LogicVision Announces Preliminary Quarterly Results

San Jose, Calif., July 2, 2002 - LogicVision, Inc., (NASDAQ:LGVN), a leading provider of embedded test IP for integrated circuits and systems, today announced its preliminary results for the second quarter ended June 30, 2002.

The company expects that net revenues for the second quarter ended June 30, 2002 will be in the range of $3.5 million to $3.6 million with an estimated net loss between $1.9 million and $2.0 million, or ($0.13) to ($0.14) per share on a GAAP basis. On a pro forma basis, excluding deferred stock-based compensation, the company expects to have an estimated loss in the range of $1.5 million to $1.6 million, or ($0.10) to ($0.11) per share. LogicVision expects that its cash and marketable securities balance at the end of the quarter will be approximately $43 million.

Vinod Agarwal, President and Chief Executive Officer of LogicVision, said, "Revenues for the second quarter are below our expectations due to market weakness resulting in purchase deferrals by several of our customers. Our fundamental business and financial condition remains strong, with liquidity unchanged."

Investor Conference Call / Webcast Details

LogicVision will hold a conference call to discuss its preliminary results tomorrow morning, Wednesday, July 3rd at 11:00AM EST. The conference call-in number is 800-233-2795. A replay will be available from 2PM EST on July 3rd through midnight EST, July 10th. The replay number is 877-710-5302 (domestic) or 402-220-1605 (international). The confirmation identification is LOGIC1. The live call and replay will also be accessible over the web at www.logicvision.com .

The company will address actual second quarter results and provide guidance for the third quarter 2002 on July 22 at 5PM EST. The conference call-in number is 800-451-7724. A replay will be available from 8PM EST on July 22nd through midnight EST, July 29th. The replay number is 800-283-4642 (domestic) or 402-220-0857 (international). The confirmation identification is LOGIC. The live call and replay will also be accessible over the web at www.logicvision.com .

About LogicVision Inc.

LogicVision (NASDAQ: LGVN) provides proprietary technologies for embedded test that enable the more efficient design and manufacture of complex semiconductors. LogicVision's embedded test solution allows integrated circuit designers to embed into a semiconductor design test functionality that can be used during semiconductor production and throughout the useful life of the chip. LogicVision's embedded test products generate proprietary circuit structures that are incorporated into an integrated circuit to test and diagnose the chip at full speed, without the signal delay or degradation experienced by external testers. LogicVision's embedded test solution has been successfully deployed in complex semiconductors for gigabit switches, voice and data routers, high performance servers and wireless products. For more information on the company and its products, please visit the LogicVision Web site at www.logicvision.com.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the preliminary results for the quarter ended June 30, 2002, including net revenues, GAAP and pro forma net loss and cash and marketable securities balance, as well as market conditions and purchase deferrals by the Company's customers and the Company's business and financial condition, including liquidity, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially, including, but not limited to, the completion of the review of the Company's financial results for the quarter ended June 30, 2002, the timing of customer orders, trends in capital spending in the semiconductor industry, the impact of competitive products and alternative technological advances, and other risks detailed in LogicVision's Form 10-Q for the quarter ended March 31, 2002 and from time to time in LogicVision's SEC reports. These forward-looking statements speak only as of the date hereof. LogicVision disclaims any obligation to update these forward-looking statements.

LogicVision, Embedded Test and LogicVision logos are trademarks or registered trademarks of LogicVision Inc. in the United States and other countries. All other trademarks and service marks are the property of their respective owners.