Braintech: Intelligent Vision

Deliberate Steps for Long Term Value

We are entering an exciting new era in our company’s history, by creating opportunity for commercial growth through the creation of three operating companies (Industrial, Consumer, Government and Defense) and the recent acquisition of SHAFI Inc. and SHAFI Innovation Inc.

When we started to look closely at the companies founded and run by Adil Shafi, we realized that it was an ideal match for us. The acquisition will help us achieve our goal to diversify into new markets in a much shorter period of time because of SHAFI’s proven "in-the-field" commercial solutions and robotic integrated communications. With our two patents for single and multi-camera software and our nine additional patents pending ( Random Bin Picking), Braintech will remain a leader in Vision Guided Robotics. SHAFI’s software solutions for machine vision and robotic guidance applications are well established with companies who do business in markets important to Braintech’s diversification. We are stronger and better together.

The rationale for the SHAFI acquisition is simple: Access and acceleration of the Braintech business model. With over 300 installations, SHAFI touches the customer in many ways through many different solutions. Our concept is to wrap the leading edge state–of–the–art Braintech engine together with the SHAFI RELIABOT solutions and robotic integrated communications. Together we will provide our customers with an industry-large toolkit with many different and effective tools to choose from.

Adil will play an important role in the future of our company. As our new Chief Operating Officer, Adil will continue the outstanding solutions development work he's been doing for the past 20 years, grow our engineering capacity in the USA, and be in charge of training and support of the enhanced solutions. Our customers trust him and he'll have a briefcase full of advanced software solutions to deliver. Adil has also become a member of Braintech's Board of Directors. We welcome Adil with open arms. It's significant that he’s shown his faith in our future success, by accepting Braintech common shares for his company, which he built from the ground up.

Braintech has already been successful, through ABB's sales of TrueView, primarily in the automotive field. We plan to spread our wings next year and we can prove both that our technology works at the highest and most challenging industry standards, and that we can adapt it to different utilizations. SHAFI has been a solutions provider in aerospace, consumer, food and beverage, government, plastics, medical, pharmaceutical and semi-conductor industries. Together, we can go to our new customers and say, "Tell us what you need and we’ll make your business more productive and efficient. We have the technology to improve and increase your product line".

It is impossible to say how long it would have taken us to move into all these new markets, but it has likely saved us years. We have entered a transition period that should be smooth and productive. We have over 470 installations of over 125 different solutions. They are in 120 locations and have been sold to 60 customers. We are confident those numbers will grow and we will generate sufficient revenues along with them. We must be patient and always focus on long-term value creation. It is now all about execution and revenue, revenue, revenue.

We also continue to be focused on the sub-contract for a U.S. Navy research project we were awarded in June 2008, which we are developing with three partners. We are in an eight-month competition with two other groups to produce a concept for an automated weapons assembly on the high seas. One group will be awarded a contract to design and build the system for testing. We are working diligently and it is a top priority for our research department to be selected by the Navy, which would be an honor and a privilege in addition to being a major step forward for our business.

In addition to our work internally, we are excited to be demonstrating our ground breaking Random Bin Picking (RBP) technology at the International Manufacturing Technology Show (IMTS) with ABB, September 8-13, 2008. ABB has utilized our RBP technology in their new TrueView robotics systems for random bin picking, which offers greater efficiency and production capabilities than previous systems.Please come by ABB's booth #B-6114 at IMTS, Chicago, and say hello.

As the structure of our company adapts we plan to expand our offices, beginning in October. New corporate offices will open in Northern Virginia, and new USA engineering, technology, support and training offices in Detroit, where Adil and Jim Dara, our Chief Sales Officer, will be based. We believe these locations position us strategically to meet and service our customers. Our scientific research labs will continue their great work in North Vancouver, Canada.

We are not reducing our commitment to developing leading-edge technologies in our research labs, but with our acquisition of SHAFI, we are also becoming a market–driven operational company. We have a large inventory of dynamic software ready to be commercialized and we want to put it to use in as many places as possible. At Braintech, we believe there are no limits to how vision technology can improve how all of us live, work, and play.

Best regards,
Rick Weidinger
Chief Executive Officer