Exhibit 99.1

Keith Bair, Senior Vice President and CFO

keith.bair@FARO.com, 407-333-9911

FARO Reports Second Quarter Results

LAKE MARY, FL., July 29, 2009 – FARO Technologies, Inc. (NASDAQ: FARO) today announced results for the second quarter ended July 4, 2009. Net loss for the second quarter was $2.1 million, or $0.13 per diluted share, a decrease of $8.5 million, compared to net income of $6.4 million, or $0.38 per diluted share, in the second quarter of 2008.

Sales for the second quarter of 2009 decreased $23.1 million, or 40.2%, to $34.6 million from $57.7 million in the second quarter of 2008. New order bookings for the second quarter were $35.4 million, a decrease of $23.3 million, or 39.7%, compared with $58.7 million in the second quarter of 2008.

“The global recession continued to adversely affect customers in the markets we serve. As a result, our second quarter orders and sales declined substantially year-over-year,” stated Jay Freeland, FARO’s President and CEO. “Customers have significantly reduced their budgets for capital expenditures and financing remains difficult for them to arrange. In light of the current economic conditions, they continue to be exceptionally cautious. However, we are maintaining our strong share of the market and our pipeline for new orders remains robust, as leads and demos continue to grow. New sales initiatives and programs like the FARO Test Drive have had some success in bringing deals to closure, which enabled sequential sales growth of 9.8% over the first quarter of 2009. However, we continue to believe that market conditions will remain weak at least through the end of this year.”

Gross margin for the second quarter of 2009 was 56.1%, compared to 62.8% in the second quarter of 2008. Gross margin decreased primarily due to a change in the sales mix between higher margin product sales and lower margin service revenue.

Selling expenses as a percentage of sales increased to 35.1% in the second quarter of 2009 from 29.6% in the second quarter of 2008, primarily as a result of the decline in sales. Selling expenses in the second quarter of 2009 decreased by $5.0 million to $12.1 million.

General and administrative expenses increased to 17.8% of sales for the second quarter of 2009 from 12.1% in the second quarter of 2008. General and administrative expenses in the second quarter of 2009 decreased by $0.9 million to $6.1 million.

R&D expenses were $3.3 million in the second quarter of 2009, an increase from $3.2 million in the second quarter of 2008. R&D expenses were 9.5% of sales in the second quarter of 2009 compared to 5.5% of sales in the second quarter of 2008.

The operating loss for the second quarter of 2009 was $3.6 million, a decrease of $11.5 million from an operating profit of $7.9 million in the second quarter of 2008.

Income tax expense decreased by $2.1 million to a benefit of $0.6 million for the second quarter of 2009, from an expense of $1.5 million for the second quarter of 2008 due to a decrease in pretax income. The Company’s effective tax rate increased to 22.2% for the second quarter of 2009 from 19.3% in the second quarter of 2008.

“The cost actions we took in the first quarter provided significant savings in Q2, and we believe they will continue to yield benefits for the duration of the year. In the second quarter of 2009, we also implemented cost containment measures that we expect to yield an additional $1 million in savings in the second half of the year. Although we continue to focus on generating sales to improve our current performance, we also intend to remain diligent in adjusting the cost structure of the Company to align with sales revenue and volumes,” Mr. Freeland concluded.

This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are subject to risks and uncertainties, such as statements about the future state of the economy, FARO’s focus, plans and strategies, its ability to further reduce operating costs, and its future financial condition. Statements that are not historical facts or that describe the Company’s plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as “intend,” “believe,” “will,” “expect” and similar expressions or discussions of our strategy or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.

Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to:

• development by others of new or improved products, processes or technologies that make the Company’s products obsolete or less competitive;

• the cyclical nature of the industries of our customers and material adverse changes in customers’ access to liquidity and capital;

• further declines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other general economic, business, and financing conditions;

• fluctuations in the Company’s annual and quarterly operating results and the inability to achieve its financial operating targets;

• risks associated with expanding international operations, such as fluctuations in currency exchange rates, difficulties in staffing and managing foreign operations, political and economic instability, compliance with import and export regulations, and the burdens and potential exposure of complying with a wide variety of U.S. and foreign laws and labor practices;

• other risks detailed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.

Forward-looking statements in this release represent the Company’s judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

About FARO

With approximately 20,000 installations and 9,500 customers globally, FARO Technologies, Inc. designs, develops, and markets portable, computerized measurement devices and software used to create digital models — or to perform evaluations against an existing model — for anything requiring highly detailed 3-D measurements, including part and assembly inspection, factory planning and asset documentation, as well as specialized applications ranging from surveying, recreating accident sites and crime scenes to digitally preserving historical sites.

FARO’s technology increases productivity by dramatically reducing the amount of on-site measuring time, and the various industry-specific software packages enable users to process and present their results quickly and more effectively.

Principal products include the world’s best-selling portable measurement arm — the FaroArm; the world’s best-selling laser tracker — the FARO Laser Tracker X and Xi; the FARO Laser ScanArm; FARO Photon Laser Scanners; the FARO Gage, Gage-PLUS and PowerGAGE; and the CAM2 Q family of advanced CAD-based measurement and reporting software. FARO Technologies is ISO-9001 certified and ISO-17025 laboratory registered.

