Here we used magnetoencephalography (MEG) to investigate stages of processing in face perception in humans. We found a face-selective MEG response occurring only 100 ms after stimulus onset (the 'M100'), 70 ms earlier than previously reported. Further, the amplitude of this M100 response was correlated with successful categorization of stimuli as faces, but not with successful recognition of individual faces, whereas the previously-described face-selective 'M170' response was correlated with both processes. These data suggest that face processing proceeds through two stages: an initial stage of face categorization, and a later stage at which the identity of the individual face is extracted.