<SUBMISSION>
<ACCESSION-NUMBER>0001047469-03-032142
<TYPE>SC TO-I
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20030930
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>RCM TECHNOLOGIES INC
<CIK>0000700841
<ASSIGNED-SIC>7363
<IRS-NUMBER>951480559
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC TO-I
<ACT>34
<FILE-NUMBER>005-38320
<FILM-NUMBER>03918083
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2500 MCCLELLAN AVE STE 350
<CITY>PENNSAUKEN
<STATE>NJ
<ZIP>08109
<PHONE>6094861777
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2500 MCCLELLAN AVENUE
<STREET2>STE 350
<CITY>PENNSAUKEN
<STATE>NJ
<ZIP>08109-4613
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>RCM TECHNOLOGIES INC
<CIK>0000700841
<ASSIGNED-SIC>7363
<IRS-NUMBER>951480559
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC TO-I
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2500 MCCLELLAN AVE STE 350
<CITY>PENNSAUKEN
<STATE>NJ
<ZIP>08109
<PHONE>6094861777
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2500 MCCLELLAN AVENUE
<STREET2>STE 350
<CITY>PENNSAUKEN
<STATE>NJ
<ZIP>08109-4613
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC TO-I
<SEQUENCE>1
<FILENAME>a2119563zscto-i.htm
<DESCRIPTION>SC TOI
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03PHI1337_1">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<HR NOSHADE>
<HR NOSHADE>
<P ALIGN="CENTER"><FONT SIZE=4><B>SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=4><B>SCHEDULE TO<BR>  </B></FONT><FONT SIZE=4><B>(Rule 13e-4)<BR>  </B></FONT><FONT SIZE=2><B>Tender Offer Statement Under Section 14(d)(1) or 13(e)(1)<BR>
of the Securities Exchange Act of 1934  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=4><B>RCM TECHNOLOGIES, INC.<BR>  </B></FONT><FONT SIZE=2>(Name of Subject Company (Issuer) and Filing Person (Offeror)) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>Certain Outstanding Options to Purchase RCM Technologies, Inc. Common Stock, Par Value $0.05 Per Share<BR>  </B></FONT><FONT SIZE=2>(Title of Class of Securities) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>749360400<BR>  </B></FONT><FONT SIZE=2>(CUSIP Number of Class of Securities of Underlying Options to Purchase Common Stock) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>Leon Kopyt<BR>
President and Chief Executive Officer<BR>
RCM Technologies, Inc.<BR>
2500 McClellan Avenue, Suite 350<BR>
Pennsauken, New Jersey 08109-4613<BR>
(856) 486-1777<BR>  </B></FONT><FONT SIZE=2>(Name, address and telephone number of person authorized to receive notices and communications on behalf of filing person) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2>Copy
to:<BR></FONT> <FONT SIZE=2><B>Richard A. Silfen, Esq.<BR>
Morgan, Lewis &amp; Bockius LLP<BR>
1701 Market Street<BR>
Philadelphia, PA 19103-2921<BR>
(215) 963-5000  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> CALCULATION OF FILING FEE  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="63%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="48%" ALIGN="CENTER"><FONT SIZE=1><B>Transaction Valuation*</B></FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="48%" ALIGN="CENTER"><FONT SIZE=1><B>Amount of Filing Fee</B></FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="48%" ALIGN="CENTER"><FONT SIZE=2>$5,228,630.97</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="48%" ALIGN="CENTER"><FONT SIZE=2>$423</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>Calculated
solely for purposes of determining the filing fee. This amount assumes that options to purchase 1,328,273 shares of common stock of RCM Technologies, Inc. will be exchanged
for (i) 607,945 shares of common stock of RCM Technologies, Inc. having an aggregate value of $3,130,916.75 (based on the September 26, 2003 closing price per share) and (ii) cash consideration of
$2,097,714.22. The aggregate value of such options was calculated based on the Black-Scholes option pricing model. The amount of the filing fee, calculated in accordance with Rules 0-11(b) and
0-11(a)(4) and Section 13(e) of the Securities Exchange Act of 1934, as amended, equals $80.90 for each $1 million of the value of the transaction.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Check
box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. </FONT></DD></DL>
<BR>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>Amount Previously Paid:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="71%"><FONT SIZE=2>Not applicable.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>Form or Registration No.:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="71%"><FONT SIZE=2>Not applicable.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>Filing party:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="71%"><FONT SIZE=2>Not applicable.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>Date filed:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="71%"><FONT SIZE=2>Not applicable.</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Check
box if the filing relates solely to preliminary communications made before the commencement of a tender offer. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate boxes below to designate any transactions to which the statement relates: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>third
party tender offer subject to Rule 14d-1. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></DT><DD><FONT SIZE=2>issuer
tender offer subject to Rule 13e-4. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>going-private
transaction subject to Rule 13e-3. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>amendment
to Schedule 13D under Rule 13d-2. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the following box if the filing is a final amendment reporting the results of the tender offer:&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>

<HR NOSHADE>
<HR NOSHADE>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=456603,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]BA1337A.;9',USER='DSELIGM',CD='30-SEP-2003;12:01' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_de1337_1_2"> </A> </FONT></P>

<!-- TOC_END -->

<P><FONT SIZE=2><A
NAME="de1337_item_1._summary_term_sheet."> </A>
<A NAME="toc_de1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;1. Summary Term Sheet.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth under the caption "Summary Term Sheet" in the Offer to Exchange Certain Outstanding Option Grants for Stock Grants and Cash
Consideration, dated September&nbsp;30, 2003 ("Offer to Exchange"), a copy of which is attached hereto as Exhibit&nbsp;(a)(1), is incorporated herein by reference. </FONT></P>


<P><FONT SIZE=2><A
NAME="de1337_item_2._subject_company_information."> </A>
<A NAME="toc_de1337_2"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;2. Subject Company Information.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Name and Address.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
name of the issuer is RCM Technologies,&nbsp;Inc., a Nevada corporation. The address of the Company's principal executive office is 2500&nbsp;McClellan Avenue, Suite&nbsp;350,
Pennsauken, New Jersey 08109-4613 and the telephone number at that address is (856)&nbsp;486-1777. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Securities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
subject class of securities consists of old option grants, outstanding as of September&nbsp;30, 2003, to purchase approximately 1,328,273 shares of RCM common stock, par value
$0.05&nbsp;per share, which have a per share exercise price of $7.00 or higher, which are held by RCM's employees or directors under the RCM Technologies,&nbsp;Inc. 1992 Incentive Stock Option
Plan, the RCM Technologies,&nbsp;Inc. 1994 Nonemployee Director Stock Option Plan, the Amended and Restated RCM Technologies,&nbsp;Inc. 1996 Executive Stock Plan, and the RCM
Technologies,&nbsp;Inc. 2000 Employee Stock Incentive Plan (the "Eligible Options"), and which are held by our employees subject to the tax laws of the United States and Canada. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
actual number of shares of common stock subject to the new grant to be issued in exchange for the old option grants pursuant to the offer will depend on the number of shares of
common stock subject to the old option grants tendered by eligible employees and accepted for exchange and cancelled by RCM in the offer. The information set forth in the Offer to Exchange under the
captions "The Offer&#151;Eligibility," "The Offer&#151;Terms of Exchange; Expiration Time," "The Offer&#151;Acceptance of Old Grants; Issuance of Stock Grants and Payment of Cash
Consideration" is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Trading Market and Price.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Price Range of Our Common Stock" is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_3._identity_and_background_of_filing_person."> </A>
<A NAME="toc_de1337_3"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;3. Identity and Background of Filing Person.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Name and Address.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
filing person is the issuer. The information set forth under Item&nbsp;2(a) above is incorporated by reference. Pursuant to General Instruction&nbsp;C of Schedule&nbsp;TO, the
information set forth in Schedule&nbsp;B to the Offer to Exchange is incorporated herein by reference. </FONT></P>


<P><FONT SIZE=2><A
NAME="de1337_item_4._terms_of_the_transaction."> </A>
<A NAME="toc_de1337_4"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;4. Terms of the Transaction.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Material Terms.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the captions "Summary Term Sheet," "The Offer&#151;Eligibility," "The Offer&#151;Terms of Exchange; Expiration
Time," "The Offer&#151;Procedures for Tendering Old Grants; Change of Election," "The Offer&#151;Withdrawal Rights; Change of Decision to Withdraw; Withdrawal After the Expiration Time,"
"The Offer&#151;Acceptance of Old Grants; Issuance of Stock Grants and Payment of Cash Consideration," "The Offer&#151;Source and Amount of Consideration; Terms of the Stock Grants and
Cash Consideration," "The Offer&#151;Accounting </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=2,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=230686,FOLIO='2',FILE='DISK005:[03PHI7.03PHI1337]DE1337A.;6',USER='LBURNET',CD='30-SEP-2003;12:01' -->
<A NAME="page_de1337_1_3"> </A>
<BR>

<P><FONT SIZE=2>Consequences
of the Offer," "The Offer&#151;Status of Old Grants Acquired in the Offer," "The Offer&#151;Extension of the Offer; Termination; Amendment; Notice of Extension, Termination
or Amendment" and "The Offer&#151;Material U.S. Federal Income Tax Consequences" is incorporated herein by reference. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Purchases.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors
or executive officers of RCM are eligible to participate in the offer. The information set forth in the Offer to Exchange under the caption "The Offer&#151;Interests of
Directors and Officers; Transactions and Arrangements Concerning the Old Grants" is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_5._past_contacts,_transac__ite02476"> </A>
<A NAME="toc_de1337_5"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;5. Past Contacts, Transactions, Negotiations and Arrangements.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Agreements Involving the Subject Company's Securities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Interests of Directors and Officers; Transactions and Arrangements Concerning the Old Grants"
is incorporated herein by reference. The employee, director and executive stock option plans pursuant to which the old option grants have been issued are attached hereto as Exhibit&nbsp;(d)(1),
Exhibit&nbsp;(d)(2), Exhibit&nbsp;(d)(3) and Exhibit&nbsp;(d)(4) and contain information regarding the subject securities. </FONT></P>


<P><FONT SIZE=2><A
NAME="de1337_item_6._purposes_of_the__de102334"> </A>
<A NAME="toc_de1337_6"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;6. Purposes of the Transaction and Plans or Proposals.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Purposes.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Purpose of the Offer" is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Use of Securities Acquired.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Status of Old Grants Acquired in the Offer" is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Plans.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_7._source_and_amou__de102256"> </A>
<A NAME="toc_de1337_7"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;7. Source and Amount of Funds or Other Consideration.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Source of Funds.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Source and Amount of Consideration; Terms of the Stock Grants and Cash Consideration" is
incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Conditions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Borrowed Funds.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_8._interest_in_sec__de102102"> </A>
<A NAME="toc_de1337_8"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;8. Interest in Securities of the Subject Company.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Securities Ownership.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Interests of Directors and Officers; Transactions and Arrangements Concerning the Old Grants"
is incorporated herein by reference. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=3,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=671119,FOLIO='3',FILE='DISK005:[03PHI7.03PHI1337]DE1337A.;6',USER='LBURNET',CD='30-SEP-2003;12:01' -->
<A NAME="page_de1337_1_4"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Securities Transactions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Interests of Directors and Officers; Transactions and Arrangements Concerning the Old Grants"
is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_9._person/assets,_retaine__ite02187"> </A>
<A NAME="toc_de1337_9"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;9. Person/Assets, Retained, Employed, Compensated or Used.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Solicitations or Recommendations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_10._financial_statements."> </A>
<A NAME="toc_de1337_10"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;10. Financial Statements.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Financial Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Additional Information," "The Offer&#151;Financial Information" and "Schedule&nbsp;C:
Summary Financial Statements of RCM Technologies,&nbsp;Inc." is incorporated herein by reference. RCM's annual and quarterly reports filed with the Securities and Exchange Commission can be accessed
electronically on the Securities and Exchange Commission's website at http://www.sec.gov. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Pro Forma Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1337_item_11._additional_information."> </A>
<A NAME="toc_de1337_11"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;11. Additional Information.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Agreements, Regulatory Requirements and Legal Proceedings.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Offer to Exchange under the caption "The Offer&#151;Legal Matters; Regulatory Approvals" is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Other Material Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=4,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=703239,FOLIO='4',FILE='DISK005:[03PHI7.03PHI1337]DE1337A.;6',USER='LBURNET',CD='30-SEP-2003;12:01' -->
<A NAME="page_de1337_1_5"> </A>
<BR>

<P><FONT SIZE=2><A
NAME="de1337_item_12._exhibits."> </A>
<A NAME="toc_de1337_12"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;12. Exhibits.    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Offer to Exchange Certain Outstanding Option Grants for Stock Grants and Cash Consideration, dated September&nbsp;30, 2003</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(2)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
Letter from Leon Kopyt to RCM's option holders dated September&nbsp;30, 2003</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(3)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
Election Form</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(4)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
Notice to Withdraw From the Offer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(d)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(1)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
RCM Technologies,&nbsp;Inc. 1992 Incentive Stock Option Plan (incorporated by reference to Exhibit&nbsp;A of the Registrant's Proxy Statement dated April&nbsp;23, 1992, filed with the Commission on March&nbsp;9, 1992 and incorporated herein by
reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(2)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
RCM Technologies,&nbsp;Inc. 1994 Nonemployee Director Stock Option Plan (incorporated by reference to Exhibit&nbsp;A of the Registrant's Proxy Statement dated May&nbsp;19, 1994, filed with the Commission on June&nbsp;22, 1994 and incorporated herein
by reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(3)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
Amended and Restated RCM Technologies,&nbsp;Inc. 1996 Executive Stock Option Plan dated August&nbsp;15, 1996 (incorporated by reference to Exhibit&nbsp;10(1) to the Registrant's Annual Report on Form&nbsp;10-K for the year ended October&nbsp;31, 1996
and incorporated herein by reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(4)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
RCM Technologies,&nbsp;Inc. 2000 Employee Stock Incentive Plan (incorporated by reference to Exhibit&nbsp;A of the Registrant's Proxy Statement dated March&nbsp;3, 2000, filed with the Commission on February&nbsp;28, 2000 and incorporated herein by
reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(5)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2><BR>
Form of Share Award Agreement (included as Schedule&nbsp;A to Exhibit&nbsp;(a)(1) and incorporated herein by reference)</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><A
NAME="de1337_item_13._information_required_by_schedule_13e-3."> </A>
<A NAME="toc_de1337_13"> </A>
<BR></FONT><FONT SIZE=2><B>Item&nbsp;13. Information Required by Schedule&nbsp;13E-3.    <BR>    </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Not
applicable. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=5,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=1047034,FOLIO='5',FILE='DISK005:[03PHI7.03PHI1337]DE1337A.;6',USER='LBURNET',CD='30-SEP-2003;12:01' -->
<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_jc1337_1_6"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="jc1337_signature"> </A>
<A NAME="toc_jc1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Schedule&nbsp;TO is true, complete and correct. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><B>RCM TECHNOLOGIES,&nbsp;INC.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%"><BR><FONT SIZE=2>STANTON REMER</FONT><HR NOSHADE><FONT SIZE=2> Stanton Remer<BR></FONT> <FONT SIZE=2><I>Chief Financial Officer</I></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
Date: September&nbsp;30, 2003</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=6,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=953486,FOLIO='6',FILE='DISK005:[03PHI7.03PHI1337]JC1337A.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1337_index_to_exhibits"> </A>
<A NAME="toc_ka1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>INDEX TO EXHIBITS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="CENTER"><FONT SIZE=1><B>Exhibit<BR>
Number</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="87%" ALIGN="CENTER"><FONT SIZE=1><B>Description</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Offer to Exchange Certain Outstanding Option Grants for Stock Grants and Cash Consideration, dated September&nbsp;30, 2003</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(2)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Letter from Leon Kopyt to RCM's option holders dated September&nbsp;30, 2003</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(3)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Election Form</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(4)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Notice to Withdraw From the Offer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(d)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(1)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
RCM Technologies,&nbsp;Inc. 1992 Incentive Stock Option Plan (incorporated by reference to Exhibit&nbsp;A of the Registrant's Proxy Statement dated April&nbsp;23, 1992, filed with the Commission on March&nbsp;9, 1992 and incorporated herein by
reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(2)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
RCM Technologies,&nbsp;Inc. 1994 Nonemployee Director Stock Option Plan (incorporated by reference to Exhibit&nbsp;A of the Registrant's Proxy Statement dated May&nbsp;19, 1994, filed with the Commission on June&nbsp;22, 1994 and incorporated herein
by reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(3)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Amended and Restated RCM Technologies,&nbsp;Inc. 1996 Executive Stock Option Plan dated August&nbsp;15, 1996 (incorporated by reference to Exhibit&nbsp;10(1) to the Registrant's Annual Report on Form&nbsp;10-K for the year ended October&nbsp;31, 1996
and incorporated herein by reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(4)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
RCM Technologies,&nbsp;Inc. 2000 Employee Stock Incentive Plan (incorporated by reference to Exhibit&nbsp;A of the Registrant's Proxy Statement dated March&nbsp;3, 2000, filed with the Commission on February&nbsp;28, 2000 and incorporated herein by
reference)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(5)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Form of Share Award Agreement (included as Schedule&nbsp;A to Exhibit&nbsp;(a)(1) and incorporated herein by reference)</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=7,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1",CHK=284119,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]KA1337A.;15',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03PHI1337_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_de1337_1">Item 1. Summary Term Sheet.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_2">Item 2. Subject Company Information.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_3">Item 3. Identity and Background of Filing Person.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_4">Item 4. Terms of the Transaction.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_5">Item 5. Past Contacts, Transactions, Negotiations and Arrangements.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_6">Item 6. Purposes of the Transaction and Plans or Proposals.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_7">Item 7. Source and Amount of Funds or Other Consideration.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_8">Item 8. Interest in Securities of the Subject Company.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_9">Item 9. Person/Assets, Retained, Employed, Compensated or Used.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_10">Item 10. Financial Statements.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_11">Item 11. Additional Information.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_12">Item 12. Exhibits.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1337_13">Item 13. Information Required by Schedule 13E-3.</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_jc1337_1">SIGNATURE</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ka1337_1">INDEX TO EXHIBITS</A></FONT><BR>
<!-- SEQ=,FILE='QUICKLINK',USER=MBARTAS,SEQ=,EFW="2119563",CP="RCM TECHNOLOGIES",DN="1" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)
<SEQUENCE>3
<FILENAME>a2119563zex-99_a1.htm
<DESCRIPTION>EXHIBIT 99(A)(1)
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03PHI1337_2">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kg1337_exhibit_99(a)(1)"> </A>
<A NAME="toc_kg1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 99(a)(1)    <BR>    </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=3><B><I>OFFER TO EXCHANGE CERTAIN OUTSTANDING OPTION GRANTS  </I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B><I> FOR STOCK GRANTS AND CASH CONSIDERATION  </I></B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">

