# Exhibit 99







CyberOptics Reports Solid Third Quarter Operating Results



Minneapolis, MNOctober 25,
2006CyberOptics Corporation (Nasdaq: CYBE) today reported operating results for the third quarter of
2006 ended September 30:



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        Consolidated sales totaled $14,075,000, an increase of 36% from $10,339,000 in the year-earlier period but down modestly from $14,551,000 in this years second quarter.




§
        Operating income came to $1,767,000, up significantly from $553,000 in last years third quarter but down from $2,469,000 in the second quarter of 2006.




§
        Net income came to
$1,745,000 or $0.19 per diluted share, which included $0.01 per diluted share of stock compensation expense and a $232,000 or
approximately $0.02 per diluted share income tax benefit related to the reduction in the accrual for prior years income taxes. As a
result, the 2006 third quarter effective rate was 25%, compared to our effective tax rate of 24% in the comparable 2005 period.
Our ongoing effective tax rate for 2006, excluding the discrete item described above, is anticipated to be 35%. Third quarter net
income was up significantly from $626,000 or $0.07 per diluted share in the year-earlier period, but down from $1,907,000 or $0.21
per diluted share in this years second quarter.




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        CyberOptics ended the third quarter of 2006 with cash and marketable securities of $49,664,000 up from $48,584,000 at the end of this years second quarter and $41,140,000 at the end of 2005.




Kathleen P. Iverson, president and chief executive
officer, commented: Our third quarter operating results, which were largely consistent with our previously issued guidance,
were driven by robust sales of SMT inspection systems, which, as anticipated, rebounded strongly from this years second
quarter level. Asian memory manufacturers generated strong demand for our SE 300 solder paste inspection systems and our new Flex
Ultra automated optical inspection (AOI) system throughout the third quarter. We have booked Flex Ultra orders of $4.5 million
since this system was introduced late in this years first quarter, making this one of our most successful product launches
in recent years.



Iverson continued: Looking ahead, we believe
sales of inspection systems should continue at robust levels in the fourth quarter. However, consolidated sales for this period
will be affected by some near-term softness in orders for our electronic assembly sensors. Since we believe the electronic
assembly market remains relatively strong, we do not anticipate an extended order slowdown for our SMT sensors at this time. Given
these factors, we are anticipating earnings of $0.08 to $0.11 per diluted share on sales of $12.0 to $13.0 million for the fourth
quarter ending December 31. This guidance incorporates stock compensation expenses of approximately $0.01 per diluted share, an
effective income tax rate of approximately 35%, and also a higher level of R&D investment in our solder paste and AOI
inspection systems.



Steven K. Case, Ph.D., chairman and founder, added:
The robust demand for our solder paste and AOI systems has reinforced our belief that the inspection systems portion of our
business should be one of CyberOptics primary growth drivers over the next few years. Due to the ongoing miniaturization of
SMT circuit board components, which is required for downsizing electronic

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products, automated inspection has become the only
viable means for inspecting SMT circuit boards populated with components that are virtually invisible to the human eye. To keep
pace with this unrelenting technological trend, we are continuing to upgrade our SE 300 and Flex Ultra systems with advances in
line speed and resolution, enabling these products to rapidly inspect the smallest circuit board components now in use. These
improvements demonstrate how component miniaturization is playing directly into CyberOptics strengths, which makes us very
optimistic about the future of our inspection systems business.



Third quarter order bookings totaled $12,822,000,
compared to $14,165,000 in this years second quarter. As a result, CyberOptics ended the third quarter with an order backlog
of $6,552,000 compared to $7,805,000 at the beginning of this period. Our backlog at the end of the third quarter of 2005 was
$4,012,000.



About CyberOptics

Founded in 1984, CyberOptics is a recognized leader in
process yield and through-put improvement solutions for the global electronic assembly and semiconductor capital equipment
markets. Headquartered in Minneapolis, Minnesota, CyberOptics conducts operations in North America, Asia and Europe.



Statements
regarding the Companys anticipated performance are forward-looking and therefore involve risks and uncertainties, including
but not limited to: market conditions in the global SMT and semiconductor capital equipment industries; the level of orders from
our OEM customers; the availability of parts required for meeting customer orders; the effect of world events on our sales, the
majority of which are from foreign customers; product introductions and pricing by our competitors; and other factors set forth in
the Companys filings with the Securities and Exchange Commission.



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For additional information, contact:

Jeffrey A. Bertelsen, Chief Financial Officer

763/542-5000



Richard G. Cinquina

Equity Market Partners

904/415-1415



Third Quarter Conference Call and Replay

CyberOptics will review its third quarter operating
results in a conference call at 4:30 pm Eastern today. Investors can access a live webcast of the conference call by visiting the
investor relations section of the CyberOptics website, www.cyberoptics.com. The webcast will be archived for 30 days. A replay of
the conference call can be heard through November 1, 2006 by dialing 303-590-3000 and providing the 11073228 confirmation code.











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# CyberOptics Corporation

|Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts) | Three Months Ended Sept. 30, |  | Nine Months Ended Sept. 30,
|------------------------------------------------------------------------------------------ | ---------------------------- |  | ---------------------------
|
|                                                                                          
|Revenue                                                                                    |                              |  | $                          
|Cost of revenue                                                                            |                              |  |                            
|                                                                                          
|Gross margin                                                                               |                              |  |                            
|Research and development expenses                                                          |                              |  |                            
|Selling, general and administrative expenses                                               |                              |  |                            
|Amortization of intangibles                                                                |                              |  |                            
|                                                                                          
|Income from operations                                                                     |                              |  |                            
|Interest income and other                                                                  |                              |  |                            
|                                                                                          
|Income before income taxes                                                                 |                              |  |                            
|Provision for income taxes                                                                 |                              |  |                            
|                                                                                          
|Net income                                                                                 |                              |  | $                          
|                                                                                          
|Net income per share  Basic                                                               |                              |  | $                          
|Net income per share  Diluted                                                             |                              |  | $                          
|                                                                                          
|Weighted average shares outstanding  Basic                                                |                              |  |                            
|Weighted average shares outstanding  Diluted                                              |                              |  |                            
|                                                                                          

# Condensed Consolidated Balance Sheets (unaudited)

|                                           | Sept. 30, 2006(Unaudited) |  | Dec. 31, 2005
|------------------------------------------ | ------------------------- |  | -------------
|                                          
|Assets                                     |                           |  |              
|Cash and cash equivalents                  |                           |  | $            
|Marketable securities                      |                           |  |              
|Accounts receivable, net                   |                           |  |              
|Inventories                                |                           |  |              
|Other current assets                       |                           |  |              
|Deferred tax sssets                        |                           |  |              
|                                          
|Total current assets                       |                           |  |              
|                                          
|Marketable securities                      |                           |  |              
|Intangible and other assets, net           |                           |  |              
|Fixed assets, net                          |                           |  |              
|Deferred tax assets                        |                           |  |              
|                                          
|Total assets                               |                           |  | $            
|                                          
|                                          
|Liabilities and Stockholders Equity       |                           | 
|Accounts payable                           |                           |  | $            
|Accrued expenses                           |                           |  |              
|                                          
|Total current liabilities                  |                           |  |              
|                                          
|                                          
|Total stockholders equity                 |                           |  |              
|                                          
|Total liabilities and stockholders' equity |                           |  | $            
|                                          
|                                          
|Backlog Schedule:                          |                           | 
|                                          
|4th Quarter 2006                           |                           |  |              
|1st Quarter 2007 and thereafter            |                           |  |              
|                                          
|Total backlog                              |                           |  |              
|                                          

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