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-- Revenue Grows 11.5% --

-- Net Loss Per Share Narrows for Third Straight Quarter --

-- Company Sees 1999 Revenue Growth of 30%, Renewed Profitability for Q4 --

    LAKE MARY, Fla., Aug. 3 /PRNewswire/ -- FARO Technologies, Inc.
 (Nasdaq:   FARO), today announced that revenue during the second quarter of 1999
 grew 11.5% to $8.6 million from $7.7 million in the second quarter of 1998.
 The Company's net loss decreased by 90% for the second quarter of 1999 to
 $165,000 from a net loss of $1.7 million for the year ago quarter.  The loss
 per share continued to narrow for the third quarter in a row to a negative
 $0.01 per basic and diluted share, from a net loss of a negative $0.16 per
 basic and diluted share in the second quarter of 1998.
     The Company also reported operating income before interest, taxes,
 depreciation and amortization (EBITDA) of $258,000 in the second quarter of
 1999, compared with EBITDA of negative $1.5 million in the second quarter of
 1998.  EBITDA continued to improve from negative $502,000, negative $791,000
 and negative $2.0 million for the three preceding quarters, respectively.
     "We are pleased not only with the sales growth in the quarter but also
 with our EBITDA and bottom line progress over the last three quarters," said
 Simon Raab, President and Chief Executive Officer.  "The quarter-to-quarter
 trend is increasingly positive, indicating our return to operating
 profitability.  We are reporting improved sales over a year ago for the third
 quarter in a row, and our loss has steadily narrowed over the last three
 quarters -- from $0.25 in Q3 1998 to $0.13 in Q4 1998, then to $0.10 in
 Q1 1999, and now to $0.01.  These results reflect the impact of our sales and
 marketing efforts, our acquisition integration and our expanded product line."
     "We are also pleased that the weakening of European currencies relative to
 the U.S. dollar minimally impacted earnings by no more than $0.01 per share on
 a pre-tax basis," Raab added.  "Backlog at the end of the quarter was
 $1.6 million, compared with $1.9 million for the first quarter.  This strong
 backlog indicates the continuation of the high growth in new orders reported
 for the previous quarter.  Excluding German sales resulting from our
 acquisition, for purposes of comparability, orders in the second quarter of
 1999 increased 34.9% from the year-ago quarter, and year-to-date orders
 increased 41.4%."
     "Regionally, sales for the quarter increased 23% in the U.S. and 35% in
 the three European countries where we have offices.  Sales decreased 40%
 elsewhere, suggesting the need for our continued investment in regional sales
 offices.  However continued weakness in Asia and other regions demands caution
 in their selection for expansion."
     "Looking ahead, our sizable presence in Europe exposes us to a negative
 seasonal impact because of the summer slowdown common there," Raab noted.
 "Because of this European seasonality and the absence of a perceptible
 recovery in Asia, which contributed only 3.4% of our second-quarter sales, we
 are projecting flat revenues and earnings in the third quarter, compared to
 the second quarter.  For the full year, we expect growth in revenue for 1999
 over 1998 will be about 30%, representing annual revenues for 1999 of
 approximately $36 million and a loss for the year of $0.04 to $0.06 per share.
 More importantly from the standpoint of tracking our recovery this would
 result from a gain for the second half of $0.05 to $0.07."
     Faro reported 11,012,619 weighted average shares outstanding increased
 4.6% for the second quarter of 1999, compared with 10,531,132 for the year-ago
 quarter.  The Company's balance sheet at the end of the first half included
 total assets of $48.5 million, no debt and total liabilities of $4.6 million.
     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 portable measurement equipment, a
 broad line 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 Website 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:
 
     -- customer acceptance of the company's products,
     -- seasonality in Europe,
     -- foreign exchange fluctuation,
     -- 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 this release.  The company disclaims, however, any
 intent or obligation to update these forward-looking statements.
 
 
                              FARO TECHNOLOGIES, INC.
                              SUMMARY FINANCIAL TABLE
 
                           CONSOLIDATED INCOME STATEMENTS
                                    (Unaudited)
 
                            Three Months Ended          Six Months Ended
                                 June 30,                   June 30,
                             1999         1998          1999         1998
 
     Sales               $8,611,436    $7,721,808  $15,515,932  $14,404,009
     Cost of Sales        3,447,453     2,779,843    6,186,182    5,461,605
 
     Gross Profit         5,163,983     4,941,965    9,329,750    8,942,404
 
     Operating Expenses
       Selling            2,750,972     2,211,523    5,295,086    3,795,059
       General and
        Administrative    1,199,013       517,136    2,506,347    1,115,718
       Depreciation and
        amortization        863,627       569,961    1,728,096      680,323
       Research and
        development         913,301       435,534    1,687,567      821,978
       Employee stock
        options              42,228        43,041       84,474       86,082
       In-process R&D from
        acquisition              --     3,210,000           --    3,210,000
 
       Total operating
        expenses          5,769,141     6,987,195   11,301,570    9,709,160
 
     Income (Loss) From
      Operations           (605,158)   (2,045,230)  (1,971,820)    (766,756)
 
     Interest Income        262,254       302,835      356,723      622,779
     Other Income (Expense)  70,474         5,408      150,401        2,754
     Interest Expense            --        (7,865)          --       (7,865)
 
     Income (Loss) Before
      Income Taxes         (272,430)   (1,744,835)  (1,464,696)    (149,088)
     Income Tax Benefit
      (Expense)             107,875        35,119      159,350     (537,237)
 
     Net Income (Loss)    $(164,555)  $(1,709,716) $(1,305,346)   $(686,325)
 
     Net Income (Loss)
      Per Common Share -
      Basic                  $(0.01)       $(0.16)       $(0.12)     $(0.07)
 
     Weighted Average
      Shares             11,012,619    10,531,132   11,011,943   10,239,613
 
     Net Income (Loss)
      Per Common Share -
      Assuming Dilution      $(0.01)       $(0.16)       $(0.12)     $(0.07)
 
     Weighted Average
      Shares and Assumed
      Conversions        11,012,619    10,531,132   11,011,943   10,239,613
 
 
 
                            CONSOLIDATED BALANCE SHEETS
                                    (Unaudited)
                            June 30,    December 31,
                              1999          1998
 
     Current Assets       $34,840,621   $34,595,076
 
     Total Assets         $48,512,442   $49,120,147
 
     Current Liabilities   $4,603,169    $3,597,307
 
     Total Liabilities     $4,634,104    $3,744,756
 
     Shareholders' Equity  43,878,338    45,375,391
 
     Total Liabilities
      and Shareholders'
      Equity              $48,512,442   $49,120,147
 
 

SOURCE  FARO Technologies, Inc.