<P><FONT SIZE=3><B><I>&nbsp;&nbsp;<BR>  </I></B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=3><B><I> RCM TECHNOLOGIES, INC.  </I></B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS SUPPLEMENT CONSTITUTES PART OF THE SECTION 10(a) PROSPECTUS RELATING TO THE RCM TECHNOLOGIES, INC. 2000 EMPLOYEE STOCK INCENTIVE PLAN </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>September
30, 2003 </FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=523069,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]KG1337A.;4',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ki1337_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1337_table_of_contents"> </A>
<A NAME="toc_ki1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="18%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER"><FONT SIZE=1><B>Page</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>SUMMARY TERM SHEET</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>QUESTIONS AND ANSWERS ABOUT THE OFFER</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>CERTAIN RISKS OF PARTICIPATING IN THE OFFER</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>THE OFFER</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 1.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Eligibility</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 2.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Terms of Exchange; Expiration Time</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 3.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Purpose of the Offer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 4.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Procedures for Tendering Old Grants; Change of Election</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 5.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Withdrawal Rights; Change of Decision to Withdraw; Withdrawal After the Expiration Time</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 6.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Acceptance of Old Grants; Issuance of Stock Grants and Payment of Cash Consideration</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 7.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Conditions to the Offer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 8.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Price Range of Our Common Stock</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 9.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Source and Amount of Consideration; Terms of the Stock Grants and Cash Consideration</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 10.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Information Concerning RCM; Information About the Offer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 11.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Interests of Directors and Officers; Transactions and Arrangements Concerning the Old Grants</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 12.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Status of Old Grants Acquired in the Offer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 13.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Accounting Consequences of the Offer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 14.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Legal Matters; Regulatory Approvals</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 15.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Extension of the Offer; Termination; Amendment; Notice of Extension, Termination or Amendment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 16.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Fees and Expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>29</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 17.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Additional Information</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>29</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 18.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Financial Information</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 19.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Forward-Looking Statements; Miscellaneous</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 20.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Material U.S. Federal Income Tax Consequences</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>31</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>Section 21.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Material Income Tax Consequences and Certain Other Considerations for Employees Who Are Tax Residents of Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>32</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>SCHEDULE&nbsp;A</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Form of Share Award Agreement</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>A-1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>SCHEDULE&nbsp;B</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Information Concerning the Executive Officers and Directors of RCM Technologies, Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>B-1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=2>SCHEDULE&nbsp;C</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="72%"><FONT SIZE=2>Summary Financial Statements of RCM Technologies, Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" VALIGN="BOTTOM"><FONT SIZE=2>C-1</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>i</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=2,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=782411,FOLIO='i',FILE='DISK005:[03PHI7.03PHI1337]KI1337A.;6',USER='MBARTAS',CD='30-SEP-2003;15:27' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kk1337_rcm_technologies,_inc."> </A>
<A NAME="toc_kk1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>RCM TECHNOLOGIES, INC.    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B><I>Offer to Exchange Outstanding Unexercised Option Grants Under the RCM Technologies,&nbsp;Inc. 1992 Incentive Stock Option Plan, the RCM
Technologies,&nbsp;Inc. 1994 Nonemployee Director Stock Option Plan, the Amended and Restated RCM Technologies,&nbsp;Inc. 1996 Executive Stock Plan, and the RCM Technologies,&nbsp;Inc. 2000
Employee Stock Incentive Plan (collectively, the "Stock Plans") Having an Exercise Price of $7.00 Per Share or Higher for Stock and Cash Consideration  </I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I> <A NAME="kk1337_summary_term_sheet"> </A>
<A NAME="toc_kk1337_2"> </A>
<BR>    </I></B></FONT><FONT SIZE=2><B>SUMMARY TERM SHEET    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B><I>The offer and withdrawal rights will expire at <U>5:00</U>&nbsp;p.m., Eastern time, November&nbsp;13, 2003,
unless the offer is extended.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following explains the material terms of our offer to exchange: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>We
are offering eligible employees and directors the opportunity to exchange outstanding unexercised RCM option grants under the Stock Plans with per share exercise prices
of $7.00 or higher (the "Old Grants") for shares of our common stock (the "Stock Grants") and cash consideration (the "Cash Consideration"). (See Section&nbsp;1, Section&nbsp;2 and
Section&nbsp;6).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>We
are implementing the offer because a considerable number of our employees and directors have stock options that have exercise prices significantly above our current and
recent trading prices. We believe that the offer will provide renewed incentives to our employees and directors and more closely align the interests of our employees and directors with the interests
of our stockholders. We are offering this program on a voluntary basis to allow our employees and directors to choose whether to keep their current stock options at their current exercise prices, or
to cancel those options in exchange for shares of our common stock and cash. (See Section&nbsp;3).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
offer is scheduled to remain open until 5:00&nbsp;p.m., Eastern time, November&nbsp;13, 2003, unless we decide to extend that expiration time. Therefore, to
participate in the offer, you must tender your Old Grants to us prior to that expiration time. We plan to cancel properly tendered options on the first business day following the expiration time which
we anticipate will be November&nbsp;14, 2003. (See Section&nbsp;2, Section&nbsp;4 and Section&nbsp;15).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>We
will issue Stock Grants and pay Cash Consideration in exchange for Old Grants properly tendered by eligible employees and directors in the offer; the Stock Grants will be
effective, and the Cash Consideration will become payable, on the date that we cancel the Old Grants, which we anticipate to be November&nbsp;14, 2003 (the "Stock Grant Date"). We will distribute
the share award agreements evidencing the Stock Grants, substantially in the form included in this Offer to Exchange as Schedule A, and the Cash Consideration promptly after the expiration time of the
offer. (See Section&nbsp;6).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
will not be required to pay cash for the shares subject to the Stock Grants issued to you. Instead, your consideration for the shares subject to the Stock Grants and the
Cash Consideration you receive will be the Old Grants you tender. (See Section&nbsp;2 and Section&nbsp;6).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>If
you have multiple stock option grants that qualify as Old Grants and you wish to tender the options subject to those grants, you must tender each individual option in its
entirety. For each Old Grant you exchange, you will receive a number of shares of our common stock that is determined based on the Black-Scholes valuation of such Old Grants. This valuation takes into
account the exercise price of the Old Grant being exchanged, the remaining term of the Old Grant and the current market value of our shares. The number of shares you will receive will equal 150% of
the Black-Scholes valuation of your Old Grant. (See Section&nbsp;2, Section&nbsp;4 and Section&nbsp;9).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Shares
issued pursuant to Stock Grants will be fully vested on the Stock Grant Date, but those shares will not be transferable immediately. The transfer restriction will
lapse (i)&nbsp;on the first anniversary of the Stock Grant Date or (ii)&nbsp;earlier if we experience a change in control, subject </FONT></DD></DL>
</UL>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=3,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=442632,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]KK1337A.;7',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_kk1337_1_2"> </A>
<UL>
<UL>

<P><FONT SIZE=2>to
any subsequent applicable securities restrictions and our policies regarding restrictions on the sale of shares of our common stock. (See Section&nbsp;9). </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Cash Consideration that you receive will equal the aggregate fair market value of the number of shares subject to your Stock Grant on the Stock Grant Date multiplied by
0.67. The Cash Consideration will not be included in any determination of your compensation for purposes of our benefit plans. (See Section&nbsp;9).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Cash Consideration is a cash payment by us to you that is intended to offset a portion of your income taxes that result from your receipt of the Stock Grants and the
Cash Consideration. The payment of the Cash Consideration is designed to be cash flow neutral for us assuming that we will be able to claim tax deductions related to the Stock Grants issued and the
Cash Consideration paid in the offer and that we have taxable income to offset against those deductions in the applicable tax periods. (See Section&nbsp;9).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>If
you are an employee, the Cash Consideration will be paid to you only if our withholding obligation for your tax liability for the Stock Grants and the Cash Consideration
is less than the Cash Consideration that is payable to you. In such an event, you will only receive the portion of the Cash Consideration that exceeds our withholding obligation. In the event the Cash
Consideration does not fully satisfy the withholding obligation, you will be required to make a cash payment to us for the additional amount. If you are a non-employee member of our Board of
Directors, the Cash Consideration will be paid directly to you. (See Section&nbsp;6).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>All
of our employees and directors who are active as of the date on which we commence the offer and the Stock Grant Date are eligible to participate in the offer. (See
Section&nbsp;1).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>To
receive a Stock Grant and Cash Consideration in the offer, participating eligible employees and directors </FONT><FONT SIZE=2><I>must </I></FONT><FONT SIZE=2>be employed
by or providing service to us on the Stock Grant Date. (See Section&nbsp;1).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may withdraw from the offer any time prior to the expiration time. (See Section&nbsp;5).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Stock Grants will be issued under the RCM Technologies, Inc. 2000 Employee Stock Incentive Plan. No Stock Grants will be issued under the RCM Technologies,&nbsp;Inc.
1992 Incentive Stock Option Plan, the RCM Technologies, Inc. 1994 Nonemployee Director Stock Option Plan or the Amended and Restated RCM Technologies,&nbsp;Inc. 1996 Executive Stock Plan. (See
Section&nbsp;9 and Section&nbsp;12).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Cash Consideration will be paid out of our working capital. (See Section&nbsp;9).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
are reminded that, unless expressly provided in your employment agreement or by the applicable laws of a non-U.S. jurisdiction, your employment with us remains "at-will"
and can be terminated by you or us at any time, with or without cause or notice and the offer does not impact your "at-will" employment status.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
decision to participate in the offer is completely voluntary. Your decision to participate or not participate in the offer will have no impact on your employment status
with us. (See Section&nbsp;2).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>As
described in more detail in this Offer to Exchange, the issuance of the Stock Grants and payment of Cash Consideration to you will result in your recognition of taxable
income; however, the Cash Consideration will cover a portion of your taxes that result from your receipt of the Stock Grants and the Cash Consideration. The amount of our withholding obligation will
be withheld from the Cash Consideration that is payable to you. (See Section&nbsp;6, Section&nbsp;9, Section&nbsp;20 and Section&nbsp;21). </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=4,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=762823,FOLIO='2',FILE='DISK005:[03PHI7.03PHI1337]KK1337A.;7',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_kk1337_1_3"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
terms of the offer are summarized in this "Summary Term Sheet" document. Also, this Offer to Exchange includes questions and answers about the offer, a description of
certain risks of participating in the offer and the details of the offer itself. We urge you to read this Offer to Exchange carefully and in its entirety. This offer is subject to the terms and
conditions described in this document.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>ALTHOUGH
OUR BOARD OF DIRECTORS HAS APPROVED THE OFFER, NEITHER WE NOR OUR BOARD OF DIRECTORS MAKES ANY RECOMMENDATION AS TO WHETHER YOU SHOULD EXCHANGE OR REFRAIN FROM
EXCHANGING YOUR OLD GRANTS. YOU MUST MAKE YOUR OWN DECISION WHETHER TO EXCHANGE YOUR OLD GRANTS.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>We
have not authorized any person to make a recommendation on our behalf as to whether you should elect to exchange or refrain from exchanging your options pursuant to the
offer. You should rely only on the information contained in this document or to which we have referred you. We have not authorized anyone to give you any information or to make any representations in
connection with the offer other than the information and representations contained in this document. If anyone makes any recommendation or representation to you or gives you any information, you must
not rely upon that recommendation, representation or information as having been authorized by us. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common stock is traded on The Nasdaq National Market under the symbol "RCMT." On September&nbsp;26, 2003, the closing price of our common stock reported on The Nasdaq National
Market was $5.15 per share. We recommend that you obtain current market quotations for our common stock before deciding whether to exchange your options. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>For important details about the offer, you should read the rest of this Offer to Exchange, including the sections entitled "Questions and Answers about the
Offer," "Certain Risks of Participating in the Offer" and "The Offer."  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Neither this Offer to Exchange nor the Stock Grants has been approved or disapproved by the United States Securities and Exchange
Commission (the "SEC") or any state or foreign securities commission and neither the SEC nor any state or foreign securities commission has passed upon the accuracy or adequacy of the information
contained in this Offer to Exchange. Any representation to the contrary is a criminal offense.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=5,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=552716,FOLIO='3',FILE='DISK005:[03PHI7.03PHI1337]KK1337A.;7',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_km1337_1_4"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="km1337_questions_and_answers_about_the_offer"> </A>
<A NAME="toc_km1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>QUESTIONS AND ANSWERS ABOUT THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary answers some of the questions that you may have about the offer. We urge you to read carefully this entire Offer to Exchange, the
accompanying letter from Leon Kopyt, our Chief Executive Officer, dated September&nbsp;30, 2003, the Election Form and the Notice to Withdraw from the Offer (the "Offer Documents"). The information
in this summary is not complete, and additional important information is contained in the Offer Documents. We have included in this summary references to the Sections of this Offer to Exchange where
you can find a more complete description of the topics in this summary. </FONT></P>


<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What is the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This voluntary offer provides our eligible employees and directors with the one-time opportunity to exchange outstanding unexercised options under the RCM
Technologies,&nbsp;Inc. 1992 Incentive Stock Option Plan (the "1992 Plan"), the RCM Technologies,&nbsp;Inc. 1994 Nonemployee Director Stock Option Plan (the "1994 Plan"), the Amended and Restated
RCM Technologies,&nbsp;Inc. 1996 Executive Stock Plan (the "1996 Plan"), and the RCM Technologies,&nbsp;Inc. 2000 Employee Stock Incentive Plan (the "2000 Plan," and together with the 1992 Plan,
the 1994 Plan and the 1996 Plan, the "Stock Plans") granted by us with per share exercise prices equal to or greater than $7.00 (the "Old Grants") for shares of our common stock (the "Stock Grants")
plus a cash payment (the "Cash Consideration"). Stock Grants will be issued under the 2000 Plan. No Stock Grants will be made under the 1992 Plan, 1994 Plan or 1996 Plan. The Cash Consideration will
be paid out of our working capital. We refer to the date on which the Stock Grants become effective and the Cash Consideration becomes payable as the "Stock Grant Date." You will not be required to
pay any cash consideration for the Stock Grants, but the shares subject to the Stock Grants will not be transferable for the one year period after the Stock Grant Date, unless we experience a change
in control prior to such date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to and in accordance with the offer, we will accept and cancel all Old Grants that are properly tendered and not withdrawn prior to the expiration time of the offer, which is
scheduled to be 5:00&nbsp;p.m., Eastern time, November&nbsp;13, 2003. The Stock Grants will be effective, and the Cash Consideration will become payable, on the date we cancel the Old Grants,
which, assuming the offer expires on November&nbsp;13, 2003, we anticipate to be November&nbsp;14, 2003. (See Section&nbsp;1, Section&nbsp;2 and Section&nbsp;6). </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Why have I been provided with this Offer to Exchange and other documents?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of the offer are set forth in this Offer to Exchange, the accompanying letter from Leon Kopyt, our Chief Executive Officer, dated
September&nbsp;30, 2003, the Election Form and the Notice to Withdraw from the Offer. These documents describe the terms of the offer and are intended to enable you to make an informed decision
about whether to tender any of your Old Grants. Also, we are required by the federal securities laws to provide you with the information contained in this Offer to Exchange. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
urge you to carefully read this Offer to Exchange, paying particular attention to the risks and tax consequences of the offer to you, and the other Offer Documents before you make
your decision about participation in the offer. </FONT></P>

<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What is the purpose of the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of our outstanding options under the Stock Plans have exercise prices that are significantly higher than the current and recent market price of our common
stock. We believe many of those options are unlikely to be exercised in the foreseeable future. We believe that the offer, by providing an immediate ownership interest in us and a cash payment to
offset a portion of the taxes that result from such ownership, will help us demonstrate our commitment to our employees and directors and, </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=6,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=297117,FOLIO='4',FILE='DISK005:[03PHI7.03PHI1337]KM1337A.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_5"> </A>
<BR>

<P><FONT SIZE=2>therefore,
our future success and growth by improving our ability to retain and motivate our employees and directors. The ownership interest will provide our employees and directors with an additional
incentive to maximize stockholder value. (See Section&nbsp;3). </FONT></P>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Who is eligible to participate in the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each employee and director who holds stock options issued under the Stock Plans with a per share exercise price equal to or greater than $7.00 is eligible to
participate in the offer if that person is an active employee or director of ours or one of our subsidiaries as of the date on which the offer commences and the Stock Grant Date. (See
Section&nbsp;1). </FONT></P>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Are employees in Canada eligible to participate?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes. Our employees who currently are subject to the tax laws of Canada are eligible to participate in the offer. Please be aware that if you live, work or are
otherwise a tax resident of Canada, the offer may have special rules or restrictions that apply to you. Please be sure to read the appropriate Section of this Offer to Exchange that deals with special
rules and the tax consequences in Canada. (See Section&nbsp;1 and Section&nbsp;21). </FONT></P>

<P><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What happens if, after I tender my Old Grants, I cease to be an employee or board member of RCM?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you cease to be our employee or board member for any reason prior to the expiration of the offer, your participation in the offer will be automatically
cancelled and you will not receive the Stock Grants or Cash Consideration. In this case, your Old Grants will be treated as if they had not been tendered, and your Old Grants will remain outstanding
in accordance with their existing terms and conditions. (See Section&nbsp;1). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you are our employee or board member upon the expiration of this Offer, once your tendered Old Grants have been accepted and cancelled by us, your Stock Grants and Cash Consideration
will not be subject to forfeiture for any reason, even if you later cease to be our employee or board member, but the shares subject to the Stock Grants will continue to remain subject to the transfer
restrictions. (See Section&nbsp;2, Section&nbsp;6 and Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Are there any eligibility requirements that I must satisfy after the expiration time of the offer to receive the Stock Grants and Cash Consideration?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To receive Stock Grants and Cash Consideration in the offer, you must be employed by or providing services to us or one of our subsidiaries as of the Stock Grant
Date, which we expect will be no sooner than November&nbsp;14, 2003. If, for any reason, you do not remain an active employee or director of ours or one of our subsidiaries through the Stock Grant
Date, you will not receive any Stock Grants, the Cash Consideration or any other consideration in exchange for your tendered Old Grants. You are reminded that, unless expressly provided in your
employment agreement or by the applicable laws of a non-U.S. jurisdiction, your employment or service with us remains "at-will" and can be terminated by you or us at any time, with or without cause or
notice and the offer does not in any way impact your "at-will" employment status. You should note that your decision to participate in the offer is completely voluntary. Your decision to participate
or not participate in the offer will have no impact on your employment status with us. (See Section&nbsp;1). </FONT></P>

<P><FONT SIZE=2><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Am I required to tender any of my Old Grants?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are not required to tender any of your Old Grants. (See Section&nbsp;2). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=7,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=996830,FOLIO='5',FILE='DISK005:[03PHI7.03PHI1337]KM1337A.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_6"> </A>
<BR>

<P><FONT SIZE=2><B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Am I required to exchange all of my Old Grants or can I just exchange some of them?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the offer, you are not required to exchange all of your Old Grants. However, if you have multiple stock option grants that qualify as Old Grants
and you wish to exchange the options subject to such grants, you must tender each individual option in its entirety. (See Section&nbsp;2 and Section&nbsp;4). </FONT></P>

<P><FONT SIZE=2><B>10.&nbsp;&nbsp;&nbsp;May I tender options that I have already exercised?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This offer only pertains to stock options and does not apply in any way to shares purchased upon the exercise of stock options. To the extent you have exercised a
stock option, that option is no longer outstanding and is therefore not subject to the offer. (See Section&nbsp;4). </FONT></P>


