WIXOM, MI -- (Marketwire) -- 08/16/10 -- Integral Vision, Inc. (OTCBB: INVI), a leading global supplier of automated display inspection technology, today announced financial results for the second quarter ending June 30, 2010.

Second Quarter 2010 Highlights

--  Integral Vision continues to receive orders from its largest customer.
    This customer has substantial expansion plans over the next several
    years that could significantly improve the company's financial outlook.
--  Integral Vision has OLED inspection orders in its backlog and expects
    this new market to grow significantly in the near future.
--  Integral Vision is very active in the LCD inspection market with
    several orders received this year.  We expect some of these
    opportunities to generate larger orders later this year.
--  Integral Vision has orders in its backlog from e-paper manufacturers
    and expects these order volumes to increase.

Second Quarter 2010 Financial Review

--  Net revenue for the second quarter was $240,000 compared to $530,000
    in first quarter 2010 and $443,000 in the second quarter of 2009.

--  Gross margin for the second quarter was 59 percent of sales.
    This compares with 62 percent of sales for the first quarter of 2010
    and 61 percent of sales for the first half of 2010, all of which are
    an improvement over the 50 percent gross margin recorded for fiscal
    year 2009.

--  Second quarter net loss was $801,000, or $0.02 per share, compared to a
    net loss of $455,000, or $0.01 per share, in the first quarter of 2010
    and a net loss of $755,000, or $0.03 per share, in the second quarter
    of 2009.

Charles J. Drake, chairman and CEO of Integral Vision, Inc. commented, "While revenues for the second quarter were down, we shipped several systems during the quarter where acceptance was not obtained before June 30, 2010, and therefore, not recognized as sales. We expect all of the deferred revenue at June 30 will be recognized in the third quarter. Our bookings are improving and our expectation is that orders from existing and new customers will continue to improve."

Looking ahead, Drake added, "Despite losses in the first half, we remain confident that 2010 will be much improved over recent years and the opportunity exists for us to have a substantial backlog entering 2011. Improved volumes with our existing margins can rapidly improve the Company's financial position."

TO ACCESS THE LIVE CONFERENCE CALL

Integral Vision will host a live conference call at 4:30 p.m. (ET) on Tuesday, August 24, 2010. To access the conference call, please call 1-480-629-9712 or 1-877-941-2068 approximately 5 to 10 minutes prior to the scheduled start time.

TO ACCESS A REPLAY OF THE CONFERENCE CALL

If you are unable to listen to the live conference call, it will be archived for replay. Shortly after the call, a telephonic replay will be available through Thursday, August 26, 2010 by dialing 1-303-590-3030 or 1-800-406-7325. The confirmation code 4352767 is required for the telephonic replay.

COMPANY'S INVESTOR E-MAIL LIST

To be added to Integral Visions investor email list, please contact Laura Guerrant-Oiye of Guerrant Associates at lguerrant@guerrantir.com.

ABOUT INTEGRAL VISION

Integral Vision, Inc. (OTCBB: INVI) offers display inspection technology that provides analysis of functional and cosmetic defects in the display to assure quality in the manufacturing process as well as verification of the final product. Integral Vision has been inspecting displays since 1992 and is an industry leader committed to providing automated solutions to the quality issues Microdisplay, OLED and LCD manufacturers face in today's competitive marketplace. More information can be found at Website: www.iv-usa.com.

"SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such factors and uncertainties include, but are not limited to: competitive conditions in the Company's markets and the effect of competitive products and pricing; technological development by the Company, its customers and its competition; the Company's available cash and access to debt and equity financing; and general economic conditions and conditions in the specific industries in which the company has significant customers. As a result, the Company's results may fluctuate. Additional information concerning risk factors that could cause actual results to differ materially from those projected in the forward-looking statements are contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's best estimates as of the date of this press release. The Company assumes no obligation to update such estimates except as required by the rules and regulations of the Securities and Exchange Commission.

FINANCIAL INFORMATION

The summary financial information contained in this press release, including the following information in tabular form, should be read in conjunction with the more detailed information contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 31, 2010 and our Form 10-K/A filed with the SEC on April 30, 2010 and the Company's Quarterly Report on Form 10-Q filed with the SEC on August 16, 2010.

