CyberOptics Reports Strong First Quarter Operating Results

With Increased Orders and Backlog

Minneapolis, MNApril 26,
2006CyberOptics Corporation (Nasdaq: CYBE) today reported significantly
improved and above-expectation sales, operating income and net income as well as an
increased order backlog for the first quarter of 2006 ended March 31.

| |  | Consolidated sales totaled $14,718,000, an increase of 21% from
$12,122,000 in the fourth quarter of 2005 and also up 30% from $11,289,000 in
the first quarter of 2005. First quarter sales exceeded the previously-issued
guidance for this period.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Operating income came to $1,842,000, an increase of 52% from
$1,212,000 in the fourth quarter of 2005 and 40% from $1,313,000 in last
years first quarter.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Net income, based on an effective income tax rate of 35%, came to
$1,456,000 or $0.16 per diluted share, which also exceeded the financial
guidance for this period. First quarter earnings were reduced by approximately
$0.02 per diluted share of stock compensation expenses. Earnings in the fourth
quarter of 2005 were $5,202,000 or $0.58 per diluted share, which included a
non-cash income tax benefit of $3,672,000 from the reduction of the valuation
allowance on deferred tax assets. As a result of this reduction, pre-tax earnings
started being fully taxed in this years first quarter. Earnings in the
first quarter of 2005 came to $1,120,000 or $0.12 per diluted share, which were
taxed at an effective rate of 24%.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Kathleen P. Iverson, president and
chief executive officer, commented: The sequential and year-over-year improvements
in CyberOptics first quarter operating results were generated by growing customer demand
across all of our product lines. We benefited from increased sales of electronic assembly
sensors to both of our primary OEM customers, in addition to DEK International, which has
embedded our fiducial/inspection camera into its industry-leading line of solder paste
screen printers. Our inspection systems operation continued to benefit from strong sales
of the SE 300 Ultra solder paste inspection system, particularly to many of Asias
largest original design manufacturers. During the quarter, we also made initial shipments
of the next-generation Flex Ultra automated optical inspection system, which was
introduced earlier in the first quarter. In addition, sales of semiconductor products
were higher. First quarter order bookings rose to $16,008,000, from $15,011,000 in last
years fourth quarter. As a result, we ended the first quarter with an order backlog
of $8,191,000, up 19% from $6,901,000 at the beginning of this period. Since the majority
of this backlog is scheduled to ship in the second quarter and given our positive outlook
for new orders, we believe the second quarter should be another good period for
CyberOptics.

Steven K. Case, Ph.D., chairman and
founder, added: The new products that we have introduced over the past year have
positioned CyberOptics to capitalize upon the strengthening conditions in our targeted
capital equipment markets. Consistent with our ongoing emphasis on R&D, development
is currently underway on a number of important next-generation sensor and system
products, which makes us optimistic about CyberOptics future.

CyberOptics ended the first quarter
of 2006 with cash and marketable securities of $43,547,000, up from $41,140,000
at the end of 2005 and $41,687,000 at the end of the first quarter of
2005.

CyberOptics is forecasting earnings
of $0.11 to $0.15 per diluted share on sales of $13.5 to $14.5 million for the second
quarter ending June 30. This guidance incorporates stock compensation expenses of
approximately $0.03 per diluted share.

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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 Officer763/542-5000

Richard G. CinquinaEquity Market Partners
904/415-1415

First Quarter Conference Call and Replay

CyberOptics will review its first 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 May 3, 2006 by dialing 303-590-3000 and providing the 11058548
confirmation code.

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# CyberOptics Corporation

Consolidated Statements
of Operations (Unaudited)

|Three Months Ended March 31,                 
|---------------------------------------------
|
|                                             
|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

|                                           |  | March 31, 2006 |   | Dec. 31, 2005
|------------------------------------------ |  | -------------- | - | -------------
|
|                                           | 
|Assets                                     |  |                |   |              
|Cash and cash equivalents                  |  |                | $ | 23,476       
|Marketable securities                      |  |                |   | 14,144       
|Accounts receivable, net                   |  |                |   | 11,117       
|Inventories                                |  |                |   | 8,275        
|Other current assets                       |  |                |   | 899          
|Deferred tax assets                        |  |                |   | 1,942        
|                                           | 
|Total current assets                       |  |                |   | 59,853       
|Marketable securities                      |  |                |   | 5,927        
|Intangible and other assets, net           |  |                |   | 6,399        
|Fixed assets, net                          |  |                |   | 1,573        
|Deferred tax assets                        |  |                |   | 3,763        
|                                           | 
|Total assets                               |  |                | $ | 77,515       
|                                           | 
|Liabilities and Stockholders Equity       |  |               
|Accounts payable                           |  |                | $ | 3,508        
|Accrued expenses                           |  |                |   | 5,465        
|                                           | 
|Total current liabilities                  |  |                |   | 8,973        
|                                           | 
|Total stockholders equity                 |  |                |   | 68,542       
|                                           | 
|Total liabilities and stockholders equity |  |                | $ | 77,515       
|                                           | 
|Backlog Schedule:                          |  |               
|                                          
|2nd Quarter 2006                           |  |                |   |             
|3rd Quarter 2006 and thereafter            |  |                |   |             
|                                           | 
|Total backlog                              |  |                |   |             
|                                           | 

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