<P><FONT SIZE=2><B>11.&nbsp;&nbsp;&nbsp;What are the Stock Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unlike your Old Grants, which were stock options that provided you with the right to purchase shares of our common stock at a specified exercise price, when you
receive the Stock Grants, you will become a holder of actual shares of our common stock and you will not be required to pay any cash consideration to receive these shares. The shares subject to your
Stock Grants will not be subject to any forfeiture restrictions; however, these shares will be subject to a restriction on your ability to transfer the shares until the applicable restrictions lapse.
The transfer restrictions will be set forth in a share award agreement, substantially in the form included in this Offer to Exchange as Schedule&nbsp;A, entered into between you and us. The transfer
restrictions will lapse (i)&nbsp;on the first anniversary of the Stock Grant Date or (ii)&nbsp;earlier if we experience a change in control, subject to any subsequent applicable securities
restrictions and our policies regarding restrictions on the sale of shares of our common stock; in either case, regardless of whether you are employed by, or providing service to, us on such date.
Once the transfer restrictions on the shares have lapsed, those shares will be yours to transfer or sell as you desire, subject to applicable securities laws and our policies regarding restrictions on
the sale of shares of our common stock. (See Section&nbsp;2 and Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>12.&nbsp;&nbsp;&nbsp;How many shares will be issuable to me pursuant to Stock Grants that I receive in exchange for my tendered Old Grants?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Along with the Offer Documents, we have provided to you an individualized statement of the number of shares of our common stock that will be issuable to you
pursuant to a Stock Grant if you exchange any of your Old Grants in the offer. We determined the number of shares underlying the Stock Grants pursuant to exchange ratios that are described in the
answer to Question 13 below. (See Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>13.&nbsp;&nbsp;&nbsp;If I choose to participate in the offer, how are the number of shares that I am entitled to receive determined?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We structured the offer to strike a balance between the interests of our stockholders and our employees and directors. For each Old Grant that you exchange, you
will receive a number of shares of our common stock that is determined based on the Black-Scholes valuation of such Old Grant. Such valuation takes into account the exercise price of the option being
exchanged, the remaining term of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=8,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=754248,FOLIO='6',FILE='DISK005:[03PHI7.03PHI1337]KM1337A.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_7"> </A>
<BR>

<P><FONT SIZE=2>the
option and the current market value of our shares. The number of shares you will receive will equal 150% of the Black-Scholes valuation of your Old Grant. The applicable exchange ratios follow: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="14%" ALIGN="CENTER"><FONT SIZE=1><B>Date of Grant<BR>
of Old Grant</B></FONT><HR NOSHADE></TH>
<TH WIDTH="7%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="CENTER"><FONT SIZE=1><B>Expiration Date<BR>
of Old Grant</B></FONT><HR NOSHADE></TH>
<TH WIDTH="7%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Exercise Price Per Share<BR>
for Old Grant</B></FONT><HR NOSHADE></TH>
<TH WIDTH="7%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="23%" ALIGN="CENTER"><FONT SIZE=1><B>Exchange Ratio&nbsp;: Old<BR>
Grant to Stock Grant*</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>11/06/1998</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>11/03/2008</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>15.31</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.70:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>11/01/1998</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>11/01/2008</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>15.06</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.66:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>03/08/2000</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>03/08/2010</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>14.88</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.01:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>10/02/1998</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>10/02/2008</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>14.13</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.57:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>05/18/1999</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>05/18/2009</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>14.00</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.23:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>04/04/2000</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>04/04/2010</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>11.93</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>1.73:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>06/17/1999</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>06/17/2009</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>11.50</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>1.91:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>10/08/1998</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>10/08/2008</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>11.25</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.12:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>10/06/1999</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>10/06/2009</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>10.19</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>1.68:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>06/20/1997</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>06/20/2007</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>10.13</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.62:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>11/01/1997</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>11/01/2007</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>10.13</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.39:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>03/20/1996</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>03/20/2006</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>8.13</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>3.04:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>11/21/1996</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>11/21/2006</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="24%" ALIGN="RIGHT"><FONT SIZE=2>7.13</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.16:1</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>The
exchange ratios as presented have been rounded to two decimal places. The exchange ratios used to determine the actual number of shares that you will receive if you choose to tender
any Old Grants will not be rounded. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will not issue any fractional shares in connection with the offer. We will round up or down to the nearest whole share in determining the number of shares to be issued to each option
holder. All shares
issued in connection with the offer will be issued under the 2000 Plan. The shares issued in connection with the offer will be subject to the terms and conditions of the 2000 Plan and a share award
agreement, substantially in the form included in this Offer to Exchange as Schedule&nbsp;A, between you and us. (See Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation
in the offer is completely voluntary. Please review each of your Old Grants, as you may decide to accept or reject the offer as to each outstanding individual grant or you
may decide not to participate at all. You may decide to exchange some of your Old Grants, all of your Old Grants or none of your Old Grants. It is your decision. If you choose not to participate, you
will retain your current options under their current terms and conditions. We recommend that you speak with your personal financial advisor to weigh the benefits and risks involved in participating in
the offer. (See Section&nbsp;2 and Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>14.&nbsp;&nbsp;&nbsp;Will the Stock Grants ever expire?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares subject to the Stock Grants do not need to be "exercised." Accordingly, unlike options, the shares subject to the Stock Grants do not expire. As a result,
subject to the transfer restrictions, you will own the shares issued as the Stock Grants outright, and, after the transfer restrictions cease to apply, you will be free to transfer or sell your shares
as you desire, subject to applicable securities laws and our policies regarding restrictions on the sale of shares of our common stock. (See Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>15.&nbsp;&nbsp;&nbsp;What are the restrictions on the shares subject to the Stock Grants?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares subject to the Stock Grants issued to you will not be immediately transferable. The transfer restrictions will lapse (i)&nbsp;on the first
anniversary of the Stock Grant Date or (ii)&nbsp;earlier if we experience a change in control, subject to any subsequent applicable securities restrictions and our policies regarding restrictions on
the sale of shares of our common stock. If you die prior to the date </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=9,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=539042,FOLIO='7',FILE='DISK005:[03PHI7.03PHI1337]KM1337A.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_8"> </A>
<BR>

<P><FONT SIZE=2>on
which the transfer restrictions lapse, the Stock Grants will be transferred to your estate and continue to be subject to the applicable transfer restrictions. (See Section&nbsp;2 and
Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>16.&nbsp;&nbsp;&nbsp;Am I entitled to exercise any rights of ownership of the shares issued in connection with the Stock Grants prior to the lapsing of the transfer restrictions?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will have dividend, voting and all other stockholder rights with respect to any shares you receive in the offer as of the date we issue the Stock Grants to
you, except that the shares will be subject to
transfer restrictions. The shares issued hereunder may not be transferred to any brokerage account until the transfer restrictions for the shares have lapsed. In addition, we will deliver to you, by
mail or otherwise, all notices of meetings, proxy statements, proxies and other materials distributed to our stockholders. However, you will not be eligible to participate in any dividend reinvestment
plan with respect to any shares you receive in the offer until the transfer restrictions with respect to those shares have lapsed. (See Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>17.&nbsp;&nbsp;&nbsp;Under what circumstances will I forfeit the shares subject to the Stock Grants I receive in the exchange?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares subject to your Stock Grants are not subject to forfeiture under any circumstances. (See Section&nbsp;2 and Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>18.&nbsp;&nbsp;&nbsp;What is the Cash Consideration?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Cash Consideration is a cash payment by us to you that is intended to offset a portion of your income taxes that result from your receipt of the Stock Grants
and the Cash Consideration. The Cash Consideration is designed to be cash flow neutral for us assuming that we will be able to claim tax deductions related to the Stock Grants issued and the Cash
Consideration paid in the offer and that we have taxable income to offset against those deductions in the applicable tax periods. The Cash Consideration will become payable on the same day that the
Stock Grants are effective. However, if you are an employee of ours, we will withhold from the portion of the Cash Consideration that is payable to you an amount that is necessary for us to satisfy
our withholding obligation with respect to your Stock Grants and the value of your Cash Consideration. (See Section&nbsp;9). </FONT></P>


<P><FONT SIZE=2><B>19.&nbsp;&nbsp;&nbsp;How is the Cash Consideration Determined?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Cash Consideration that is payable to you will equal the aggregate fair market value of the number of shares subject to your Stock Grants on the Stock Grant
Date multiplied by 0.67. The Cash Consideration will not be included in any determination of your compensation for purposes of our benefit plans. (See Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>20.&nbsp;&nbsp;&nbsp;How much Cash Consideration am I entitled to receive in exchange for my tendered Old Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the value of the Cash Consideration that you would be entitled to receive is dependent on the value of the shares subject to the Stock Grants you will
receive, and since such value cannot be determined until the Stock Grant Date, it is not possible for us to currently determine the value of the Cash Consideration you will receive in the offer.
However, it will equal the aggregate fair market value
of the number of shares subject to your Stock Grants on the Stock Grant Date multiplied by 0.67. (See Section&nbsp;9). </FONT></P>

<P><FONT SIZE=2><B>21.&nbsp;&nbsp;&nbsp;When will I receive my Stock Grants and Cash Consideration?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stock Grant Date will be no sooner than the date we cancel the Old Grants. We plan to cancel properly tendered Old Grants on the first business day following
the expiration time of the offer. The Stock Grants will be effective, and the Cash Consideration will be payable, on the date we </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=10,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=103687,FOLIO='8',FILE='DISK005:[03PHI7.03PHI1337]KM1337A.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_9"> </A>
<BR>

<P><FONT SIZE=2>cancel
properly tendered Old Grants, which, assuming the offer expires on November&nbsp;13, 2003, we anticipate to be November&nbsp;14, 2003. Your award of stock will be evidenced by a share award
agreement, substantially in the form included in this Offer to Exchange as Schedule&nbsp;A, between you and us, and you will not receive a stock certificate for the stock until the end of the
non-transferability period. We expect to distribute the share award agreements and Cash Consideration promptly after the expiration of the offer. (See Section&nbsp;6). </FONT></P>

<P><FONT SIZE=2><B>22.&nbsp;&nbsp;&nbsp;What do I have to pay to get the Stock Grants and Cash Consideration?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will not be required to pay cash for the shares granted to you. Your consideration for the shares issued to you as the Stock Grants, and the Cash
Consideration payable to you, will be the Old Grants that you tender. (See Section 9). </FONT></P>

<P><FONT SIZE=2><B>23.&nbsp;&nbsp;&nbsp;Will I have to pay taxes if I exchange my options in the offer?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will recognize taxable income equal to the fair market value of the shares you receive in connection with the Stock Grants. You will also recognize taxable
income on the Cash Consideration on the date that it becomes payable to you. (See Section&nbsp;20 and Section&nbsp;21). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the issuance to our employees of any Stock Grants and the payment of the Cash Consideration in the offer, we are required to pay applicable federal, state and local
income and employment withholding taxes. However, since the Cash Consideration is payable on the same date as you receive the Stock Grants, we will withhold from the Cash Consideration the amount
necessary to satisfy our tax withholding obligations. In the event that the Cash Consideration exceeds these obligations, any excess will be paid directly to you. In the event that the Cash
Consideration does not fully satisfy these obligations, you will be required to make a cash payment to us for the additional amount. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you are a non-employee member of our board of directors, you are solely responsible to the appropriate taxing authorities for payment of your tax obligations arising in connection
with the offer. You will be required to pay taxes on the value of the shares subject to the Stock Grants and the Cash Consideration. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
option holders, including those subject to taxation in a foreign jurisdiction, whether by reason of nationality, residence or otherwise, should consult with their own personal tax
advisors as to the tax consequences of their participation in the offer. Tax consequences may vary depending on each individual participant's circumstances. Included in this Offer to Exchange is a
short summary of some of those consequences. (See Section&nbsp;20 and Section&nbsp;21). </FONT></P>

<P><FONT SIZE=2><B>24.&nbsp;&nbsp;&nbsp;When does the offer expire? Can the offer be extended, and if so, how will I be notified if it is extended?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><I>The offer expires November&nbsp;13, 2003, at 5:00&nbsp;p.m., Eastern time</I></FONT><FONT SIZE=2>, unless we extend the expiration
time. We may, in our sole discretion, extend the offer at any time, although we do not currently expect to do so. If we extend the expiration time, we will make a public announcement to inform you of
the extension no later than 9:00&nbsp;a.m., Eastern time, on the business day following the previously scheduled expiration time. (See Section&nbsp;2 and Section&nbsp;15). </FONT></P>

<P><FONT SIZE=2><B>25.&nbsp;&nbsp;&nbsp;How do I tender my Old Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you decide to tender your Old Grants, you must deliver before November&nbsp;13, 2003, at 5:00&nbsp;p.m., Eastern time, or such later date and time to which
we extend the expiration time of the offer, a </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=11,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=298935,FOLIO='9',FILE='DISK005:[03PHI7.03PHI1337]KM1337B.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_10"> </A>
<BR>

<P><FONT SIZE=2>properly
completed and duly executed Election Form and any documents required by the Election Form to us in any of the following ways: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
preferred method is for you to submit by fax to Gini DiBartolomeo, RCM Technologies,&nbsp;Inc., at the following fax number: (856) 486-2123.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alternatively,
you may submit by personal delivery (not intra-company mail), registered mail or overnight courier addressed to: </FONT></DD></DL>
<UL>
<UL>

<P><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies,&nbsp;Inc.<BR>
2500 McClellan Avenue, Suite&nbsp;350<BR>
Pennsauken, NJ 08109 </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may confirm receipt of your Election Form&nbsp;with Gini DiBartolomeo by e-mail at optionexchange@rcmt.com. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B> You are responsible for making sure that the method you use to submit your Election Form causes the Election Form to arrive by the expiration time.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;See the risk
factor entitled "You are responsible for making sure that the method you use to submit to us your Election Form or Notice to Withdraw from the Offer results in our receipt of your submission prior to
the expiration time." (See Section&nbsp;4). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we extend the offer beyond the expiration time, you must deliver the Election Form before the extended expiration time of the offer. We reserve the right to reject any or all tenders
of Old Grants that we determine are not in appropriate form or that we determine are unlawful to accept. Otherwise, we intend to accept properly and timely tendered Old Grants that are not validly
withdrawn. Upon expiration of the offer (which will be November&nbsp;13, 2003 at 5:00&nbsp;p.m., Eastern time, unless we extend it), we will promptly decide to either accept or reject the tendered
Old Grants. (See Section&nbsp;4 and Section&nbsp;6). </FONT></P>

<P><FONT SIZE=2><B>26.&nbsp;&nbsp;&nbsp;During what period of time may I withdraw previously tendered Old Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may withdraw your tendered Old Grants at any time before November&nbsp;13, 2003 at 5:00&nbsp;p.m., Eastern time. If we extend the offer beyond that time,
you may withdraw your tendered Old Grants at any time until the extended expiration time of the offer. To withdraw Old Grants that you have tendered, you must submit to us a properly completed and
executed Notice to Withdraw from the Offer. </FONT><FONT SIZE=2><I>We must receive your Notice to Withdraw from the Offer before 5:00&nbsp;p.m., Eastern time, November&nbsp;13, 2003,  </I></FONT><FONT SIZE=2>or such later date and time if we extend
the expiration time. (See Section&nbsp;5). </FONT></P>


<P><FONT SIZE=2><B>27.&nbsp;&nbsp;&nbsp;How do I withdraw previously tendered Old Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To withdraw Old Grants, you should use the Notice to Withdraw from the Offer. If you want to make changes to your election to participate in the offer but do not
wish to withdraw, you should submit a new Election Form as described above. If you elect to withdraw your previously tendered Old Grants, you should return your Notice to Withdraw from the Offer prior
to 5:00&nbsp;p.m., Eastern time, November&nbsp;13, 2003, or such later date and time if we extend the expiration time, in one of the following ways: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
preferred method is for you to submit by fax to Gini DiBartolomeo, RCM Technologies,&nbsp;Inc., at the following fax number: (856) 486-2123. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=7,SEQ=12,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=132933,FOLIO='10',FILE='DISK005:[03PHI7.03PHI1337]KM1337B.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_11"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alternatively,
you may submit by personal delivery (not intra-company mail), registered mail or overnight courier addressed to: </FONT></DD></DL>

<UL>
<UL>

<P><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies,&nbsp;Inc.<BR>
2500 McClellan Avenue, Suite&nbsp;350<BR>
Pennsauken, NJ 08109 </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may confirm receipt of your Notice to Withdraw from the Offer form with Gini DiBartolomeo by e-mail at optionexchange@rcmt.com. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B> You are responsible for making sure that the method you use to submit your Notice to Withdraw from the Offer causes it to arrive by the expiration time.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;See the
risk factor entitled "You are responsible for making sure that the method you use to submit to us your Election Form or Notice to Withdraw from the Offer results in our receipt of your submission
prior to the expiration time." (See Section&nbsp;5). </FONT></P>

<P><FONT SIZE=2><B>28.&nbsp;&nbsp;&nbsp;If I withdraw previously tendered Old Grants am I required to withdraw all Old Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you withdraw any tendered Old Grants, you must withdraw all tendered Old Grants. Accordingly, if you submit a Notice to Withdraw from the Offer, you will no
longer be deemed to participate in the offer. (See Section&nbsp;5). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you do not wish to withdraw </FONT><FONT SIZE=2><I>all </I></FONT><FONT SIZE=2>of your tendered Old Grants from the offer, you should </FONT><FONT SIZE=2><I>not  </I></FONT><FONT SIZE=2>submit a Notice to Withdraw from the Offer. Instead, you should
send us a new Election Form with your revised elections. Alternatively, if you have withdrawn tendered Old
Grants, you may re-tender any Old Grant prior to the expiration time by sending us a new Election Form. (See Section&nbsp;4 and Section&nbsp;5). </FONT></P>

<P><FONT SIZE=2><B>29.&nbsp;&nbsp;&nbsp;If I withdraw previously tendered Old Grants can I subsequently determine to tender Old Grants?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once you have withdrawn Old Grants, you may re-tender Old Grants only by again following the delivery procedures described in this Offer to Exchange and by doing
so prior to the expiration time. (See Section&nbsp;4 and Section&nbsp;5). </FONT></P>

<P><FONT SIZE=2><B>30.&nbsp;&nbsp;&nbsp;If I miss the deadline for submitting either my Election Form or Notice to Withdraw from the Offer, can I still participate in or withdraw from the offer?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No, this is a one-time offer, and we will strictly enforce the expiration time, which we intend will be 5:00&nbsp;p.m., Eastern time, November&nbsp;13, 2003,
subject only to any extension that we may grant. Unless you submit a properly completed and executed Election Form&nbsp;to us prior to the expiration time, you will not be able to participate in the
offer or change a prior election to participate in the offer. Unless you submit a properly completed and executed Notice to Withdraw from the Offer to us prior to the expiration time, you may not
withdraw any Old Grants that you properly tendered in the offer. (See Section&nbsp;4 and Section&nbsp;5). </FONT></P>

