-544-2850.

Statements contained in this press release that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities and Litigation Reform Act of 1995. In addition, words such as "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to:

    -- final third-quarter 1999 revenue data;
    -- customer acceptance of the company's products,
    -- the impact of competitive products and pricing,
    -- the other risks detailed in the company's 10-K report and other filings
       from time to time with the Securities and Exchange Commission.

Forward-looking statements in this release represent the company's judgment as of the date of the release. The company disclaims, however, any intent or obligation to update these forward-looking statements.
SOURCE FARO Technologies Inc.
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