Isra Vivion AG (ISIN: DE 0005488100), one of the leading  suppliers for machine vision systems, has acquired the British company IAL Ltd. and is at an  advanced stage of negotiations to acquire IAL’s sister company in the USA. The newly completed  acquisition means ISRA further expands both its position as the world-wide innovation and market  leader in the Glass division and its presence in the UK and Ireland. In doing so, ISRA continues to  follow the company's successful expansion strategy of dynamic internal and external growth.  IAL emerged from the English company Image Automation Ltd, a major competitor for ISRA in the  Glass division. Image Automation – unlike ISRA – used laser scanner technology. The company went  into receivership in spring of this year. The London-based successor company IAL is led by the  experienced manager John Claridge, and provides ISRA with a good foundation for growth in the UK  and Ireland geographic markets. As of now, John Claridge will look after the entire British and Irish  market for ISRA. Thanks to his profound sales and product expertise, he will also strengthen the  world-wide sales team in the Glass business unit.

Part of the cash received through the equity increase in spring 2006 will be used to finance the  acquisition. Under the terms of the purchase agreement, shares will not be used as payment.  Consequently, ISRA’s earnings will not be diluted. The purchase price is linked to an earn-out model  and is to be paid in installments.

Through the acquisition, ISRA expects to strengthen its local presence on the British and Irish market,  gain new customers and its sales power. Alongside the successful completion of this transaction,  negotiations with the US company Image Automation have entered a decisive phase. The acquisition  will improve ISRA’s position on the US market. In addition, the ISRA Board is currently in other  promising negotiations to merge with further interesting companies.

Following nine years of uninterrupted profitable growth, ISRA is set to continue the trend in the current  fiscal year. For the fiscal year 2006/2007 beginning October 1, 2006, ISRA plans double-digit growth  in turnover and profits. The Group’s provisional figures for the previous fiscal year 2005/2006 will be  published on December 15, 2006.