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Braintech Inc. > Press Release
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NEWS - Where We Are and Where We Are Going CEO Letter & 10KSB Announcement

Posted by: AGORACOM on March 28, 2008 12:54PM


Washington, DC US, March 28, 2008 - Braintech Inc. (BRHI - OTCBB), With the release of our latest 10-KSB annual report, I want to share with you what we've been doing at Braintech since I became Chief Executive Officer approximately 148 days ago. It has been a busy, challenging and rewarding time and has reinforced our confidence that we have the employees, products and technology to reach new heights in the emerging field of Machine Vision and Vision Guided Robotics.

Our first order of business was to meet with our strategic partner ABB, which we did in December and January. We already do a substantial portion of our business with ABB, an Industrial giant that sells our patented Single Camera 3D software through its TrueView state-of-the-art products, and we want to strengthen and expand our partnership. ABB has advanced robotics hardware and we have cutting-edge software. We believe we can help each other move into new areas of robotic applications for Industry and Government.

We announced our breakthrough Random Bin Picking software in February and we expect our first commercial installation in the third quarter of this year. Once RBP is seen in action, we think industry will embrace it.

Our second focus was to confirm the financial health of our business. We are 14 years old and, like any teenager, we are getting stronger as we grow. Although Braintech is a micro-cap company and is fully scaleable in its technology, it can and will grow nicely. Our gross margins-revenue minus the cost of the goods sold-were approximately 92 percent for 2007 and approximately 90% for 2006. Our cash flow from operations for 2007 was a positive 21 percent of revenue, a turnaround from a negative 71 percent in 2006. We see our operating cash flow becoming even healthier in 2008.

Our balance sheet is clean and strong, albeit small at the moment. We have achieved operating break-even recently. Again, we are a teenager and we need to invest in our future to reach full development, so there is this caveat: We are here to grow and develop the business and we will require additional revenue and investment to sustain our focused growth objectives.

It is clear we have developed the right technology at the right time. Now we need to put it to work. We took a hard look at our business strategy when we arrived in November and have tuned, adjusted and redirected it. We have initiated a new plan to deploy our technology in new vertical markets. We want to grow our business in the Industrial sector as well as move into the Government and Consumer markets and are currently working multiple pursuits in these new areas. We think about-and are- commercializing our technology every day. As is my background, we are actively researching and identifying the best technology partners moving forward.

We believe it is of utmost importance to "touch the customer". We are thus committed to building stronger relationships with our existing blue-chip customer base and we strive every day to meet and attract new customers and end partners to our patent-protected portfolio of technology. Currently, we have over 170 product installations in 39 unique locations with 21 different end users. Additionally, the company has sold approximately 15 developer licenses to date. The company has received direct orders from four customers and now proudly boasts an approximate $700,000 positive operating cash flow for 2007.

To be sure, we expect a bit more pressure on our gross margin as we introduce new solutions to new markets. Our financial goal is to maintain industry-leading margins while scaling our technologies. As revenues increase (scale) we will begin to see the fruits of our operating leverage grow and blossom.

Good companies always begin and grow with good employees. To this end, we are proud of the bonus stock and stock options plan in place in order to retain our existing employees as well as to attract future industry-leading talent to our company. We need brain power for Braintech to be all that it can be. We certainly do not believe these additional bonus shares will dilute shareholder value, but in fact prove in the long run to be accretive.

We have designed and launched our new Web site with interactive content at http://www.braintech.com. If you haven't seen it, we think you should.

We hope that you are as excited about the future of Braintech as we are. We're growing our company every day.

All the best,

Rick Weidinger
Chief Executive Officer
Braintech, Inc.

P.S. The 10-KSB for Q4 2007 is available online via the following link: http://secfilings.nasdaq.com/filingF... =

Disclaimer
Statements in this document that are not purely historical are forward-looking statements and reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technical difficulties in developing the products; competition from other suppliers of similar products; pricing that may not be acceptable to potential markets; and many other known and unknown factors. Readers should also refer to the risk disclosures outlined in the Company's 10-KSB and 10-QSB Forms filed from time to time with the SEC.

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Rick Weidinger
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