**PRESS RELEASE**
For Immediate Release
July 20, 2006

Label Vision Systems, Inc. and the RoHS-Directive

Corporate statement on the implementation of the requirements of the RoHS-Drirective concerning the use of certain hazardous substances. As per July 1st, 2006, the European Union’s Directive 2002/95/EC on the restriction of the use of certain hazardous substances (RoHS-Directive) will become effective.  The RoHS Directive restricts the use of lead, mercury, cadmium, hexavalent chromium, and flame-retardants polyubrominated biphenyls (PBB) and polybrominated diphenyl ethers (PBDE) in new electrical and electronic equipment.

As part of its ongoing effort and challenge to develop, manufacture and sell products that cause as little possible burden to the environment, LVS has proactively eliminated many of the substances that are restricted under the RoHS Directive. Dedicated sustainability and environment policies accompany and emphasize LVS commitment to the society and to our future.

Since the announcement of the RoHS Directive in 2002, LVS has further increased these efforts and created awareness among all of its management and employees about the new requirements. We have informed all our suppliers of the requirements under the RoHS Directive and ordered them to assure that all the products and components they supply to LVS will be compliant with the RoHS Directive. Concurrently we have searched for and identified substitutes for parts that contain substances restricted under the RoHS Directive.

We are carrying out every necessary redesign of parts and sub-assemblies in order to eliminate the restricted substances. As a consequence LVS hereby can state that any product that LVS will sell to its customers after July 1st, 2006, will fully comply with the provisions of the RoHS Directive. Any product that LVS will sell after July 1st, 2006 will either not contain any hazardous substances prohibited under the RoHS Directive or not contain prohibited substances exceeding the permitted levels, or be exempted under the RoHS Directive.

Timothy F. Lydell
Chief Executive Officer
(800) 432-9430 (+1 770-487-6414)