Esterline Subsidiary to Replace Physical Input Devices in Challenging Environments with “Soft” or Virtual Inputs Based Upon Canesta’s Electronic Perception Technology

COEUR D’ALENE, ID AND SAN JOSE, CA – JUNE 19, 2003 – Advanced Input Devices, a subsidiary of Esterline Technologies (NYSE:ESL), and Canesta, Inc., the leading provider of Electronic Perception Technology, have announced today that the two companies have signed an agreement that will allow Advanced Input Devices to bring Canesta’s revolutionary technology to a variety of important vertical markets. Under the terms of the agreement, Advanced Input Devices has obtained rights to develop unique input systems for its own markets, as well as resell Canesta electronic perception components. Canesta’s electronic perception technology is most widely known for its application in projection keyboards, where the image of a keyboard is projected by a tiny light source onto a convenient surface, and a Canesta perception chip in the same device senses the user’s finger movements in real time.

“There are a variety of applications that require sophisticated input methodologies, but need them to be indestructible, space-efficient, or configurable in ways that go beyond traditional techniques,” said Brad Lawrence, Advanced Input Devices president. “When we saw Canesta’s technology, we knew immediately that it could enhance the way many of the systems for our most important markets could be constructed.”

Advanced Input Devices is uniquely positioned to bring such technologies to market; over the last 25 years they have developed over 2000 sophisticated and custom input systems for more than 1000 companies. In the case of electronic perception technology, Lawrence believes that there are a wide variety of opportunities for customized input devices that can be generated – in effect – “out of thin air” in any configuration and for any environment. These would include, in particular industrial or environmentally hazardous venues where physical input devices are obtrusive, a source of contamination, require a high degree of customization, or need to be reconfigurable from user to user or application to application. Soft input devices, where the form and function of the device can be generated by software to numerous configurations in real time, can solve many of these problems, he said.

For example, in a medical environment, a Canesta projection keyboard could be used in place of physical keyboards that rapidly collect biological contaminants and require constant attention to maintain sterility, or replace CRT or LCD-based touchscreens that historically require frequent maintenance. The keyboard would be projected on an easily-cleaned, benign surface such as stainless steel.

In weight-or space-constrained military and aerospace environments, input devices could be projected into any convenient location, without weight, and requiring no space when not in use.

In retail, OEM, or point of sale applications, it would be possible to create vandal-proof, customized “keyboards” that don’t get dirty or take up space, or are instantly reconfigured to the language of the user.

In factories, hardware keyboards or other controls – even touchscreens – are frequently problematic, particularly in harsh environments. Canesta’s electronic perception technology would enable “touchless” screens, or even pure gestural inputs schemes, where the operator’s hand or finger motions in specific areas would be sensed and interpreted by the perception chips as actionable input.

For individuals with neurological or muscular disabilities, similar touchless or gestural input devices could provide assistance in the operation of appliances or even computer interfaces. “We believe that, over time, many applications will emerge that can dramatically leverage this technology,” added Chris Newman, Advanced Input Systems' vice president of sales and marketing. “Our goal is to put the most significant new technologies in front of our customers to keep them at the leading edge.”

Canesta’s president and CEO, Nazim Kareemi, is equally bullish about the relationship: “Advanced Input Devices has a proven ability to develop specialized input systems over a very large number of vertical markets, and has deep channel knowledge,” he said. “We look forward to working with them to fundamentally change the way devices and equipment interact with the world around them.”

Canesta’s electronic perception technology is the first practical technology that can follow objects in three-dimensions in real time. When built into electronic devices, the technology can follow fingers – as in a keyboard application, recognize faces – as in a security application, or assess volume or location of container contents – perhaps in a shipping application.

Canesta offers its technology in sets of low cost, small semiconductor chips that can be built into computers or machines cost-effectively, without taking up much space. The technology was first introduced in the spring of 2002. The company expects its first products based on this technology, the projection keyboard, to be available from Canesta customers later this year.

Advanced Input Devices expects its first electronic perception technology based products to be in the market in early 2004.

About Advanced Input Devices
Advanced Input Devices (www.advancedinputdevices.com) designs, develops, and manufactures standard and custom keyboards and input devices for the medical, electronic, and defense industries. Esterline (www.esterline.com) is a leading specialty manufacturer of highly engineered products servicing aerospace and defense markets.

About Canesta
Canesta is the inventor of a revolutionary, low-cost electronic perception technology that enables ordinary electronic devices to perceive and react to nearby objects or individuals in real time. When sight-enabled with Canesta's unique electronic perception chips and software, consumer, automotive, industrial, military, and medical products will gain functionality and ease of use not possible in an era when electronics were blind.

Canesta was founded in April 1999, and is located in San Jose, CA. The company has filed or has been granted in excess of forty patents. Investment to date exceeds $20 million, from Carlyle Venture Partners, Apax Partners (formerly Patricof & Co Ventures, Inc.), JP Morgan Partners (formerly Chase Capital Partners), TechFund Capital, and Thales Corporate Ventures (formerly Thomson-CSF Ventures). Canesta has over 40 employees.

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