News Release

BURLINGTON, Mass., July 25, 2007 – iRobot Corp. (NASDAQ: IRBT) today announced its financial results for the second fiscal quarter ended June 30, 2007.

“In Q2, we delivered our 12th consecutive quarter of year-over-year revenue growth,” said Colin Angle, chief executive officer of iRobot. “The increased acceptance of our robots and iRobot’s ability to effectively execute on its plans are key drivers behind the company’s success. Our financial performance in the first half of the year exceeded the revenue and pre-tax guidance we previously provided. These results, coupled with improved visibility for the year in our government business, give us a high level of confidence in exceeding our previously provided full-year fiscal 2007 financial guidance.”

Financial Highlights:

• Revenues for the second quarter of 2007 grew 36 percent to $47 million, compared with $34.6 million for the same quarter one year ago. Revenues for the first half increased 19 percent to $86.5 million from $72.8 million for the first half of 2006.


• Gross profit for the second quarter increased to $15.2 million (32.4 percent of sales), compared with $11.8 million (34.1 percent of sales) in the second quarter of 2006. First-half 2007 gross profit totaled $26.3 million (30.5 percent of sales) up from $24 million (32.9 percent of sales) in the first half of 2006.


• Stock-based compensation expenses were $1.5 million in the second quarter of 2007, which included a cumulative adjustment of $528,000, compared with $551,000 in the same quarter last year. For the first half of 2007, stock-based compensation expenses totaled $2.2 million, up from $1 million in the first half of 2006.


• Net loss in the second quarter of 2007 was $4.8 million compared with a net loss in the second quarter of 2006 of $1.8 million. Net loss in the first half of 2007 was $10.3 million compared with a 2006 first-half net loss of $4.7 million.

Business Highlights:

• iRobot signed a three-year agreement for a $35 million unsecured revolving line of credit and a one-year agreement for a $15 million secured equipment-financing facility. The new credit facilities replace a $20 million secured revolving credit agreement that was entered into in May 2005.


• iRobot announced a strategic alliance with TASER International, Inc. to deliver new capabilities on the combat proven iRobot® PackBot® robot for the military and law enforcement.


• iRobot received two delivery orders from the U.S. military totaling $17.5 million for PackBot robots. iRobot expects to complete delivery by the end of January 2008.


• iRobot has been working with retailers to prepare for the introduction of the next generation to its Roomba portfolio. Store inventories have been reduced as part of the plan and the company anticipates benefiting from channel fill in the second half of the year.

Financial Guidance

“The current trends in our business give us confidence that our revenues and pre-tax earnings results are likely to exceed our previous guidance,” said Geoff Clear, chief financial officer of iRobot. “Therefore, for full year fiscal 2007, our new revenue guidance is $233 million to $243 million and our new pre-tax income guidance is $3 million to $5 million.”

Second-Quarter Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. ET to discuss its financial results for the second fiscal quarter ended June 30, business outlook and outlook for future financial performance. To access the call, investors should dial 913-981-4903 approximately 10 minutes prior to the initiation of the teleconference and reference iRobot. A live, audio broadcast of the conference call also will be available at http://investors.irobot.com/events.cfm. An archived version of the broadcast will be available on the same Web site shortly after the conclusion of the live event. A replay of the telephone conference call will be available through midnight on Aug. 2, and can be accessed by dialing 719-457-0820, access code 4256386.

About iRobot Corp.
iRobot is a provider of robots that perform dull, dirty or dangerous missions in a better way. The company's proprietary technology, iRobot AWARE Robot Intelligence Systems, incorporates advanced concepts in navigation, mobility, manipulation and artificial intelligence. This proprietary system enables iRobot to build behavior-based robots, including its family of consumer and military robots. For additional information about iRobot, please visit www.irobot.com.

For iRobot Investors
Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, iRobot Corp.’s expectations concerning future financial performance, investments in and expansion of its business, product development, product introduction and marketing plans, and demand for and market acceptance of its products. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: our ability to operate in an emerging market, fluctuations in our operating results and the seasonality of our business, our ability to enhance our current consumer robots or develop new consumer robots, our dependence on the U.S. federal government and government contracts, our ability to expand our product offering beyond our current markets, market acceptance of our products, our ability to manage our rapid growth, changes in government policies or spending priorities. and competition. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. iRobot Corp. undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by iRobot Corp., see the disclosure contained in our public filings with the Securities and Exchange Commission.