Exhibit 99

# CyberOptics Reports
Improved Sequential Quarterly Sales and Earnings

Minneapolis, MNOctober 26,
2005CyberOptics Corporation (Nasdaq: CYBE) today reported consolidated revenues
of $10,339,000 for the third quarter of 2005 ended September 30, an increase of 23% from
$8,429,000 in this years second quarter. Net income rose to $626,000 or $0.07 per
diluted share in the third quarter from $202,000 or $0.02 per diluted share in the second
quarter. In the third quarter of 2004, which marked the last period before the onset of
significantly slower-growth market conditions, CyberOptics reported earnings of $3,624,000
or $0.40 per diluted share on revenues of $19,385,000.

Kathleen P. Iverson, president and
chief executive officer, commented: CyberOptics third quarter sales
and earnings were at the top end of our previously reported guidance for this
period. Our improved results were paced by a 28% quarterly sequential increase
in sales of electronic assembly sensors and a 26% quarterly sequential gain in
sales of inspection systems. Sales of semiconductor products were virtually
unchanged from the prior quarter. CyberOptics electronic assembly sensor
business benefited from increased revenue from both of our primary customers. In
addition, we made our first shipments of fiducial/inspection sensors developed
for DEK Internationals industry-leading line of solder paste screen
printers. The results of our inspection systems operation were driven by robust
sales of the higher-speed SE 300 Ultra solder paste inspection system that was
introduced late in this years second quarter. The majority of our Ultra
sales were generated by Asian original design manufacturers.

Iverson continued: Orders for
both existing and new products have increased following the close of the third quarter.
Coupled with our improved third quarter results, this heightened order activity makes us
believe that our markets are starting to strengthen. Although a full recovery of our
capital equipment markets typically lags that of the semiconductor sector, we are
encouraged about CyberOptics near-term prospects. For the fourth quarter of 2005
ending December 31, we are forecasting earnings of $0.08 to $0.12 per diluted share on
revenues of $11.0 to $12.0 million. Our earnings guidance reflects the impact of somewhat
higher operating expenses as we push forward with important R&D programs and other
growth-related initiatives.

Steven K. Case, Ph.D., chairman and
founder, said, During the third quarter, we sold our first EPV 5 sensors for
retrofitting the existing pick-and-place installations of a major manufacturer. Our
program for integrating CyberOptics EPV technology into a new robotic placement
platform of Universal Instruments Corporation has been placed on hold. CyberOptics and
Universal have mutually agreed to review the EPV initiative within six months to a year.
In the meantime, we intend to continue development efforts on our EPV technology and
pursue new OEM customers.

Case added: In addition to the
SE 300 Ultra and EPV 5, we also made initial production level shipments of the new
fiducial/inspection cameras developed for DEK Internationals industry-leading line
of SMT solder paste screen printers. We also realized increased sales of our
WaferSenseauto leveling sensor, a wireless, wafer-like device that significantly
reduces the amount of time required for making leveling and coplanarity adjustments during
the semiconductor manufacturing process. We believe all of these new products should
position CyberOptics to maximize opportunities during the next material upturn in our
global capital equipment markets.

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CyberOptics continued to carry a full
valuation allowance on deferred tax assets during the first nine months of 2005, and
recorded a tax provision at an estimated annual effective rate of 24%. CyberOptics will
assess maintaining or eliminating its valuation allowance on deferred tax assets on a
quarterly basis, and if reversed, a significant non-cash gain would be recorded.

CyberOptics ended the third quarter
of 2005 with cash and marketable securities of $39,529,000, compared to $42,358,000 at the
end of the prior quarter. The decline in the quarter-ending cash balance was due to the
increase in accounts receivable resulting from the sequential increase in revenue and the
timing of collections.

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.

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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
800/522-1744

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# 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 2, 2005 by dialing 303-590-3000 and
providing the 11042196 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,
|------------------------------------------------------------------------------------------ | ---------------------------- |  | ---------------------------
|                                                                                           | 2005                         |  | 2004                       
|                                                                                          
|Revenue                                                                                    |                              |  | $                          
|Cost of revenue                                                                            |                              |  |                            
|                                                                                          
|Gross margin                                                                               |                              |  |                            
|Research and development expenses                                                          |                              |  |                            
|Selling, general and administrative expenses                                               |                              |  |                            
|Restructuring and severance costs                                                          |                              |  |                            
|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

|                                           | Sept. 30, 2005
(Unaudited) |  | Dec. 31, 2004
|------------------------------------------ | -------------------------- |  | -------------
|                                           |                           
|Assets                                     |                            |  |              
|Cash and cash equivalents                  |                            |  | $            
|Marketable securities                      |                            |  |              
|Accounts receivable, net                   |                            |  |              
|Inventories                                |                            |  |              
|Income tax receivable                      |                            |  |              
|Other current assets                       |                            |  |              
|                                           |                           
|Total current assets                       |                            |  |              
|Marketable securities                      |                            |  |              
|Intangible and other assets, net           |                            |  |              
|Fixed assets, net                          |                            |  |              
|                                           |                           
|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 2005                           |                            |  |              
|1st Quarter 2006 and thereafter            |                            |  |              
|                                           |                           
|Total backlog                              |                            |  |              
|                                           |                           

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