<P><FONT SIZE=2><B>31.&nbsp;&nbsp;&nbsp;What happens to my Old Grants if I do not accept the offer?  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you do not accept the offer, you will keep all of your Old Grants and you will not receive any Stock Grants or Cash Consideration. The Old Grants will retain
their current exercise prices and vesting schedules until you exercise them or they expire by their terms. (See Section&nbsp;6). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outstanding
options with exercise prices of less than $7.00&nbsp;per share are not eligible for exchange in the offer, and, absent any suggested action, will remain outstanding until
they expire by, or are exercised in accordance with, their original terms. They will retain their original exercise price and original vesting schedule. (See Section&nbsp;1 and Section&nbsp;6). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=8,SEQ=13,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=500742,FOLIO='11',FILE='DISK005:[03PHI7.03PHI1337]KM1337B.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_12"> </A>
<BR>

<P><FONT SIZE=2><B>32.&nbsp;&nbsp;&nbsp;Will the offer have any impact on my incentive stock options?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The mere fact that we have made the offer could possibly require you to hold shares purchased under your incentive stock options for a longer period in order to
achieve the tax benefits provided by those options. This could be the case even if you do not participate in the offer. Please see the risk factor entitled "Even if you elect not to participate in the
offer, your incentive stock options may be affected" for information concerning potential U.S. tax consequences. (See Section&nbsp;20). </FONT></P>

<P><FONT SIZE=2><B>33.&nbsp;&nbsp;&nbsp;Is this a repricing?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No, this is not a repricing because we are not resetting the exercise price of the options that you currently hold. Instead, you will receive shares of our common
stock and cash consideration in exchange for the options that you exchange in the offer. In a repricing, the exercise price of an individual's current options would be adjusted or a transaction having
that effect would occur. For financial reporting purposes, we would be required to record additional compensation expense each quarter until the repriced options were exercised, canceled or
terminated. The result would be lower reported earnings for us for several years. Since we are granting shares, and not options, we will take a one-time compensation charge to our reported earnings.
(See Section&nbsp;13). </FONT></P>

<P><FONT SIZE=2><B>34.&nbsp;&nbsp;&nbsp;Why are we not just granting additional options?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of the large number of options we currently have outstanding with exercise prices that are significantly higher than the current market price of our
common stock, a broad grant of additional options to our employees and directors would result in our issuing a substantial number of additional shares, which would have a negative and dilutive impact
on our stockholders. Additionally, our Stock Plans have a limited number of shares that are authorized for issuance, and if we simply issue new options, the number of shares available for future
issuance under the Stock Plans would be significantly reduced. (See Section&nbsp;3). </FONT></P>

<P><FONT SIZE=2><B>35.&nbsp;&nbsp;&nbsp;What if we are acquired by another company before the Stock Grants are effective and Cash Consideration is payable?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Stock Grants will be effective and the Cash Consideration will be payable on the same day that we cancel the Old Grants, the only scenario in which we
could be acquired by another company in a merger or an asset sale before the Stock Grants are effective and the Cash Consideration is payable is if such an event occurred prior to the expiration time
of the offer. If such an event were to occur prior to the expiration time, we would terminate the offer and your Old Grants would be treated as if they had not been tendered. (See Section&nbsp;6). </FONT></P>

<P><FONT SIZE=2><B>36.&nbsp;&nbsp;&nbsp;What if we are acquired by another company after the Stock Grants are effective and Cash Consideration is payable?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are acquired by another company after the Stock Grants are effective and Cash Consideration is payable, the restriction on the transferability of the Stock
Grants will be lifted as of the consummation of the transaction. (See Section&nbsp;6 and Section&nbsp;9). </FONT></P>


<P><FONT SIZE=2><B>37.&nbsp;&nbsp;&nbsp;Are there conditions to the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the offer is not conditioned upon a minimum number of options being tendered, the offer is subject to a number of other conditions. (See Section 7). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=9,SEQ=14,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=426493,FOLIO='12',FILE='DISK005:[03PHI7.03PHI1337]KM1337B.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_km1337_1_13"> </A>
<BR>

<P><FONT SIZE=2><B>38.&nbsp;&nbsp;&nbsp;How should I decide whether or not to participate in the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decision to participate in the offer must be each individual's personal decision, and it will depend largely on such individual's assumptions about the future
overall economic environment, the performance of the overall market and companies in our sector and our own business and stock price. It will also depend on the exercise price and vesting status of
your current options. (See Section 9 and Section&nbsp;20). </FONT></P>

<P><FONT SIZE=2><B>39.&nbsp;&nbsp;&nbsp;Do we or our Board of Directors have recommendations about your participation in the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. Neither we nor our Board of Directors are making any recommendations as to whether you should or should not tender any of your Old Grants in the offer. You
must make your own decision about whether to tender your Old Grants. For questions regarding tax implications or other investment-related questions, you should talk to your own legal counsel,
accountant and/or financial advisor. (See Section&nbsp;9 and Section&nbsp;20). </FONT></P>

<P><FONT SIZE=2><B>40.&nbsp;&nbsp;&nbsp;Where can I get more information about RCM, and who can I talk to if I have questions about the offer?  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Offer Documents contain all the terms and conditions of the offer and refer you to documents containing information about us. We ask that you read in full the
Offer Documents and the documents referred to therein before using the following resources, which are available to provide you with information about the offer: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Offer to Exchange E-Mail Hotline at </FONT><FONT SIZE=2><B><I>optionexchange@rcmt.com</I></B></FONT><FONT SIZE=2>; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Offer to Exchange Telephone Hotline at (856)&nbsp;486-1777, ext.&nbsp;131. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>The hotlines cannot assist you in making a decision about whether or to what extent to participate in the offer or provide you with counseling or information beyond that which
is included in the Offer Documents.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, if you want additional copies of the Offer Documents, you may contact: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies,&nbsp;Inc.<BR>
2500 McClellan Avenue, Suite&nbsp;350<BR></FONT> <FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2><BR>
(856) 486-1777, ext. 131 </FONT></P>

<P><FONT SIZE=2><B>Please note, </B></FONT><FONT SIZE=2><B><I>no one at RCM is authorized to give you advice about whether you should participate in the offer. </I></B></FONT><FONT SIZE=2><B>We recommend that
you evaluate the current market price of our common stock, among other factors, before deciding whether to tender any of your Old Grants. You must make your own decision
on whether to tender your Old Grants. For questions regarding tax implications or other investment-related questions, you should talk to your own legal counsel, accountant and/or financial advisor.
(See Section&nbsp;10, Section&nbsp;17 and Section&nbsp;18).  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=10,SEQ=15,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=809114,FOLIO='13',FILE='DISK005:[03PHI7.03PHI1337]KM1337B.;6',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ko1337_1_14"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1337_certain_risks_of_participating_in_the_offer"> </A>
<A NAME="toc_ko1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTAIN RISKS<BR>  OF PARTICIPATING IN THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><I>Participation in the offer involves a number of potential risks, including but not limited to those described below. The following
information highlights the material risks of participating in the offer, and the risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and in our Quarterly
Report on Form 10-Q for the fiscal quarter ended June 30, 2003 highlight the material risks involved with an investment in our securities and relating to our business.  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><I>Eligible participants should carefully consider all of these risks and are encouraged to speak with an investment and tax advisor as
necessary before deciding to participate in the offer. We strongly urge you to read this entire Offer to Exchange, including the Sections discussing tax consequences in the United States and Canada,
and the risk factors disclosed in our periodic reports filed with the Securities and Exchange Commission.  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><I> <A NAME="ko1337_risks_related_to_the_offer"> </A>
<A NAME="toc_ko1337_2"> </A>
<BR>    </I></FONT><FONT SIZE=2><B>RISKS RELATED TO THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>If you elect to exchange Old Grants, you will receive fewer shares than the number of shares you had a right to acquire through the exercise of your Old Grants.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares that you will receive for your Old Grants will be based on the exchange ratios that we have established for the various classes of eligible
options that we have granted. If you received multiple grants of eligible options, a different exchange ratio may apply to each separate grant. The precise exchange ratio for a particular grant is
based on a Black-Scholes valuation of such shares. This valuation takes into account the exercise price of the option being exchanged, the remaining term of the option and the current market value of
our shares. The number of shares you will receive will equal 150% of the Black-Scholes valuation of your Old Grants and will range from 1.68 eligible options for one share to 3.04 eligible options for
one share. Thus, you will have to exchange more than one eligible option to receive a single share. </FONT></P>

<P><FONT SIZE=2><B>You will lose the potential benefit of any vested Old Grants that are cancelled through the offer.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you participate in the offer and to the extent any of your Old Grants were vested, but unexercised, you will have to wait longer to transfer the shares subject
to the Stock Grant because of the transfer restrictions associated with the Stock Grants. If you exercised the vested portion of your Old Grants you would be eligible to transfer the shares subject to
the Old Grant immediately upon exercise, subject to any applicable securities restrictions and our policy regarding restrictions on the sale of shares of our common stock. </FONT></P>

<P><FONT SIZE=2><B>If your employment terminates before the expiration date, your participation in the offer will be automatically cancelled and you will not receive any Stock Grants or Cash
Consideration.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You must be actively employed with or providing service to us or one of our subsidiaries on the Stock Grant Date to receive any Stock Grants or Cash
Consideration. Accordingly, if your employment with or service to us terminates for any reason or no reason, even on account of a reduction-in-force, prior to the expiration time, your participation
in the offer will be automatically cancelled and you will not have the benefit of or right to any Stock Grants or Cash Consideration. In this case, your Old Grants will be treated as if they had not
been tendered, and your Old Grants will remain outstanding in accordance with their existing terms and conditions. </FONT></P>

<P><FONT SIZE=2><B>You are responsible for making sure that the method you use to submit to us your Election Form or Notice to Withdraw from the Offer results in our receipt of your submission
prior to the expiration time.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not have a record of receipt of your submission, we may request that you show us evidence of the submission. If you submit to us either an Election Form
or Notice to Withdraw from the Offer, you will promptly receive from us an e-mail confirming receipt of your submission. We recommend that you keep a copy of that e-mail in case we ask you for
evidence of timely submission. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=16,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=1043642,FOLIO='14',FILE='DISK005:[03PHI7.03PHI1337]KO1337A.;13',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_ko1337_1_15"> </A>
<BR>

<P><FONT SIZE=2>If
you do not receive such an e-mail within 24 hours of your submission, please contact us promptly by e-mailing us at </FONT><FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2>. If you
do not submit your Election Form or Notice to Withdraw from the Offer to us by fax, we recommend that you use registered mail or overnight courier, or submit your forms to us by personal delivery (but
not intra-company mail). You should keep your receipt or fax confirmation sheet in case we ask you for evidence of timely submission. If you do not have evidence of timely submission, we will not be
obligated to change any determinations we have made regarding your participation in the offer. </FONT></P>

<P><FONT SIZE=2><B>Certain legal matters or regulatory approvals affecting us might be adversely affected by the offer.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not aware of any license or regulatory permit that appears to be material to our business that might be adversely affected by the offer, or of any approval
or other action by any government or governmental, administrative or regulatory authority or agency, domestic or foreign, that would be required for the actions contemplated herein. Should any such
approval or other action be required, we presently contemplate that we will seek such approval or take such other action. We cannot assure you that any such approval or other action, if needed, could
be obtained or what the conditions imposed in connection with such approvals would entail or whether the failure to obtain any such approval or other action would result in adverse consequences to our
business. Our obligation under the offer to accept tendered Old Grants and to issue Stock Grants and pay Cash Consideration in exchange therefore is subject to satisfaction of the conditions described
in Section 7 of this Offer to Exchange. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are prohibited by applicable laws or regulations from issuing Stock Grants and paying Cash Consideration or required to obtain a license or regulatory permit or to make a filing
before issuing Stock Grants and paying the Cash Consideration, we may not issue any Stock Grants or pay Cash Consideration. However, we will not cancel the Old Grants you tendered if we cannot issue
Stock Grants and pay the Cash Consideration. We are unaware of any such prohibitions at this time or of any prohibitions that cannot be satisfied by obtaining a license or regulatory permit or making
a filing, and we will use reasonable efforts to effect the issuance of the Stock Grants and payment of the Cash Consideration. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1337_tax-related_risks_for_i__ko102184"> </A>
<A NAME="toc_ko1337_3"> </A>
<BR></FONT><FONT SIZE=2><B>TAX-RELATED RISKS FOR INDIVIDUALS SUBJECT TO U.S. TAXES    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>If you elect to participate in the offer, you should consider the tax consequences.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you participate in the offer, the Stock Grants and Cash Consideration will result in an immediate tax consequence to you on the date of issuance and payment.
You will recognize taxable income for federal, and possibly state and local tax purposes, equal to the fair market value of the shares on the date of grant. Because you will not be able to transfer
the shares subject to your Stock Grants until (i) the one year anniversary of the Stock Grant Date or (ii) earlier if we experience a change in control, subject to any subsequent applicable securities
restrictions and our policies regarding restrictions on the sale of shares of our common stock, you will be required to satisfy this tax obligation from alternative sources. You will also recognize
taxable income for federal, and possibly state and local, tax purposes equal to the value of the Cash Consideration that is payable to you. Satisfaction of most of your tax obligations should be
satisfied from the Cash Consideration that is payable to you, and we will withhold from the payment of the Cash Consideration an amount necessary to satisfy our tax withholding obligation. You should
be aware that if the Cash Consideration that is payable to you is not sufficient to cover our withholding obligations, you will be required to pay to us any remaining amounts. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should review Section 20 carefully for a more detailed discussion of the potential U.S. federal tax consequences of participation in the offer. We strongly recommend that you consult
your personal tax advisor regarding your personal situation before deciding whether to participate in the offer. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=17,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=457938,FOLIO='15',FILE='DISK005:[03PHI7.03PHI1337]KO1337A.;13',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<A NAME="page_ko1337_1_16"> </A>

<P><FONT SIZE=2><B>If you elect to participate in the offer, the value of the shares issued to you as Stock Grants may have decreased by the time you are first eligible to transfer the shares.  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the trading price of our common stock decreases after the date of issuance and your shares are subsequently sold, you may receive an amount from the sale of
the shares that is less than your tax liability. </FONT></P>

<P><FONT SIZE=2><B>Even if you elect not to participate in the offer, your incentive stock options may be affected.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you hold incentive stock options, we do not believe that the offer will affect the U.S. federal tax status of those incentive stock options if you decide not
to accept the offer as to your incentive stock options. However, the U.S. Internal Revenue Service (the "IRS") may characterize the offer as a "modification" of those incentive stock options, even if
you decline the offer. A successful assertion by the IRS that your incentive stock options were modified would extend the period you would have to hold the shares purchased under those options in
order to qualify all of the gain on a subsequent sale of those shares as long-term capital gain. Such an extended holding period for long-term capital gain would require that the sale of the shares
not take place until the later of (i) two years from the date of the deemed modification of your incentive stock options or (ii) one year from the date of the option exercise for those shares. In
addition, such a deemed modification may also cause a portion of your incentive stock options to be treated as nonqualified stock options upon exercise by reason of the dollar limitation imposed under
the U.S. federal tax laws on the initial exercisability of incentive stock options. Under that limitation, the maximum dollar amount of shares for which an incentive stock option may first become
exercisable in any calendar year, including the calendar year in which an Old Grant is deemed to have been modified and thereby treated as newly granted, cannot exceed $100,000, measured on the basis
of the fair market value of the shares on the grant date of the option or, if later, at the time of any deemed modification of that grant. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1337_tax-related_risks_for_residents_of_canada"> </A>
<A NAME="toc_ko1337_4"> </A>
<BR></FONT><FONT SIZE=2><B>TAX-RELATED RISKS FOR RESIDENTS OF CANADA    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>If you elect to participate in the offer, you should consider the tax consequences.  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under general tax principles in Canada, you will be taxed on the fair market value of the shares subject to your Stock Grants and the value of the Cash
Consideration payable to you on the date such shares are issued to you and the Cash Consideration is payable to you. Please see Section 21 for a more detailed discussion of the potential tax
consequences of participation by residents of Canada in the offer. </FONT><FONT SIZE=2><B>We strongly recommend that you consult with your personal tax advisor prior to participating in the
offer.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1337_tax-related_risks_for_i__ko102325"> </A>
<A NAME="toc_ko1337_5"> </A>
<BR></FONT><FONT SIZE=2><B>TAX-RELATED RISKS FOR INDIVIDUALS SUBJECT TO FOREIGN TAX    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Our employees and directors who are subject to the tax laws in countries other than the United States and Canada may experience adverse tax consequences as a result of
participating in the offer. You should consult your personal tax advisor before making a decision to participate in the offer.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are eligible to participate in the offer, but are subject to the tax laws in a country other than the U.S. and Canada, you should be aware that there may
be other tax and social insurance consequences to you. We strongly recommend that you consult your personal tax advisor regarding your personal situation and any potential tax or social insurance
consequences prior to participating in the offer. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=18,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=288864,FOLIO='16',FILE='DISK005:[03PHI7.03PHI1337]KO1337A.;13',USER='MKEANE',CD='30-SEP-2003;12:36' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_kq1337_1_17"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq1337_the_offer"> </A>
<A NAME="toc_kq1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>THE OFFER    <BR>    </B></FONT></P>


<P><FONT SIZE=2><I>Section 1. Eligibility  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are eligible to participate in the offer and receive Stock Grants and Cash Consideration in exchange for your outstanding option grants with per share
exercise prices of $7.00 or higher under the RCM Technologies, Inc. 1992 Incentive Stock Option Plan, the RCM Technologies, Inc. 1994 Nonemployee Director Stock Option Plan, the Amended and Restated
RCM Technologies, Inc. 1996 Executive Stock Plan and the RCM Technologies, Inc. 2000 Employee Stock Incentive Plan </FONT><FONT SIZE=2><I>if</I></FONT><FONT SIZE=2>: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>you
are an active employee or director of ours or one of our subsidiaries as of the date hereof and on the Stock Grant Date, which we expect will be no sooner than November
14, 2003; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>you
live or work in and are subject to taxes in the United States or Canada. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
for any reason, you cease being an active employee or director of ours at any time between the date you tender your Old Grants and the expiration time, your participation in the
offer will be automatically cancelled and you will not receive any Stock Grants or Cash Consideration. In this case, your Old Grants will be treated as if they had not been tendered, and your Old
Grants will remain outstanding in accordance with their existing terms and conditions. </FONT></P>


<P><FONT SIZE=2><I>Section 2. Terms of Exchange; Expiration Time  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of the offer, we will deliver Stock Grants and Cash Consideration in exchange for any Old Grants held by eligible employees
and directors that are properly tendered in accordance with Section 4 of this Offer to Exchange and not validly withdrawn in accordance with Section 5 of this Offer to Exchange before the expiration
time, which means 5:00 p.m., Eastern time, November 13, 2003, unless and until we, in our sole discretion, have extended the period of time during which the offer will remain open, in which event the
term "expiration time" refers to the latest time and date at which the offer, as so extended, expires. Your participation in the offer is completely voluntary, and you are not obligated to participate
in the offer. See Section 7 and Section 15 of this Offer to Exchange for a description of our rights to extend, delay, terminate and amend the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will not accept partial tenders of any Old Grant. Therefore, you must tender all or none of the remaining shares underlying each of your Old Grants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
your Old Grants are properly tendered and accepted for exchange, they will be cancelled and, subject to the terms of the offer, you will be issued Stock Grants and be entitled to Cash
Consideration. All of the shares granted to employees and directors as Stock Grants will be fully vested and nonforfeitable on the Stock Grant Date. However, the shares will be subject to a
restriction that they cannot be transferred until (i) the first anniversary of the Stock Grant Date or (ii) earlier if we experience a change in control, subject to any subsequent applicable
securities restrictions and our policies regarding restrictions on the sale of shares of our common stock. The shares issued as Stock Grants will be granted under the RCM Technologies, Inc. 2000
Employee Stock Incentive Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cash Consideration will be paid from our working capital. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of the offer, a "business day" means any day other than a Saturday, Sunday or U.S. federal holiday and consists of the time period from 9:00 a.m. to 5:00 p.m., Eastern time. </FONT></P>