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FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended						Six Months Ended
(in thousands, except share and per share data)	July 4, 2009			June 28, 2008			July 4, 2009			June 28, 2008
SALES
Product	$	27,203		$	50,591		$	51,416		$	89,918
Service		7,313			7,158			14,548			13,921
Total Sales		34,516			57,749			65,964			103,839
COST OF SALES
Product		10,259			16,044			19,386			29,580
Service		4,893			5,466			10,955			10,314
Total Cost of Sales (exclusive of depreciation and amortization, shown separately below)		15,152			21,510			30,341			39,894
GROSS PROFIT		19,364			36,239			35,623			63,945
OPERATING EXPENSES:
Selling		12,128			17,076			24,952			31,504
General and administrative		6,134			7,014			12,433			12,660
Depreciation and amortization		1,389			1,120			2,680			2,135
Research and development		3,285			3,172			6,764			5,885
Total operating expenses		22,936			28,382			46,829			52,184
(LOSS) INCOME FROM OPERATIONS		(3,572	)		7,857			(11,206	)		11,761
OTHER (INCOME) EXPENSE
Interest income		(36	)		(456	)		(194	)		(1,077	)
Other (income) expense, net		(837	)		419			(176	)		182
Interest expense		4			7			6			448
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE		(2,703	)		7,887			(10,842	)		12,208
INCOME TAX (BENEFIT) EXPENSE		(599	)		1,522			(2,153	)		2,465
NET (LOSS) INCOME	$	(2,104	)	$	6,365		$	(8,689	)	$	9,743
NET (LOSS) INCOME PER SHARE - BASIC	$	(0.13	)	$	0.38		$	(0.53	)	$	0.59
NET (LOSS) INCOME PER SHARE - DILUTED	$	(0.13	)	$	0.38		$	(0.53	)	$	0.58
Weighted average shares - Basic		16,069,312			16,627,540			16,408,259			16,618,333
Weighted average shares - Diluted		16,069,312			16,784,473			16,408,259			16,758,363

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)	July 4, 2009			December 31, 2008
	Unaudited
ASSETS
Current Assets:
Cash and cash equivalents	$	26,790		$	23,494
Short-term investments		64,973			81,965
Accounts receivable, net		32,901			49,713
Inventories		29,580			33,444
Deferred income taxes, net		6,278			5,581
Prepaid expenses and other current assets		10,291			7,879
Total current assets		170,813			202,076
Property and Equipment:
Machinery and equipment		19,043			22,685
Furniture and fixtures		5,142			4,099
Leasehold improvements		9,217			3,956
Property and equipment at cost		33,402			30,740
Less: accumulated depreciation and amortization		(18,509	)		(16,604	)
Property and equipment, net		14,893			14,136
Goodwill		19,198			18,951
Intangible assets, net		8,222			8,580
Service inventory		12,551			12,843
Deferred income taxes, net		1,856			2,728
Total Assets	$	227,533		$	259,314
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	4,471		$	10,813
Accrued liabilities		7,915			14,032
Income taxes payable		—			1,988
Current portion of unearned service revenues		11,675			11,501
Customer deposits		887			425
Current portion of obligations under capital leases		41			87
Total current liabilities		24,989			38,846
Unearned service revenues - less current portion		5,882			6,772
Deferred tax liability, net		1,114			1,107
Obligations under capital leases - less current portion		266			281
Total Liabilities		32,251			47,006
Shareholders’ Equity:
Common stock - par value $.001, 50,000,000 shares authorized; 16,785,058 and 16,741,488 issued; 16,083,730 and 16,658,552 outstanding, respectively		17			17
Additional paid-in-capital		150,662			149,298
Retained earnings		48,809			57,497
Accumulated other comprehensive income		4,869			5,742
Common stock in treasury, at cost - 680,235 and 55,808 shares		(9,075	)		(246	)
Total Shareholders’ Equity		195,282			212,308
Total Liabilities and Shareholders’ Equity	$	227,533		$	259,314

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended
(in thousands)	July 4, 2009			June 28, 2008
CASH FLOWS FROM:
OPERATING ACTIVITIES:
Net (loss) income	$	(8,689	)	$	9,743
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization		2,680			2,135
Compensation for stock options and restricted stock units		1,201			1,060
Provision for bad debts		649			446
Deferred income tax expense		180			(1,329	)
Change in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable		16,208			4,049
Inventories		4,088			(8,856	)
Prepaid expenses and other current assets		(2,402	)		(1,877	)
Income tax benefit from exercise of stock options		—			(43	)
Increase (decrease) in:
Accounts payable and accrued liabilities		(12,451	)		(8,962	)
Income taxes payable		(1,990	)		(1,542	)
Customer deposits		462			186
Unearned service revenues		(688	)		1,957
Net cash used in operating activities		(752	)		(3,033	)
INVESTING ACTIVITIES:
Purchases of property and equipment		(2,663	)		(1,952	)
Payments for intangible assets		(291	)		(3,333	)
Purchases of short-term investments		(64,972	)		(37,125	)
Proceeds from sales of short-term investments		81,967			36,735
Net cash provided by (used in) investing activities		14,041			(5,675	)
FINANCING ACTIVITIES:
Payments on capital leases		(61	)		(81	)
Income tax benefit from exercise of stock options		—			43
Repurchases of common stock		(8,829	)
Proceeds from issuance of stock, net		—			80
Net cash (used in) provided by financing activities		(8,890	)		42
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(1,103	)		(375	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,296			(9,041	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		23,494			25,798
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	26,790		$	16,757