                            INTEGRAL VISION, INC.
                          Condensed Balance Sheets



                                                  June 30,    December 31,
                                                    2010          2009
                                                (Unaudited)
                                                ------------  ------------
                                                      (in thousands)

Assets

Current assets:
 Cash                                           $         18  $         28
 Accounts receivable                                     114            50
 Inventories                                             222           190
 Other                                                    76            98
                                                ------------  ------------
Total current assets                                     430           366

Property and equipment:
 Building Improvements                                     4             4
 Production and engineering equipment                    357           354
 Furniture and fixtures                                   80            80
 Computer equipment                                      197           193
 Marketing/demonstration equipment                       139           139

                                                ------------  ------------
                                                         777           770
 Less accumulated depreciation                          (624)         (580)
                                                ------------  ------------
Net property and equipment                               153           190

Other assets -  net of accumulated amortization
 of $1,574,000 ($1,559,000 for 2009)                      51            61
                                                ------------  ------------
                                                $        634  $        617
                                                ============  ============


                             INTEGRAL VISION, INC.
                     Condensed Balance Sheets - Continued


                                                  June 30,    December 31,
                                                    2010          2009
                                                (Unaudited)
                                                ------------  ------------
                                                      (in thousands)
Liabilities and Stockholders' Deficit:

Current liabilities:
 Notes payable-current                          $      7,924  $      7,377
 Accounts payable                                        148           114
 Customer deposits                                       307           249
 Accrued compensation and related costs                  278           276
 Accrued interest                                        959           774
 Accrued product warranty                                106           108
 Other accrued liabilities                               130            95
 Deferred revenue for product sales                      194            72
                                                ------------  ------------
Total current liabilities                             10,046         9,065


Long-term debt                                            85             -

                                                ------------  ------------
Total liabilities                                     10,131         9,065
                                                ------------  ------------

Stockholders' deficit:
 Preferred stock, 400,000 shares authorized;
  none issued                                              -             -
 Common stock, without par value, 90,000,000
   shares authorized; 35,675,409 shares issued
   and outstanding (30,066,409 in 2009)               53,909        53,701
 Accumulated deficit                                 (63,406)      (62,149)
                                                ------------  ------------
Total stockholders' deficit                           (9,497)       (8,448)
                                                ------------  ------------
                                                $        634  $        617
                                                ============  ============




                          INTEGRAL VISION, INC.
                   Condensed Statements of Operations


                                                Three Months Ended June 30,
                                                    2010          2009
                                                ------------  ------------
                                                        (Unaudited)
                                                (In thousands, except per
Revenue:                                                share data)
 Net product sales                              $        240  $        443

Costs of sales:
 Costs of sales for products                              93           212
 Depreciation and amortization                             6             5
                                                ------------  ------------
Total costs of sales                                      99           217
                                                ------------  ------------
Gross margin                                             141           226

Other costs and expenses:
 Marketing                                               122           130
 General and administrative                              417           392
 Engineering and development                             229           251
                                                ------------  ------------
Total other costs and expenses                           768           773
                                                ------------  ------------
Operating loss                                          (627)         (547)
Other income                                               -            (2)
Interest expense                                        (174)         (206)
                                                ------------  ------------
Net loss                                        $       (801) $       (755)
                                                ============  ============

Basic and diluted loss per share:
 Net loss                                       $      (0.02) $      (0.03)
                                                ============  ============


Weighted average number of shares of common
 stock and  common stock equivalents, where
 applicable                                           34,978        30,066
                                                ============  ============



                              INTEGRAL VISION, INC.
                       Condensed Statements of Operations


                                                Six Months Ended June 30,
                                                    2010          2009
                                                ------------  ------------
                                                        (Unaudited)
                                                (In thousands, except per
Revenue:                                                share data)
 Net product sales                              $        770  $      1,246

Costs of sales:
 Costs of sales for products                             292           538
 Depreciation and amortization                             8             7
                                                ------------  ------------
Total costs of sales                                     300           545
                                                ------------  ------------
Gross margin                                             470           701

Other costs and expenses:
 Marketing                                               236           266
 General and administrative                              663           792
 Engineering and development                             412           539
                                                ------------  ------------
Total other costs and expenses                         1,311         1,597
                                                ------------  ------------
Operating loss                                          (841)         (896)
Other income                                               2             -
Interest expense                                        (418)         (368)
Extinguishment loss from modification and
 exchange of debt instruments                              -           (18)
                                                ------------  ------------
Net loss                                        $     (1,257) $     (1,282)
                                                ============  ============

Basic and diluted loss per share:
 Net loss                                       $      (0.04) $      (0.04)
                                                ============  ============


Weighted average number of shares of common
 stock and  common stock equivalents, where
 applicable                                           32,995        30,066
                                                ============  ============