<P><FONT SIZE=2><I>Section 3. Purpose of the Offer  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of our outstanding options under the RCM Technologies, Inc. 1992 Incentive Stock Option Plan, the RCM Technologies, Inc. 1994 Nonemployee Director Stock
Option Plan, the Amended and </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=19,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=442176,FOLIO='17',FILE='DISK005:[03PHI7.03PHI1337]KQ1337A.;8',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_18"> </A>
<BR>

<P><FONT SIZE=2>Restated
RCM Technologies, Inc. 1996 Executive Stock Plan and the RCM Technologies, Inc. 2000 Employee Stock Incentive Plan, whether or not they are currently exercisable, have exercise prices that
are significantly higher than the recent and current market price of our common stock. We believe many of those options are unlikely to be exercised in the foreseeable future. We are making the offer
to provide our eligible employees and directors with a direct ownership interest in us, creating more effective performance incentives for our employees and directors, in an effort to maximize
stockholder value. </FONT></P>

<P><FONT SIZE=2><I>Section 4. Procedures for Tendering Old Grants; Change of Election  </I></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proper Tender of Old Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You may tender one or more of your Old Grants, regardless of whether they are vested and
exercisable. However, if you choose to tender an Old Grant, you must tender that Old Grant in full. For example, if you hold (i) an option grant that was exercisable originally for 1,000 shares at
$10.00 per share (the "$10.00 Option Grant"), but you already have exercised the grant with respect to 700 shares, (ii) an option grant to purchase 1,000 shares at an exercise price of $13.00 per
share (the "$13.00 Option Grant") and (iii) an option grant to purchase 1,000 shares at an exercise price of $4.00 per share (the "$4.00 Option Grant"), you may choose to tender either: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>None
of your option grants;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
$10.00 Option Grant with respect to all remaining 300 shares;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
$13.00 Option Grant with respect to all 1,000 shares; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Both
the $10.00 and $13.00 Option Grants with respect to the 1,300 shares underlying those two option grants. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>You
may not tender the $4.00 Option Grant because only option grants with exercise prices of $7.00 and higher are eligible for exchange. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proper Completion of Election Form.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;To validly tender your Old Grants you must properly complete, execute and submit the
Election Form to us in one of the following ways: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
preferred method is for you to submit it by fax to Gini DiBartolomeo, RCM Technologies, Inc., at the following fax number: (856) 486-2123.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alternatively,
you may submit it by personal delivery (not intra-company mail), registered mail or overnight courier addressed to: </FONT></DD></DL>
</UL>
<UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies, Inc.<BR>
2500 McClellan Avenue, Suite 350<BR>
Pennsauken, NJ 08109 </FONT></P>

</UL>
</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
Election Form </FONT><FONT SIZE=2><B><I>must be received</I></B></FONT><FONT SIZE=2> by the expiration time, which is currently scheduled for 5:00 p.m., Eastern time,
November 13, 2003.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may confirm receipt of your Election Form with Gini DiBartolomeo by e-mail at </FONT><FONT SIZE=2><I>optionexchange@rcmt.com.</I></FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changing Your Election to Tender Old Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;To validly change your election regarding the tender of your Old Grants, you
must complete, execute and submit a new Election Form. If you submit a new Election Form that is properly completed, signed and dated prior to the expiration time, it will replace any previously
submitted Election Form, which will be disregarded. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=20,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=616283,FOLIO='18',FILE='DISK005:[03PHI7.03PHI1337]KQ1337A.;8',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_19"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
new Election Form must be signed and dated and must specify: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
name, as the name of the option holder tendering the Old Grants; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>With
respect to each Old Grant being tendered:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
grant date;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
exercise price; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
total number of shares subject to the unexercised option grant. </FONT></DD></DL>
</DD></DL>
</UL>

<P><FONT SIZE=2>To
submit your new Election Form to us, follow the instructions above for the submission of Election Forms. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deadline for Tendering Old Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This is a one-time offer, and we are required to strictly enforce the expiration time,
which is currently scheduled for 5:00 p.m., Eastern time, November 13, 2003, subject only to any extension that we may grant. Unless you submit a properly completed and executed Election Form to us
prior to the expiration time, you will not be able to participate in the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
timely submission of the Election Form is your responsibility. We intend to confirm via e-mail the receipt of your Election Form within 24 hours; if you have not received such a
confirmation of receipt, it is your responsibility to ensure that your Election Form has been received by us. Our confirmation of receipt of your documents is not by itself an acceptance by us of your
Old Grants for exchange in the offer. (See Section 6). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Determination of Validity; Rejection of Old Grants; Waiver of Defects; No Obligation to Give Notice of Defects.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We will
determine, in our sole discretion, answers to all questions as to the form of documents and the validity, form, eligibility, including time of receipt, and acceptance of any tender of Old Grants. Our
determination of these matters will be final and binding on all parties. We reserve the right to reject any or all tenders of Old Grants that we determine are not in appropriate form or that we
determine are unlawful to accept. Otherwise, we will accept properly tendered Old Grants that are not validly withdrawn. We also reserve the right to waive any of the conditions of the offer or any
defect or irregularity in any tender of any Old Grants. No tender of Old Grants will be deemed to have been properly made until all defects or irregularities have been cured by the tendering option
holder or waived by us. Neither we nor any other person is obligated to give notice of any defects or irregularities in tenders, nor will anyone incur any liability for failure to give any notice.
This is a one-time offer, and we are required to strictly enforce the offer period, subject only to an extension that we may grant in our sole discretion. </FONT></P>


<P><FONT SIZE=2><I>Section 5. Withdrawal Rights; Change of Decision to Withdraw; Withdrawal After the Expiration Time  </I></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proper Withdrawal from the Offer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You may withdraw your tendered Old Grants at any time before 5:00 p.m., Eastern time,
November 13, 2003. If we extend the offer beyond that time, you may withdraw your tendered Old Grants at any time until the extended expiration time of the offer. You may only use the Notice to
Withdraw from the Offer if you want to withdraw from participation in the offer completely. You may not use the Notice to Withdraw from the Offer to withdraw one Old Grant but not another. In that
case, you must submit a new Election Form. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
validly withdraw tendered Old Grants, you must submit a completed, signed and dated Notice to Withdraw from the Offer, with the required information, in one of the following ways: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
preferred method is for you to submit it by fax to Gini DiBartolomeo, RCM Technologies, Inc., at the following fax number: (856) 486-2123. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=21,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=970985,FOLIO='19',FILE='DISK005:[03PHI7.03PHI1337]KQ1337A.;8',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_20"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alternatively,
you may submit it by personal delivery (not intra-company mail), registered mail or overnight courier addressed to: </FONT></DD></DL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies, Inc.<BR>
2500 McClellan Avenue, Suite 350<BR>
Pennsauken, NJ 08109 </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
Election Form or Notice to Withdraw </FONT><FONT SIZE=2><B><I>must be received</I></B></FONT><FONT SIZE=2> by the expiration time, which is currently scheduled for 5:00 p.m.,
Eastern time, November 13, 2003.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may confirm receipt of your Election Form or Notice to Withdraw from the Offer with Gini DiBartolomeo by e-mail at </FONT> <FONT SIZE=2><I>optionexchange@rcmt.com.</I></FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changing Your Decision to Withdraw From the Offer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Unless you properly re-tender your Old Grants by completing, executing and
submitting a new Election Form before the expiration time by following the procedures described in Section 4 of this Offer to Exchange, you may not rescind their withdrawal and any tendered Old Grants
that you have withdrawn will be deemed not properly tendered for purposes of the offer. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deadline for Withdrawing From the Offer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This is a one-time offer, and we are required to strictly enforce its expiration
time, which is currently scheduled for 5:00 p.m., Eastern time, November 13, 2003, subject only to any extension that we may grant. Unless you submit a properly completed and executed Notice to
Withdraw from the Offer to us prior to the expiration time, you may not withdraw any Old Grants that you properly tendered in the offer, and they will be exchanged for Stock Grants and Cash
Consideration. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
timely submission of the Notice to Withdraw from the Offer is your responsibility. We intend to confirm via e-mail the receipt of your Notice to Withdraw from the Offer within 24
hours; if you have not received such a confirmation of receipt, it is your responsibility to ensure that your Notice to Withdraw from the Offer has been received by us. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Neither we nor any other person is obligated to give notice of any defects or irregularities in any Notice to
Withdraw from the Offer, nor will anyone incur any liability for failure to give any notice. We will determine, in our sole discretion, all questions as to the form and validity, including time of
receipt, of Notices to Withdraw from the Offer. Our determination of these matters will be final and binding. </FONT></P>

<P><FONT SIZE=2><I>Section 6. Acceptance of Old Grants; Issuance of Stock Grants and Payment of Cash Consideration  </I></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of Old Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and conditions of the offer and as promptly as practicable following the expiration
time, we will accept and cancel all Old Grants that are properly tendered and not validly withdrawn before the expiration time. Subject to our rights to extend, terminate and amend the offer discussed
in Section 7 of this Offer to Exchange, we currently expect that we will accept all properly tendered Old Grants that are not validly withdrawn by 5:00 p.m., Eastern time, November 13, 2003. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice of Acceptance.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the offer, we will be deemed to have accepted tendered Old Grants as of the time when
we give oral or written notice to Gini DiBartolomeo, RCM Technologies, Inc. or the option holders of our acceptance of such grants for exchange. We may provide this notice of acceptance by press
release, e-mail or intra-office mail. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of Old Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If you elect to participate in the offer, your tendered Old Grants will be cancelled on the date
we accept them in the offer. Unless we extend the offer, we expect to accept and cancel all tendered Old Grants on November 14, 2003. Upon cancellation of your tendered Old </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=22,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=336434,FOLIO='20',FILE='DISK005:[03PHI7.03PHI1337]KQ1337A.;8',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_21"> </A>
<BR>

<P><FONT SIZE=2>Grants,
you will have no further rights with respect to those grants or under their corresponding stock option agreements, and those grants will have no value to you. By tendering your Old Grants, you
agree that the applicable stock option agreements will terminate upon our cancellation of the grants. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Status of Old Grants Not Tendered or Accepted.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Old Grants that are not tendered for exchange or that we do not accept will
remain outstanding and retain their current exercise price, vesting schedule and other terms and conditions. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Grants and Payment of Cash Consideration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Stock Grants will be effective and the Cash Consideration will be
payable, on the date we cancel properly tendered Old Grants, which, assuming the offer expires on November 13, 2003, we anticipate to be November 14, 2003. Your award of stock
will be evidenced by a share award agreement, substantially in the form included in this Offer to Exchange as Schedule A, between you and us, and you will not receive a stock certificate for the stock
until the end of the non-transferability period. We expect to distribute the share award agreements and the Cash Consideration promptly after the expiration of the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the issuance to our employees of any Stock Grants, and the payment of the Cash Consideration, in the offer, our employees are required to pay applicable federal, state
and local income and employment taxes. We have a corresponding withholding obligation with respect to such taxes. Since the Cash Consideration is payable on the same date as you receive the Stock
Grants, we will withhold from the Cash Consideration the amount necessary to satisfy our tax withholding obligations. In the event that the Cash Consideration exceeds these obligations, any excess
will be paid directly to you. In the event that the Cash Consideration does not fully satisfy these obligations, you will be required to make a cash payment to us for the additional amount. If you are
a non-employee member of our board of directors, you are solely responsible to the appropriate taxing authorities for payment of your tax obligations arising in connection with the offer. You will be
required to pay taxes on the value of the shares subject to the Stock Grants and the Cash Consideration. The Cash Consideration that will be payable to you is intended to offset a portion of your
taxes. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of a Business Combination Involving RCM Prior to the Stock Grant Date.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Since we intend to grant the Stock Grants and
pay the Cash Consideration on the same day that we cancel the Old Grants, the only scenario in which we could be acquired by another company in a merger or an asset sale before issuing the Stock
Grants and paying the Cash Consideration is if such an event occurred prior to the expiration time of the offer. If such an event were to occur prior to the expiration time, we would terminate the
offer and your Old Grants would be treated as if they had not been tendered. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of a Business Combination Involving RCM After the Stock Grant Date.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If we are acquired by another company in a merger
or an asset sale after the Stock Grant Date, but prior to the date the restrictions on the transferability of your Stock Grants lapse, the restrictions on transferability will lapse on the date of the
consummation of the merger or asset sale. </FONT></P>

<P><FONT SIZE=2><I>Section 7. Conditions to the Offer  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of the offer, we will not be required to accept any Old Grants tendered for exchange and we may terminate or amend the offer,
or postpone our acceptance and cancellation of any options tendered for exchange, in each case, subject to Rule 13e-4(f)(5) under the Securities Exchange Act of 1934, as amended, if at any time after
this date and prior to the expiration time, any of the following events has occurred, or has been determined by us to have occurred, and, in our reasonable judgment in any case and regardless of the
circumstances giving rise to the event, the occurrence of such event or events makes it inadvisable for us to proceed with the offer or with the acceptance and cancellation of Old Grants tendered for
exchange: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>There
shall have been threatened or instituted or be pending any action or proceeding by any governmental, regulatory or administrative agency or authority that directly or
indirectly </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=23,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=411432,FOLIO='21',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_22"> </A>
<UL>
<UL>

<P><FONT SIZE=2>challenges
or delays or restricts the making of the offer, the acquisition or cancellation of some or all of the tendered Old Grants pursuant to the offer, or the issuance of Stock Grants and payment
of Cash Consideration, or otherwise relates in any manner to the offer, or that, in our reasonable judgment, could materially and adversely affect our business, condition (financial or other), income,
operations or prospects or materially impair (e.g., by increasing the accounting costs associated with the offer) the contemplated benefits of the offer to us, where the contemplated benefits include
the opportunity to align employee, director and stockholder interests and offer eligible employees and directors a valuable incentive to stay with us and to achieve high levels of performance; </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>There
shall have occurred:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
general suspension of trading in, or limitation of prices for, securities on The Nasdaq National Market, any national securities exchange or in the over-the-counter
market;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
declaration of a banking moratorium or any suspension of payments in respect of banks in the United States, whether or not mandatory;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
limitation, whether or not mandatory, by any governmental, regulatory or administrative agency or authority on, or any event that, in our reasonable judgment, might
affect the extension of credit to us by banks or other lending institutions in the United States;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
commencement of a war, armed hostilities or other international or national crisis directly or indirectly affecting the United States;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
change in the general political, market, economic or financial conditions in the United States or abroad that could have a material adverse effect on our business,
condition (financial or other), income, operations or prospects or that of any of our subsidiaries or that, in our reasonable judgment, makes it inadvisable to proceed with the offer; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>in
the case of any of the foregoing existing at the time of the commencement of the offer, a material acceleration or worsening thereof.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>There
shall have occurred any change, development, clarification or position taken in generally accepted accounting standards that could or would require us to record an
additional compensation expense that we did not intend against our earnings in connection with the offer for financial reporting purposes;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>A
tender or exchange offer for some or all of our shares, or a merger or acquisition proposal for us, shall have been proposed, announced or made by another person or entity
or shall have been publicly disclosed; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Any
change or changes shall have occurred in our business, condition (financial or other), assets, income, operations, prospects or stock ownership that, in our reasonable
judgment, is materially adverse to us or may materially impair the contemplated benefits of the offer to us. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
conditions to the offer are for our benefit. We may assert them in our sole discretion regardless of the circumstances giving rise to them before the expiration time. We may waive
them, in whole or in part, at any time and from time to time prior to the expiration time, in our discretion, whether or not we waive any other condition to the offer. Our failure at any time to
exercise any of these rights will not be deemed a waiver of any such rights. The waiver of any of these rights with respect to particular facts and circumstances will not be deemed a waiver with
respect to any other facts and circumstances. Any determination we make concerning the events described in this Section 7 will be final and binding upon all persons. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=24,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=759483,FOLIO='22',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_23"> </A>
<BR>

<P><FONT SIZE=2><I>Section 8. Price Range of Our Common Stock  </I></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is currently traded on The Nasdaq National Market under the symbol "RCMT." The following table shows, for the periods indicated, the closing
prices per share of our common stock as reported by The Nasdaq National Market. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="82%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>High</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Low</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><B>Fiscal Year 2003</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended March 31, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4.08</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2.52</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended June 30, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.98</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2.10</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2><BR><FONT SIZE=2><B>Fiscal Year 2002</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended March 31, 2002</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>5.34</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4.41</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended June 30, 2002</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>5.25</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4.10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended September 30, 2002</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>5.14</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.73</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended December 31, 2002</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4.94</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.70</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2><BR><FONT SIZE=2><B>Fiscal Year 2001</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended March 31, 2001</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>8.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2.88</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended June 30, 2001</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>5.70</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2.85</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended September 30, 2001</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>6.48</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="74%"><FONT SIZE=2>Quarter ended December 31, 2001</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4.75</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.41</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of September 26, 2003, the closing price of our common stock, as reported by The Nasdaq National Market, was $5.15 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>We recommend that you evaluate current market quotes for our common stock, among other factors, before deciding whether to tender your Old
Grants.</B></FONT></P>

<P><FONT SIZE=2><I>Section 9. Source and Amount of Consideration; Terms of the Stock Grants and Cash Consideration  </I></FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source of Consideration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We will issue the Stock Grants under the RCM Technologies, Inc. 2000 Employee Stock Incentive Plan
(the "2000 Plan"). No Stock Grants will be issued under the RCM Technologies, Inc. 1992 Incentive Stock Option Plan (the "1992" Plan), the RCM Technologies, Inc. 1994 Nonemployee Director Stock Option
Plan (the "1994 Plan"), the Amended and Restated RCM Technologies, Inc. 1996 Executive Stock Plan (the "1996 Plan," and together with the 1992 Plan, the 1994 Plan and the 2000 Plan, the "Stock Plans")
as part of the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cash Consideration will be paid out of our working capital. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of Consideration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The number of shares underlying the Stock Grants will be determined according to exchange ratios.
For each Old Grant that you exchange, you will receive a number of shares of our common stock that is determined based on the Black-Scholes valuation of such Old Grant. Such valuation takes into
account the exercise price of the option being exchanged, the remaining term of the option and the current market value of our shares. The number of shares you </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=7,SEQ=25,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=386093,FOLIO='23',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_24"> </A>
<BR>

<P><FONT SIZE=2>will
receive will equal 150% of the Black-Scholes valuation of your Old Grant. The number of shares underlying the Stock Grants will be determined pursuant to the following exchange ratios: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="23%" ALIGN="LEFT"><FONT SIZE=1><B>Date of Grant of Old Grant<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="23%" ALIGN="CENTER"><FONT SIZE=1><B>Expiration Date of Old Grant</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Exercise Price Per Share for Old Grant</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="23%" ALIGN="CENTER"><FONT SIZE=1><B>Exchange Ratio : Old Grant to Stock Grant*</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/06/1998</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/03/2008</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>15.31</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.70:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/01/1998</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/01/2008</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>15.06</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.66:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>03/08/2000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>03/08/2010</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>14.88</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.01:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>10/02/1998</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>10/02/2008</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>14.13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.57:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>05/18/1999</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>05/18/2009</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>14.00</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.23:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>04/04/2000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>04/04/2010</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>11.93</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>1.73:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>06/17/1999</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>06/17/2009</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>11.50</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>1.91:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>10/08/1998</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>10/08/2008</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>11.25</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.12:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>10/06/1999</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>10/06/2009</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>10.19</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>1.68:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>06/20/1997</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>06/20/2007</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>10.13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.62:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/01/1997</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/01/2007</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>10.13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.39:1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>03/20/1996</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>03/20/2006</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>8.13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>3.04:1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/21/1996</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="CENTER"><FONT SIZE=2>11/21/2006</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT"><FONT SIZE=2>7.13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>2.16:1</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>The
exchange ratios as presented have been rounded to two decimal places. The exchange ratios used to determine the actual number of shares that you will receive if you choose to tender
any Old Grants will not be rounded. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
number of shares underlying each Stock Grant will be rounded up or down to the nearest whole share as appropriate and adjusted for any stock splits, reverse stock splits, stock
dividends and similar events prior to the Stock Grant Date. In addition, the number of shares underlying each Stock Grant will not exceed the number of shares underlying each tendered Old Grant. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of September 30, 2003, options to purchase 2,571,389 shares were issued and outstanding under the Stock Plans. These options had exercise prices ranging from $3.00 to $15.31. Only
those options with an exercise price equal to or higher than $7.00 are eligible to participate in the offer. If all eligible employees and directors tender all of their Old Grants eligible for
exchange in the offer, subject to the terms and conditions of this Offer to Exchange, Old Grants to purchase a total of 1,328,273 shares will be canceled and we will issue Stock Grants for a total of
607,945 shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cash Consideration is designed to be cash flow neutral to us assuming that we will be able to claim tax deductions related to the Stock Grants issued and the Cash Consideration paid
in the offer and that we have taxable income to offset against those deductions in the applicable tax periods. The amount of Cash Consideration that will be payable to each eligible employee and
director who tenders his Old Grants will equal the aggregate fair market value of the shares subject to the individual's Stock Grants on the Stock Grant Date multiplied by 0.67. For example, if the
aggregate fair market value of the Stock Grants you receive is $1,000, the Cash Consideration that is payable to you will equal $670. As we cannot predict the fair market value of our shares of common
stock on the Stock Grant Date, we cannot currently determine the aggregate amount of Cash Consideration that will be paid in connection with the offer. However, assuming a fair market value of $5.15
(the closing price per share of our common stock on September 26, 2003), and assuming all eligible Old Grants are tendered, $2,097,714 would be paid as Cash Consideration. The Cash Consideration will
not be included in any determination of your compensation for purposes of our benefit plans. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material Terms of the Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The following description of the terms of the offer and the Stock Grants and Cash
Consideration is merely a summary of the material terms and does not purport to be complete. The statements are subject to, and are qualified in their entirety by reference to, all provisions of our
Stock Plans, and the forms of agreements thereunder. Please contact us at RCM </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=8,SEQ=26,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=150139,FOLIO='24',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_25"> </A>
<BR>

<P><FONT SIZE=2>Technologies,
Inc., 2500 McClellan Avenue, Suite 350, Pennsauken, NJ, 08109, Attention: Gini DiBartolomeo, e-mail: </FONT><FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2>, telephone:
(856) 486-1777, ext. 131, to receive a copy of our Stock Plans and the forms of agreements thereunder. We will promptly furnish you copies of these documents at our expense. </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Each
Stock Grant will be issued under our 2000 Plan. All Stock Grants will be subject to the terms of the 2000 Plan, and to the terms of a new share award agreement,
substantially in the form included in this Offer to Exchange as Schedule A.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
shares subject to the Stock Grants will have dividend, voting and all other stockholder rights, except that the shares will be subject to transfer restrictions.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
will not be able to participate in the dividend reinvestment plan with respect to any shares you receive in the offer until the transfer restrictions with respect to
those shares have lapsed.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Stock Grants will be evidenced by a share award agreement, substantially in the form included in this Offer to Exchange as Schedule A, between us and each option holder
whose tendered Old Grants in the offer are accepted and cancelled.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>We
expect to distribute the share award agreements for the Stock Grants promptly after the expiration of the offer.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
share award agreement will contain the transfer restrictions applicable to the shares to be issued to each such option holder. The transfer restrictions will lapse (i)
on the first anniversary of the Stock Grant Date or (ii) earlier if we experience a change in control, subject to any subsequent applicable securities restrictions and our policies regarding
restrictions on the sale of shares
of our common stock. After the transfer restrictions lapse, you will be able to sell or transfer the shares at any time, subject to applicable securities laws and our policies regarding restrictions
on the sale of shares of our common stock.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>If
your employment or service with us terminates for any reason prior to lapse of the transfer restrictions, the transfer restrictions will continue in existence. If you die
prior to the expiration of the transfer restrictions, the shares will be transferred to your estate and continue to be subject to the applicable transfer restrictions.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
stock options provide you with the right to buy shares at a fixed exercise price, typically the fair market value of the shares on the date the option is granted.
Outright ownership of the shares occurs only if you exercise the option by purchasing the stock at the fixed exercise price. Accordingly, the value realized on exercise is the difference between the
fixed exercise price and the market price of the shares when the option is exercised. The shares subject to your Stock Grants are shares that you will own immediately, although they will be subject to
transfer restrictions. Unlike your stock options, you will not pay a purchase price for the shares. Accordingly, the value of the shares is the fair market value of the shares on the Stock Grant Date. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration of Shares of Common Stock Underlying Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We have filed registration statements on Form S-8 with the
Securities and Exchange Commission to register under the Securities Act of 1933, as amended (the "Securities Act"), shares of stock for offer and sale pursuant to our Stock Plans. All of the shares
issuable under our Stock Plans, including the Stock Grants, have been registered under the Securities Act. Unless you are one of our affiliates, upon expiration of the transfer restrictions described
herein, you will be able to sell the shares underlying your Stock Grants free of any transfer restrictions under applicable U.S. securities laws, provided our insider trading policies do not limit
your right to transfer such shares. You should carefully review our insider trading policies prior to transferring any shares and discuss with our legal department if any such restrictions apply to
you. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=9,SEQ=27,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=447952,FOLIO='25',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_26"> </A>
<BR>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Federal Income Tax Consequences.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You should refer to Section 20 of this Offer to Exchange for a discussion of the U.S.
federal income tax consequences of the Stock Grants, Cash Consideration and the Old Grants tendered for exchange, as well as the consequences of accepting or rejecting a Stock Grant and the Cash
Consideration in the offer. If you are a resident of the United States, but are also subject to the tax laws in another country, you should be aware that there may be other tax and social insurance
consequences that may apply to you. We strongly recommend that you consult with your own advisors to discuss the consequences to you of the offer. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Tax Consequences Outside the United States.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If you are subject to tax in Canada, you should refer to Section 21 for a
discussion of the income tax consequences of the offer, as well as the consequences of accepting or rejecting a Stock Grant and the Cash Consideration. If you are subject to the tax laws in another
country, you should be aware that there may be other tax and social insurance consequences that may apply to you. We strongly recommend that you consult with your own advisors to discuss the
consequences to you of the offer. </FONT></P>

<P><FONT SIZE=2><I>Section 10. Information Concerning RCM; Information About the Offer  </I></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We are a premier provider of business and technology solutions designed to enhance and maximize the performance of
our customers through the adaptation and deployment of advanced information technology and engineering services. We are an innovative leader in the design, development and delivery of these services
to a variety of industries. Our offices are located throughout North America, including major metropolitan centers. We provide a diversified and extensive range of service offerings and deliverables.
Our portfolio of Information Technology services includes e-Business, Enterprise Management, Enterprise Application Integration and Supply Chain. Our portfolio of Engineering services focuses on
Engineering Design, Technical Support and Project Management and Implementation. Our Commercial Services business unit provides Healthcare contract professionals as well as Clerical and Light
Industrial temporary personnel. We provide our services to clients in banking and finance, healthcare, insurance, aerospace, pharmaceutical, telecommunications, utility, technology, manufacturing,
distribution and government sectors. We believe that the breadth of services we offer fosters long-term client relationships, affords cross-selling opportunities and minimizes our dependence on any
single technology or industry sector. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the year ended December 31, 2002, approximately 60% of our total revenues were derived from IT services, 30% from engineering services and the remaining 10% from commercial
services. We have executed a regional strategy to better leverage our consulting services offering. We sell and deliver our services through a network of 37 branch offices located in selected regions
throughout North America. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand
for IT consulting services has continued the decline that commenced in early 2000 after several years of rapid growth. The decline in sales along with a decline in operating
income of certain branch offices has resulted in goodwill impairment charges for each of the three years in the period ended December 31, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
principal executive offices are located at 2500 McClellan Avenue, Suite 350, Pennsauken, NJ, 08109 and our telephone number is (856) 486-1777. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information About the Offer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Offer Documents contain all the terms and conditions of the offer and refer you to documents
containing information about us. We ask that you read in full the Offer
Documents and the documents referred to therein before using the following resources, which are available to provide you with information about the offer: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Offer to Exchange E-Mail Hotline at </FONT><FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2>; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Offer to Exchange Telephone Hotline at (856) 486-1777, ext. 131. Ask for Gini DiBartolomeo. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=10,SEQ=28,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=561631,FOLIO='26',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<A NAME="page_kq1337_1_27"> </A>
<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
hotlines cannot assist you in making a decision about whether or to what extent to participate in the offer or provide you with counseling or information beyond that which is
included in the Offer Documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, if you want additional copies of the Offer Documents, you may contact Gini DiBartolomeo, RCM Technologies, Inc., 2500 McClellan Avenue, Suite 350, Pennsauken, NJ, 08109, </FONT> <FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT
SIZE=2>, (856) 486-1777, ext. 131. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please
note, </FONT><FONT SIZE=2><I>no one at RCM is authorized to give you advice about whether you should participate in the offer</I></FONT><FONT SIZE=2>. We recommend that you
evaluate the current market price of our common stock, among other factors, before deciding whether to tender any of your Old Grants. You must make your own decision on whether to tender Old Grants.
For questions regarding tax implications or other investment-related questions, you should talk to your own legal counsel, accountant and/or financial advisor. </FONT></P>

<P><FONT SIZE=2><I>Section 11. Interests of Directors and Officers; Transactions and Arrangements Concerning the Old Grants  </I></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A list of our directors and executive officers is attached to this Offer to Exchange as Schedule B. As of September 30, 2003, our executive officers and directors
as a group beneficially owned Old Grants under our Stock Plans as follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="83%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="57%" ALIGN="LEFT"><FONT SIZE=1><B>Name of the Stock Plan<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Shares issuable<BR>
upon exercise of<BR>
Old Grants<BR>
owned by<BR>
directors and<BR>
executive officers</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Percentage of<BR>
Shares subject to<BR>
all Old Grants<BR>
outstanding</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>RCM Technologies, Inc. 1992 Incentive Stock Option Plan</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2>160,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2><BR>
RCM Technologies, Inc. 1994 Nonemployee Director Stock Option Plan</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
40,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2><BR>
Amended and Restated RCM Technologies, Inc. 1996 Executive Stock Plan</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
830,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
62</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2><BR>
RCM Technologies, Inc. 2000 Employee Stock Incentive Plan</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2><BR>
Total</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
1,030,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
78</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below shows the number and percentage of shares of our common stock subject to Old Grants beneficially owned as of September 30, 2003, by our directors and our executive
officers. As of September 30, 2003, there were 10,647,247 shares of our common stock outstanding, and as of September 30, 2003, there were 1,328,273 shares subject to issuance under Old Grants. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="86%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="60%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="22%" ALIGN="CENTER"><FONT SIZE=1><B>Shares Underlying Old<BR>
Grants Owned</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>Percentage of<BR>
Outstanding Old Grants</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2>Leon Kopyt</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2>750,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>56</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2><BR>
Stanton Remer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2><BR>
90,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2><BR>
Brian Delle Donne</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2><BR>
50,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2><BR>
Norman S. Berson</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2><BR>
70,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2><BR>
Robert B. Kerr</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2><BR>
70,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2><BR>
David Gilfor</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="60%"><FONT SIZE=2><BR>
All current directors and executive officers as a group (6 persons)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="RIGHT"><FONT SIZE=2><BR>
1,030,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
78</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=11,SEQ=29,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=510840,FOLIO='27',FILE='DISK005:[03PHI7.03PHI1337]KQ1337B.;13',USER='OALBERT',CD='30-SEP-2003;14:11' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_ks1337_1_28"> </A> </FONT> <FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no transactions in any Old Grants that were effected during the sixty days prior to and including September 30, 2003 by any of our directors or executive officers. </FONT></P>

<P><FONT SIZE=2><I>Section 12. Status of Old Grants Acquired in the Offer  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Old Grants eligible for exchange in the offer have been issued under the 1992 Plan, the 1994 Plan, the 1996 Plan and the 2000 Plan. We will issue the Stock
Grants under the 2000 Plan. No Stock Grants will be issued under the 1992 Plan, 1994 Plan or 1996 Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Old
Grants acquired in the offer will be cancelled upon acceptance, and the shares of our common stock subject to the Old Grants will be returned to the pool of shares eligible for grant
under the applicable Stock Plans. To the extent shares are not issued as Stock Grants in the offer, such shares will be available for future awards to employees, directors and other eligible
participants of each Stock Plan, as appropriate, without further stockholder action, except as required by applicable law or the rules of The Nasdaq National Market or any other securities quotation
system or any stock exchange on which our shares are then quoted or listed. </FONT></P>


<P><FONT SIZE=2><I>Section 13. Accounting Consequences of the Offer  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current accounting standards, we will recognize compensation expense for the replacement of fixed stock option awards in connection with the issuance of the
Stock Grants and payment of the Cash Consideration. The compensation cost for the Stock Grants is measured as the quoted market price of the stock on the measurement date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounting
standards in this area may change. If they change and such change would subject us to variable or other accounting compensation charges, we may modify the offer as necessary
to ensure the intended accounting treatment or, if we cannot appropriately modify the offer, we may terminate the offer. If the change occurs after the completion of the offer, we may have to comply
with the changed variable accounting treatment, which could adversely affect our operating results in future periods. </FONT></P>

<P><FONT SIZE=2><I>Section 14. Legal Matters; Regulatory Approvals  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not aware of any license or regulatory permit that appears to be material to our business that might be adversely affected by the offer, or of any approval
or other action by any government or governmental, administrative or regulatory authority or agency, domestic or foreign, that would be required for the acquisition or ownership of our options as
contemplated herein. Should any such approval or other action be required, we presently contemplate that we will seek such approval or take such other action. We cannot assure you that any such
approval or other action, if needed, could be obtained or what the conditions imposed in connection with such approvals would entail or whether the failure to obtain any such approval or other action
would result in adverse consequences to our business. Our obligation under the offer to accept tendered Old Grants and to issue Stock Grants and pay Cash Consideration in exchange therefore is subject
to the conditions described in Section 7 of this Offer to Exchange. </FONT></P>

<P><FONT SIZE=2><I>Section 15. Extension of the Offer; Termination; Amendment; Notice of Extension, Termination or Amendment  </I></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expressly reserve the right, in our sole discretion, at any time and from time to time, and regardless of whether any event listed in Section 7 has occurred or
is deemed by us to have occurred, to extend the period of time during which the offer is open and thereby delay the acceptance for exchange and cancellation of any tendered Old Grants by giving oral
or written notice of such extension to the eligible employees and directors or making a public announcement thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
also expressly reserve the right, in our reasonable judgment, prior to the expiration time, to terminate or amend the offer and to postpone our acceptance and cancellation of any
tendered Old </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=30,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=593517,FOLIO='28',FILE='DISK005:[03PHI7.03PHI1337]KS1337A.;10',USER='SMENEZE',CD='30-SEP-2003;14:08' -->
<A NAME="page_ks1337_1_29"> </A>
<BR>

<P><FONT SIZE=2>Grants
upon the occurrence of any of the events listed in Section&nbsp;7, by giving oral or written notice of such termination or postponement to you or by making a public announcement thereof. Our
reservation of the right to delay our acceptance and cancellation of Old Grants tendered for exchange is limited by Rule&nbsp;13e-4(f)(5) promulgated under the Securities Exchange Act of 1934, as
amended, which requires that we must either pay the consideration offered or return the tendered grants promptly after termination or withdrawal of the offer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to compliance with applicable law, we further reserve the right, in our discretion, and regardless of whether any event listed in Section&nbsp;7 has occurred or is deemed by us
to have occurred, to amend the offer in any respect, including, without limitation, by decreasing or increasing the consideration offered in the offer to eligible employees and directors or by
decreasing or increasing the number of options being sought in the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we decide to take any of the following actions, we will give you notice or make a public announcement of the action: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Increase
or decrease in the amount of consideration offered for the options eligible for exchange in the offer;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Decrease
in the number of options eligible for exchange in the offer; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Increase
in the number of options eligible for exchange in the offer by an amount that exceeds 2% (two percent) of the shares issuable upon exercise of the options eligible
for exchange in the offer immediately prior to the increase. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments
to the offer may be made at any time and from time to time by public announcement of the amendment. In the case of an extension, the announcement must be issued no later than
9:00 a.m., Eastern time, on the next business day after the last previously scheduled or announced expiration time. Any public announcement made through the offer will be disseminated promptly to
option holders in a manner reasonably designated to inform option holders of the change. Without limiting the manner in which we may choose to make a public announcement, except as required by
applicable law, we have no obligation to publish, advertise or otherwise communicate any such public announcement other than by making a press release to a national newswire service, posting a notice
on our website or sending an e-mail to all eligible employees and directors stating the details of the amendment to the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we materially change the terms of the offer or the information concerning the offer, or if we waive a material condition of the offer, we will extend the offer to the extent required
by Rules 13e-4(d)(2), 13e-4(e)(3) and 13e-4(f)(1)(ii) under the Securities Exchange Act of 1934, as amended. The minimum period during which an offer must remain open following material changes in the
terms of the offer or information concerning the offer will depend on the facts and circumstances, including the relative materiality of such terms or information, except in the case of a change in
price or a change in number of options sought, which requires that ten business days remain in the offer period following the announcement of the change. </FONT></P>

<P><FONT SIZE=2><I>Section&nbsp;16. Fees and Expenses  </I></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not pay any fees or commissions to any broker, dealer or other person for soliciting tenders of options pursuant to the offer. </FONT></P>

<P><FONT SIZE=2><I>Section&nbsp;17. Additional Information  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Offer to Exchange is part of a Tender Offer Statement on Schedule TO that we have filed with the SEC. This Offer to Exchange does not contain all of the
information contained in the Schedule TO and the exhibits to the Schedule TO. We recommend that you review the Schedule TO, </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=31,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=397382,FOLIO='29',FILE='DISK005:[03PHI7.03PHI1337]KS1337A.;10',USER='SMENEZE',CD='30-SEP-2003;14:08' -->
<A NAME="page_ks1337_1_30"> </A>
<BR>

<P><FONT SIZE=2>including
its exhibits, the Offer Documents, and the following materials that we have filed with the SEC before making a decision on whether to tender your Old Grants for exchange in the offer: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Annual Report on Form 10-K and amendment No. 1 thereto on Form 10-K/A for our fiscal year ended December 31, 2002;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2003;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2003;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
definitive proxy statement on Schedule 14A relating to our 2002 Annual Meeting of Stockholders, filed with the SEC on April 25, 2003; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Current Reports on Form 8-K dated August 6, 2003, April 30, 2003 and January 27, 2003. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
filings and our other annual, quarterly and current reports, proxy statements and other documents filed with the SEC may be examined, and copies may be obtained, at: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Public Reference Room of the SEC at the SEC's principal offices located at: </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>450
Fifth Street, NW<BR>
Washington, DC 20549; and </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
SEC's website at </FONT><FONT SIZE=2><I>www.sec.gov</I></FONT><FONT SIZE=2>. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please
call the SEC at (202) 942-7040, or see its website, for further information about the operation of the Public Reference Room. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
person to whom a copy of this Offer to Exchange is provided may obtain a copy of any or all of the documents to which we have referred you, other than exhibits to such documents
(unless such exhibits are specifically incorporated by reference into such documents) at no cost, by writing to us at RCM Technologies, Inc., 2500 McClellan Avenue, Suite 350, Pennsauken, NJ, 08109,
Attention: Gini DiBartolomeo, e-mailing us at: </FONT><FONT SIZE=2><I>optionexchange@rcmt.com </I></FONT><FONT SIZE=2>or calling us at: (856) 486-1777, ext. 131. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
you read the foregoing documents, you may find some inconsistencies in information from one document to another. If you find inconsistencies between the documents, or between a
document and this Offer to Exchange, you should rely on the statements made in the most recent document. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information contained in this Offer to Exchange about us should be read together with the information contained in the documents to which we have referred you. </FONT></P>

<P><FONT SIZE=2><I>Section&nbsp;18. Financial Information  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial information included in our annual report on Form 10-K for the fiscal year ended December 31, 2002 and our quarterly reports on Form 10-Q for the
quarters ended March 31, 2003
and June 30, 2003, in addition to such reports, are incorporated herein by reference and are available for review on the SEC's website at </FONT><FONT SIZE=2><I>http://www.sec.gov  </I></FONT><FONT SIZE=2>and on our website at </FONT><FONT
SIZE=2><I>www.rcmt.com</I></FONT><FONT SIZE=2>. See "Additional Information" in Section&nbsp;17 of this Offer to Exchange for instructions
on how you can otherwise obtain copies of our SEC filings, including filings that contain our financial statements. Our Summary Financial Information is set forth in Schedule C to this Offer to
Exchange. </FONT></P>

<P><FONT SIZE=2><I>Section&nbsp;19. Forward-Looking Statements; Miscellaneous  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Offer to Exchange and our SEC reports referred to above include "forward-looking statements." When used in this Offer to Exchange, the words "anticipate,"
"believe," "estimate," "expect," "intend" and "plan" as they relate to us or our management are intended to identify these forward-looking statements. All statements by us regarding our expected
future financial position and operating results, our business strategy, our financing plans and expected capital requirements, forecasted trends relating to our services or the markets in which we
operate and similar matters are </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=32,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=798293,FOLIO='30',FILE='DISK005:[03PHI7.03PHI1337]KS1337A.;10',USER='SMENEZE',CD='30-SEP-2003;14:08' -->
<A NAME="page_ks1337_1_31"> </A>
<BR>

<P><FONT SIZE=2>forward-looking
statements. The documents we filed with the SEC, including our annual report on Form 10-K, as amended, for the fiscal year ended December 31, 2002, and our quarterly reports on Form
10-Q for the quarters ended March 31, 2003 and June 30, 2003, discuss some of the risks that could cause our actual results to differ from those contained or implied in the forward-looking statements. </FONT></P>

<P><FONT SIZE=2><I>Section&nbsp;20. Material U.S. Federal Income Tax Consequences  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general summary of the material U.S. federal income tax consequences applicable to the tender and exchange of options pursuant to the offer and
the issuance of the Stock Grants and payment of the Cash Consideration. This discussion is based on the U.S. Internal Revenue Code, the relevant legislative history, Treasury Regulations thereunder
and administrative and judicial interpretations thereof as of the date of the offer, all of which are subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax
consequences (including, but not limited to, any state and local taxes) that may be relevant to you in light of your particular circumstances, nor is it applicable in all respects to all employees and
directors, including our international employees and directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible
employees and directors who are subject to taxation in countries other than the United States, whether by reason of their nationality, residence or otherwise, should consult
with their individual tax advisors as to the consequences of their participation in the offer, but should be aware that the following rules apply to resident aliens (who may or may not also be taxed
in their home jurisdictions). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Income Tax Consequences of the Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The applicable U.S. tax principles are summarized as follows: </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You will recognize taxable income upon the issuance of the Stock Grants to you. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
amount of such taxable income will equal the fair market value of the shares granted to you on the Stock Grant Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will generally be allowed a business expense deduction for the amount of the taxable income recognized by you in connection with the issuance of the shares of common stock subject to
your Stock Grants. Section&nbsp;162(m) of the Internal Revenue Code of 1986, as amended (the "Code"), however, may limit the deduction that can be claimed by us in certain circumstances. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Sale of Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon a sale or other taxable disposition of the shares subject to your Stock Grants, you
will recognize a taxable capital gain equal to the amount realized upon the sale or disposition of the shares less the fair market value of those shares at the time you recognized taxable income with
respect to those shares. The fair market value of the shares is unknown as of the date of this Offer to Exchange because the fair market value will not be set until the shares are issued. A capital
loss will result to the extent the amount realized upon such sale is less than such fair market value. The gain or loss will be long-term if the shares are held for more than one year prior to the
sale. The capital gain holding period for the shares subject to the Stock Grants will commence at the time the Stock Grants are issued to you. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Income Tax Consequences of the Cash Consideration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The applicable U.S. tax principles are summarized as follows: </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of Cash Consideration:</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You will recognize taxable income on the date that the Cash Consideration is payable to you. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
amount of such taxable income will equal the value of the Cash Consideration that is payable to you. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=33,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=162470,FOLIO='31',FILE='DISK005:[03PHI7.03PHI1337]KS1337A.;10',USER='SMENEZE',CD='30-SEP-2003;14:08' -->
<A NAME="page_ks1337_1_32"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will generally be allowed a business expense deduction for the amount of the taxable income recognized by you in connection with the payment of the Cash Consideration.
Section&nbsp;162(m) of the Code, however, may limit the deduction that can be claimed by us in certain circumstances. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding Obligations for Stock Grants and Cash Consideration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In connection with the issuance to our employees of any
Stock Grants in this Offer, we are required to withhold applicable federal, state and local income and employment taxes. However, since the Cash Consideration is payable on the same date as you
receive the Stock Grants, we will withhold from the Cash Consideration the amount necessary to satisfy our tax withholding obligations. In the event that the Cash Consideration exceeds these
obligations, any excess will be paid directly to you. In the event that the Cash Consideration does not fully satisfy these obligations, you will be required to make a cash payment to us for the
additional amount. If you are a non-employee member of our board of directors, you are solely responsible to the appropriate taxing authorities for payment of your tax obligations arising in
connection with the offer. You will be required to pay taxes on the value of the shares subject to the Stock Grants and the Cash Consideration. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect on Incentive Stock Options Not Tendered.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If you hold Old Grants that are incentive stock options under the U.S.
federal tax laws, we do not believe that the offer will affect the tax status of those incentive stock options if you decide not to participate in the offer with respect to those incentive stock
options. However, the U.S. Internal Revenue Service (the "IRS") may characterize the offer as a "modification" of those incentive stock options, even if you do not tender them in the offer. A
successful assertion by the IRS that your incentive stock options were modified would extend the period you would have to hold the shares purchased under those options in order to qualify all of the
gain on a subsequent sale of those shares as long-term capital gain. Such an extended holding period for long-term capital gain would require that the sale of the shares not take place until the later
of (i) two years from the date of the deemed modification of your incentive stock options or (ii) one year from the date of the option exercise for those shares. In addition, such a deemed
modification may also cause a portion of your incentive stock options to be treated as nonqualified stock options upon exercise by reason of the dollar limitation imposed under the U.S. federal tax
laws on the initial exercisability of incentive stock options. Under that limitation, the maximum dollar amount of shares for which an incentive stock option may first become exercisable in any
calendar year, including the calendar year in which an Old Grant is deemed to have been modified and thereby treated as newly granted, cannot exceed $100,000, measured on the basis of the fair market
value of the shares on the grant date of the option or, if later, at the time of any deemed modification of that grant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>We recommend that you consult your own tax advisor with respect to the U.S. federal, state and local tax consequences of participating in the offer, and any
foreign tax laws that may apply to you.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>If you choose not to exchange any of your Old Grants, we also recommend that you consult with your own tax advisor to determine the tax consequences applicable to
the exercise of the Old Grants you do not exchange and to the subsequent sale of the shares purchased under those grants.</B></FONT></P>

<P><FONT SIZE=2><I>Section&nbsp;21. Material Income Tax Consequences and Certain Other Considerations for Employees Who Are Tax Residents of Canada  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the tax consequences of the cancellation of Old Grants in exchange for Stock Grants and Cash Consideration for individuals subject
to tax in Canada. This summary is general in nature and does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be
applicable in all respects to all categories of option holders. This summary is based on Canadian federal tax law. Different tax consequences may be applicable under provincial tax law. Please note
that tax laws change frequently and occasionally on a retroactive basis. If you are a citizen or resident of another country for local law purposes, the information contained in this summary may not
be applicable to you. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=34,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=294909,FOLIO='32',FILE='DISK005:[03PHI7.03PHI1337]KS1337A.;10',USER='SMENEZE',CD='30-SEP-2003;14:08' -->
<A NAME="page_ks1337_1_33"> </A>
<BR>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canadian Income Tax Consequences of the Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The applicable Canadian tax principles are summarized as follows: </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of Stock Grants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You will recognize taxable income upon the issuance of the Stock Grants to you. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
amount of such taxable income will equal the fair market value of the shares granted to you on the Stock Grant Date. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of Shares.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You will be subject to tax when you subsequently sell the shares issued to you under the Stock Grant. The
taxable amount will be one-half of the difference between the sale proceeds and the adjusted cost basis of the shares (generally, the fair market value on the date of issuance of the shares), less any
brokerage fees. Income tax will be assessed on the taxable income at your marginal income tax rate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One-half
of any loss arising on the sale of the shares (including any brokerage fees) may be deducted from any taxable capital gain for the year, the previous three taxation years, or
any subsequent year. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of Cash Consideration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You will recognize taxable income upon the payment of the Cash Consideration to you. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
amount of such taxable income will equal the value of the Cash Consideration. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding and Reporting.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Your employer will report the income recognized upon issuance of the Stock Grants and payment of
the Cash Consideration to the CCRA. A copy of the T4 form containing this information will be provided to you prior to the last day of February in the year following the year in which you receive the
Stock Grants and Cash Consideration. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your
employer is not required to withhold income tax or social insurance contributions on any portion of the taxable benefit from the exchange, Stock Grants or the sale of shares. You
will be responsible for paying any and all taxes due. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You are permitted to sell shares acquired upon exercise of a Stock Grant through the designated
broker appointed by us, provided that the sale of shares takes place outside of Canada through the facilities of the stock exchange on which the shares are listed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>We have not authorized any person to make a recommendation on our behalf as to whether you should tender or not tender your options through the offer. You should
rely only on the information in this Offer to Exchange and the other Offer Documents to which we have referred you. We have not authorized anyone to give you any information or to make any
representations in connection with the offer other than the information and representations contained in the Offer Documents. If anyone makes any recommendation or representation to you or gives you
any information, you must not rely upon that recommendation, representation or information as having been authorized by us.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>RCM
Technologies, Inc. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>September&nbsp;30,
2003 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=35,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=5910,FOLIO='33',FILE='DISK005:[03PHI7.03PHI1337]KS1337A.;10',USER='SMENEZE',CD='30-SEP-2003;14:08' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ku1337_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ku1337_schedule_a_form_of_share_award_agreement"> </A>
<A NAME="toc_ku1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE&nbsp;A    <BR>    <BR>    FORM OF SHARE AWARD AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This SHARE AWARD AGREEMENT, dated as
of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the "Date of Grant"), is delivered by RCM Technologies,&nbsp;Inc.
(the
"Company"), to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the "Grantee"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>RECITALS
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors of the Company (the "Board") approved a voluntary option exchange program (the "Exchange Program") pursuant to which all current employees and
directors of the Company and its subsidiaries who live in or work in the United States or Canada and are subject to taxation in such countries and who were granted options to purchase the Company's
common stock under the Company's stock option plans with per share exercise prices of $7.00 or higher (the "Old Grants") were offered the opportunity to cancel such outstanding Old Grants in exchange
for (i)&nbsp;the grant of shares of the Company's common stock under the RCM Technologies,&nbsp;Inc. 2000 Equity Stock Incentive Plan (the "Plan") based on the exchange ratios set forth in the
Exchange Program, and (ii)&nbsp;cash consideration equal to 0.67 multiplied by the fair market value of the shares subject to the Stock Grants on the date of grant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;The
Grantee tendered Old Grants in the Exchange Program in exchange for the right to receive a number of shares of common stock of the Company based on the exchange
ratios set forth in the Exchange Program. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The
Company has accepted such Old Grants and has agreed to grant the Grantee such shares in exchange for the Grantee's Old Grants. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;The
Grantee accepts the shares of common stock of the Company in exchange for the Grantee's Old Grants, on the terms and conditions, set forth in this Agreement and in
the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;The
Plan provides for the award of shares of the common stock of the Company in accordance with the terms and conditions of the Plan. A copy of the Plan is attached. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as follows: </FONT></P>

<P><FONT SIZE=2>1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Stock Grant.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions set forth in this Agreement, the Plan and the Exchange Program, the
Company hereby grants the Grantee&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of common stock of the Company, subject to the restrictions on transferability set forth below and in the Plan ("Restricted Stock").
Shares of
Restricted Stock may not be transferred by the Grantee or subjected to any security interest until the shares have become transferable pursuant to this Agreement and the Plan. </FONT></P>

<P><FONT SIZE=2>2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Vesting and Nonassignability of Restricted Stock.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
shares of Restricted Stock shall be fully vested on the Date of Grant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;During
the period between the Date of Grant and the earlier of: (i)&nbsp;the first anniversary of the Date of Grant or (ii)&nbsp;the occurrence of a Change of
Control (as defined in the Plan), (the "Restriction Period"), the Restricted Stock may not be assigned, transferred, pledged or otherwise disposed of by the Grantee. Any attempt to assign, transfer,
pledge or otherwise dispose of the shares during the Restriction Period, and the levy of any execution, attachment or similar process upon the shares, shall be null, void and without effect. </FONT></P>

<P><FONT SIZE=2>3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Issuance of Certificates.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Stock
certificates representing the Restricted Stock will not be transferred to the Grantee until the Restricted Stock becomes transferable. During the Restriction
Period, the Grantee shall receive any cash dividends with respect to the shares of Restricted Stock, may vote the shares of Restricted Stock </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A-1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=36,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=690880,FOLIO='A-1',FILE='DISK005:[03PHI7.03PHI1337]KU1337A.;6',USER='NLUCCA',CD='30-SEP-2003;14:47' -->
<A NAME="page_ku1337_1_2"> </A>
<BR>

<P><FONT SIZE=2>and
may participate in any distribution pursuant to a plan of dissolution or complete liquidation of the Company. In the event of a dividend or distribution payable in stock or other property or a
reclassification, split up or similar event during the Restriction Period, the shares or other property issued or declared with respect to the Restricted Stock shall be subject to the same terms and
conditions relating to the shares to which they relate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;When
the Restricted Stock becomes transferable, a certificate representing the shares shall be issued to the Grantee, free of the restrictions on transferability under
Section&nbsp;2 of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;The
obligation of the Company to deliver shares upon the lapse of the transferability restriction of the Restricted Stock shall be subject to all applicable laws, rules,
and regulations and such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations. </FONT></P>

<P><FONT SIZE=2>4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Grant Subject to Plan Provisions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This grant is made pursuant to the Plan, the terms of which are incorporated herein by
reference, and in all respects shall be interpreted in accordance with the Plan. The grant is subject to interpretations, regulations and determinations concerning the Plan established from time to
time by the Committee (as defined in the Plan) in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i)&nbsp;rights and obligations with respect to
withholding taxes, (ii)&nbsp;the registration, qualification or listing of the shares, (iii)&nbsp;changes in capitalization of the Company, and (iv)&nbsp;other requirements of applicable law.
The Committee shall have the authority to interpret and construe the grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. </FONT></P>

<P><FONT SIZE=2>5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Withholding.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Grantee shall be required to pay to the Company, or make other arrangements satisfactory to the Company to
provide for the payment of, any federal, state, local or other taxes that the Company is required to withhold with respect to the grant of the Restricted Stock. </FONT></P>

<P><FONT SIZE=2>6.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;No Employment or Other Rights.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This grant shall not confer upon the Grantee any right to be retained by or in the employ or
service of the Company and shall not interfere in any way with the right of the Company to terminate the Grantee's employment or service at any time. The right of the Company to terminate at will the
Grantee's employment or service at any time for any reason is specifically reserved. </FONT></P>

<P><FONT SIZE=2>7.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Assignment by the Company.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The rights and protections of the Company hereunder shall extend to any successors or assigns of
the Company and to the Company's parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without the Grantee's consent. </FONT></P>

<P><FONT SIZE=2>8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Applicable Law.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The validity, construction, interpretation and effect of this instrument shall be governed by and construed
in accordance with the laws of the State of New Jersey, without giving effect to the conflicts of laws provisions thereof. </FONT></P>

<P><FONT SIZE=2>9.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Notice.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the
President at 2500 McClellan Avenue, Ste. 350, Pennsauken, N.J. 08109 and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Company, or to
such other address as the Grantee may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above,
registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A-2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=37,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=1010515,FOLIO='A-2',FILE='DISK005:[03PHI7.03PHI1337]KU1337A.;6',USER='NLUCCA',CD='30-SEP-2003;14:47' -->
<A NAME="page_ku1337_1_3"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and attest this instrument, and the Grantee has placed his or her signature hereon, effective as of the
Date of Grant. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>RCM TECHNOLOGIES,&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
Attest:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
hereby accept the grant of Restricted Stock described in this Agreement, and I agree to be bound by the terms of the Plan and this Agreement. I hereby further agree that all of the
decisions and determinations of the Committee shall be final and binding. I further understand and agree that I am receiving the Restricted Stock in exchange for my Old Grants under the Exchange
Program. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Grantee</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Date</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>A-3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=38,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=6275,FOLIO='A-3',FILE='DISK005:[03PHI7.03PHI1337]KU1337A.;6',USER='NLUCCA',CD='30-SEP-2003;14:47' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_kw1337_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kw1337_schedule_b_information_concern__sch03748"> </A>
<A NAME="toc_kw1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE B    <BR>    <BR>    INFORMATION CONCERNING THE EXECUTIVE OFFICERS<BR>  AND DIRECTORS OF RCM TECHNOLOGIES, INC.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The executive officers and directors of RCM Technologies, Inc. and their positions and offices as of September 30, 2003 are set forth in the following table: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="37%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="60%" ALIGN="LEFT"><FONT SIZE=1><B>Position<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>Leon Kopyt</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Chairman of the Board, President and Chief Executive Officer</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>Stanton Remer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Chief Financial Officer</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>Brian Delle Donne</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Chief Operating Officer</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>Norman S. Berson</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Director</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>Robert B. Kerr</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>David Gilfor</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%"><FONT SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
address of each director and executive officer is: c/o RCM Technologies, Inc., 2500 McClellan Avenue, Suite 350, Pennsauken, NJ 08109. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>B-1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=39,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=641897,FOLIO='B-1',FILE='DISK005:[03PHI7.03PHI1337]KW1337A.;4',USER='MKEANE',CD='30-SEP-2003;12:37' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ky1337_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ky1337_schedule_c_summary_financial_s__sch02513"> </A>
<A NAME="toc_ky1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE C    <BR>    <BR>    SUMMARY FINANCIAL STATEMENTS<BR>  OF RCM TECHNOLOGIES, INC.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth summary financial information for the periods specified: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><I>Summary Financial Information (In thousands, except for earnings per share data)  </I></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Years Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Six Months Ended June&nbsp;30,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2003</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2><B>Income Statement</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Revenues</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>234,739</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>186,651</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>89,222</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>105,869</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>62,576</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>46,665</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>24,200</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>22,199</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income before litigation charge, other expense, income taxes, goodwill amortization, and unusual charges</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,611</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>12,087</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>6,823</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5,131</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Litigation charge</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(9,718</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Other (expense) income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(2,268</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(155</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>58</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income before income taxes and goodwill amortization and impairment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>16,343</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>2,214</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>6,859</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5,189</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income taxes</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>6,936</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>623</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,579</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1,894</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income before goodwill amortization and impairment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>9,407</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1,591</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>4,280</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,295</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Goodwill impairment and intangible asset amortization, net of taxes</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(28,143</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(24,760</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(6</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income from continuing operations before extraordinary items</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,776</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>25,103</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>4,274</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,289</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>(Loss) gain from discontinued operations, net of taxes</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(20</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(967</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(16</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Net (loss) income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(18,756</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(24,136</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>4,258</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,289</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Earnings per share:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Basic and Diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="45%"><FONT SIZE=2>Income before goodwill amortization and impairment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>.89</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>.15</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>.40</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>.31</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="45%"><FONT SIZE=2>Goodwill amortization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(.51</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="45%"><FONT SIZE=2>Goodwill impairment, restructuring and unusual charges</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(2.16</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(2.34</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="45%"><FONT SIZE=2>Income from continuing operations</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(1.78</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(2.37</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>.40</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>.31</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="45%"><FONT SIZE=2>Discontinued operations</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(.09</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="45%"><FONT SIZE=2>Net loss</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(1.78</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(2.28</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>.40</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>.31</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="50%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>As of December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>As of June&nbsp;30,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="50%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2003</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2><B>Balance Sheet</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Working capital</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>10,977</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>16,516</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>14,040</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>18,694</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>58,843</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>47,247</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>50,059</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Non-current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>72,313</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>42,730</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>44,851</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Total assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>131,156</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>89,977</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>129,899</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>94,909</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Current liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>47,866</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>30,731</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>42,287</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>31,365</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Non-current liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Total liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>47,866</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>30,731</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>42,287</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>31,365</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Shareholders' equity</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>83,290</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>59,246</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>87,610</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>63,544</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2>Book value per share</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>7.88</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5.58</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>8.27</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5.97</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2><BR>
Ratio of earnings to fixed charges</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
N/A</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
N/A</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
14.6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
57.0</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>C-1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=40,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2",CHK=1003574,FOLIO='C-1',FILE='DISK005:[03PHI7.03PHI1337]KY1337A.;7',USER='MKEANE',CD='30-SEP-2003;12:37' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03PHI1337_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_kg1337_1">Exhibit 99(a)(1)</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ki1337_1">TABLE OF CONTENTS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kk1337_1">RCM TECHNOLOGIES, INC.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_kk1337_2">SUMMARY TERM SHEET</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_km1337_1">QUESTIONS AND ANSWERS ABOUT THE OFFER</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ko1337_1">CERTAIN RISKS OF PARTICIPATING IN THE OFFER</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ko1337_2">RISKS RELATED TO THE OFFER</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ko1337_3">TAX-RELATED RISKS FOR INDIVIDUALS SUBJECT TO U.S. TAXES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ko1337_4">TAX-RELATED RISKS FOR RESIDENTS OF CANADA</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ko1337_5">TAX-RELATED RISKS FOR INDIVIDUALS SUBJECT TO FOREIGN TAX</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kq1337_1">THE OFFER</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ku1337_1">SCHEDULE A FORM OF SHARE AWARD AGREEMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kw1337_1">SCHEDULE B INFORMATION CONCERNING THE EXECUTIVE OFFICERS AND DIRECTORS OF RCM TECHNOLOGIES, INC.</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ky1337_1">SCHEDULE C SUMMARY FINANCIAL STATEMENTS OF RCM TECHNOLOGIES, INC.</A></FONT><BR>
<!-- SEQ=,FILE='QUICKLINK',USER=MBARTAS,SEQ=,EFW="2119563",CP="RCM TECHNOLOGIES",DN="2" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(2)
<SEQUENCE>4
<FILENAME>a2119563zex-99_a2.htm
<DESCRIPTION>EXHIBIT 99(A)(2)
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03PHI1337_3">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="la1337_exhibit_99(a)(2)"> </A>
<A NAME="toc_la1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;99(a)(2)    <BR>    </B></FONT></P>

<P><FONT SIZE=2>September
30, 2003 </FONT></P>

<P><FONT SIZE=2>Dear
</FONT><FONT SIZE=2><B>[Option Holder]</B></FONT><FONT SIZE=2>: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due
to today's difficult market conditions, many of our employees and directors hold options to purchase our common stock with an exercise price that significantly exceeds the current
and recent market price of our common stock. Because our Board of Directors (the "Board") recognizes that the outstanding stock options under the RCM Technologies, Inc. 1992 Incentive Stock Option
Plan, the RCM Technologies, Inc. 1994 Nonemployee Director Stock Option Plan, the Amended and Restated RCM Technologies, Inc. 1996 Executive Stock Plan, and the RCM Technologies, Inc. 2000 Employee
Stock Incentive Plan (collectively, the "Plans") may not provide the performance incentives we want for our valued employees and directors, the Board has considered several alternatives that will
provide employees and directors with a potential benefit that over time may have greater value potential. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly,
I am happy to announce that our Board has approved a program to offer all of our employees and directors who currently hold outstanding stock options under the Plans with an
exercise price of $7.00 or higher per share (the "Old Grants") the opportunity to exchange the Old Grants for shares of our common stock (the "Stock Grants"), plus a cash payment (the "Cash
Consideration"). We intend to grant the Stock Grants and pay the Cash Consideration pursuant to the terms and conditions described in the enclosed Offer to Exchange. If you have multiple stock option
grants that qualify as Old Grants and you wish to tender the options subject to such grants, you must tender each individual option in its entirety, partial tenders will not be accepted. You also have
the right to choose not to exchange any of your Old Grants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
offer is scheduled to expire at 5:00 p.m., Eastern time, on November 13, 2003, but may be extended. We expect November 14, 2003 to be the date on which we will cancel properly
tendered Old Grants, unless the offer is extended. We will issue the Stock Grants, and pay the Cash Consideration, promptly after expiration of the offer. Regardless of whether you determine to
participate in the offer, we do not intend to grant any new options to any employee or director prior to November 14, 2003. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to exchange your Old Grants for Stock Grants and Cash Consideration, you must be employed by or providing service to us or to one of our subsidiaries on the date you agree to
tender your Old Grants and the date we issue the Stock Grants and provide for the payment of the Cash Consideration. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
shares of our common stock issued as the Stock Grants will be fully vested and nonforfeitable on the date of grant, but will be subject to a transferability restriction that provides
that the shares cannot be transferred until (i) the first anniversary of the date of grant of the Stock Grants or (ii) earlier if we experience a change in control, subject to any subsequent
applicable securities restrictions and our policies regarding restrictions on the sale of shares of our common stock. You will not be required to pay anything to receive the Stock Grants since your
Old Grants will be considered the consideration for the Stock Grants and the Cash Consideration. You will be required to recognize as taxable income the aggregate fair market value of the shares
subject to the Stock Grants on the date of grant and the value of the Cash Consideration. The exchange ratio for the number of shares subject to the Old Grants that will be converted to shares subject
to your Stock Grants is determined by taking 150% of the value of the Old Grants based on a Black-Scholes valuation (the specific exchange ratios are set forth in the Offer to Exchange). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cash Consideration is a cash payment by us to you that is intended to offset a portion of your taxes that result from your receipt of the Stock Grants and the Cash Consideration. The
amount of Cash Consideration that is payable to you will be equal to the aggregate fair market value of the number of shares subject to your Stock Grants on the date of grant multiplied by 0.67. </FONT></P>

<P><FONT SIZE=2><B>Our Board makes no recommendation as to whether you should accept the offer or refrain from the offer with respect to your options. You must make your own decision whether to
tender your options and should consult with your own advisors as to the consequences of participating or not participating  </B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2119563",CP="RCM TECHNOLOGIES",DN="3",CHK=334590,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]LA1337A.;5',USER='MKEANE',CD='30-SEP-2003;13:08' -->
<A NAME="page_la1337_1_2"> </A>
<BR>

<P><FONT SIZE=2><B> in the offer (including, but not limited to, any applicable tax consequences). Your decision will have no effect on your job evaluation or continued employment or service with
us.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
records indicate that you hold the following options to purchase our common stock with an exercise price per share of at least $7.00 per share: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="69%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="10%" ALIGN="CENTER"><FONT SIZE=1><B>Grant&nbsp;Date<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="CENTER"><FONT SIZE=1><B>Expiration&nbsp;Date</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER"><FONT SIZE=1><B>Number<BR>
of Shares<BR>
Subject&nbsp;to<BR>
Grant</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="10%" ALIGN="CENTER"><FONT SIZE=1><B>Exercise<BR>
Price</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="23%" ALIGN="CENTER"><FONT SIZE=1><B>Exchange&nbsp;Ratio</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="16%" ALIGN="CENTER"><FONT SIZE=1><B>New&nbsp;Shares<BR>
If&nbsp;Accepted</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
exchange any or all of the options listed above, you will be required to properly complete, sign and fax the attached "Election Form" to (856) 486-2123 or personally deliver, send by
registered mail or overnight courier it to Gini DiBartolomeo, RCM Technologies, Inc., 2500 McClellan Avenue, Suite 350, Pennsauken, NJ, 08109, no later than the expiration time of the offer. E-mail
delivery will not be accepted. If we receive the attached document from you after the expiration time of the offer, your acceptance of the offer will be rejected, you will not be eligible to
participate in the offer, and your currently outstanding options will continue to remain in effect. If you elect to participate in the offer and agree to the exchange and cancellation of your options,
this election is irrevocable after the expiration time of the offer and cannot be changed by you at a later date. You may, however, revoke your election to participate in the offer at any time prior
to the expiration time of the offer by completing and returning to us, as described above, the "Notice to Withdraw from the Offer" form. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please
be certain to read all of the enclosed documents in their entirety, including this letter, the Election Form and the Offer to Exchange (including Summary Term Sheet, Questions and
Answers About the Offer, Certain Risks of Participating in the Offer and the details of the offer in Section 1 through Section 21). If you have any questions about the offer, please contact Gini
DiBartolomeo at (856) 486-1777, ext. 131. We thank you for your continued efforts. </FONT></P>

<P><FONT SIZE=2>Sincerely, </FONT></P>

<P><FONT SIZE=2>Leon
Kopyt<BR>
President &amp; CEO </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=2,EFW="2119563",CP="RCM TECHNOLOGIES",DN="3",CHK=31897,FOLIO='2',FILE='DISK005:[03PHI7.03PHI1337]LA1337A.;5',USER='MKEANE',CD='30-SEP-2003;13:08' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03PHI1337_3">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_la1337_1">Exhibit 99(a)(2)</A></FONT><BR>
</UL>
<!-- SEQ=,FILE='QUICKLINK',USER=MBARTAS,SEQ=,EFW="2119563",CP="RCM TECHNOLOGIES",DN="3" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(3)
<SEQUENCE>5
<FILENAME>a2119563zex-99_a3.htm
<DESCRIPTION>EXHIBIT 99(A)(3)
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03PHI1337_4">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99(a)(3)  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lc1337_rcm_technologies,_inc._offer_t__rcm02399"> </A>
<A NAME="toc_lc1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>RCM TECHNOLOGIES, INC.    <BR>    <BR>    OFFER TO EXCHANGE OPTIONS    <BR>    <BR>    ELECTION FORM    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have received the letter from Leon Kopyt and the Offer to Exchange (including the Summary Term Sheet, Questions and Answers About the Offer, Certain Risks of
Participating in the Offer and the details of the Offer in Section 1 through Section 21) provided to me regarding the program (the "Offer") that provides me with the opportunity to exchange my
currently outstanding options to purchase the common stock of RCM Technologies, Inc. ("RCM") with an exercise price per share of at least $7.00, for shares of RCM common stock (the "Stock Grants") and
cash consideration (the "Cash Consideration). I understand that I cannot transfer the shares of RCM common stock subject to the Stock Grants until (i) the first anniversary of the date of grant of the
Stock Grant or (ii) earlier if RCM experiences a change in control, subject to any subsequent applicable securities restrictions and RCM's policies regarding restrictions on the sale of shares of its
common stock. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
understand that there are a number of risks and considerations relevant to my decision to accept or reject the Offer, and hereby irrevocably agree that the following option grants (the
"Tendered Options") shall be cancelled and exchanged for the Stock Grants that will be granted, and the Cash Consideration that will become payable, to me no sooner than November 14, 2003, upon the
terms and subject to the conditions of the Offer: </FONT></P>

<P><FONT SIZE=2><B><I>In the space under "Tender Option" please insert YES for each stock option grant you would like to tender in connection with the Offer, and NO for each stock option grant you
do not want to tender (if you are not tendering any stock option grants, you should not return this form).</I></B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="91%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="34%" ALIGN="LEFT"><FONT SIZE=1><B>Tender Option<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER"><FONT SIZE=1><B>Grant<BR>
Date</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Expiration<BR>
Date</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER"><FONT SIZE=1><B>Number<BR>
of Shares<BR>
Underlying<BR>
Option</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>Exercise<BR>
Price</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Exchange<BR>
Ratio</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>New<BR>
Shares<BR>
Underlying<BR>
Stock Grant</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="34%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
represent and warrant that I have full power and authority to offer the Tendered Options as part of the Offer, and that, when and to the extent these options are accepted for exchange
by RCM, the options will be free and clear of all security interests, liens, restrictions, charges, encumbrances, conditional sales agreements or other obligations relating to the sale or transfer
thereof (other than pursuant to the applicable option agreement) and the options will not be subject to any adverse claims. I agree to fully indemnify RCM in the event I or anyone else makes any claim
against RCM with respect to the Tendered Options. Upon request, I will execute and deliver any additional documents deemed by RCM to be necessary or desirable to complete the exchange of the Tendered
Options pursuant to the Offer. </FONT></P>

<P><FONT SIZE=2>I
understand and acknowledge the following terms and conditions of the Offer: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;I
am not required to offer and exchange any of the options I designated above in the Offer. However, I understand that as long as I have elected to offer to exchange any
options, I must tender all of the options subject to that individual grant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;All
Tendered Options properly tendered by me on or before the expiration time of the Offer, which is expected to be 5:00 p.m., Eastern time, November 13, 2003, and not
properly withdrawn by the expiration time will, if accepted by RCM, be exchanged for Stock Grants and Cash Consideration upon the terms and subject to the conditions of the Offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;Upon
RCM's acceptance of Tendered Options, such options will be cancelled. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;The
Stock Grants will be issued, and the Cash Consideration will become payable, no sooner than November 14, 2003, or such later date determined by RCM, and the Stock
Grants will </FONT></P>

</UL>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2119563",CP="RCM TECHNOLOGIES",DN="4",CHK=548060,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]LC1337A.;7',USER='MKEANE',CD='30-SEP-2003;13:08' -->
<A NAME="page_lc1337_1_2"> </A>
<UL>
<BR>

<P><FONT SIZE=2>not
be subject to any forfeiture restrictions; however, the shares subject to the Stock Grants cannot be transferred until (i) the first anniversary of the date of grant of the Stock Grant or (ii)
earlier if RCM experiences a change in control, subject to any subsequent applicable securities restrictions and RCM's policies regarding restrictions on the sale of shares of its common stock. All
Stock Grants will be subject to the terms and conditions of a share award agreement between RCM and me, a copy of which I will receive promptly after the expiration of the Offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;I
must be an employee or director of RCM or one of its subsidiaries on the date I tender the Tendered Options and the date the Stock Grants are issued, and the Cash
Consideration is payable, in order to receive the Stock Grants and the Cash Consideration. If I terminate employment or service prior to the expiration of the Offer, my participation in the Offer will
be automatically cancelled and I will not receive any Stock Grants or Cash Consideration and the Tendered Options will remain outstanding in accordance with their existing terms and conditions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;By
tendering the Tendered Options, I accept the terms and conditions of the Offer. RCM's acceptance for exchange of the Tendered Options will constitute a binding
agreement between RCM and me upon the terms and subject to the conditions of the Offer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;Under
the circumstances set forth in the Offer to Exchange, RCM may terminate or amend the Offer and postpone its acceptance and cancellation of any Tendered Options,
and in any such event, the Tendered Options delivered herewith, but not accepted for exchange, will be returned to me. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;All
options that I choose not to tender for exchange or that are not accepted for exchange shall remain outstanding and retain their current exercise price and vesting
schedule. If I attempt to tender options for part of a specific grant, but not all outstanding options for such grant, my tender of such grant will be rejected. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;RCM
has advised me to consult with my own advisors as to the consequences of participating or not participating in the Offer, including the tax consequences of such
participation or non-participation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;I
agree that all questions as to the number of shares subject to options to be accepted for exchange, and the validity, form, eligibility (including time of receipt)
and acceptance for exchange of any tender of options will be determined by RCM in its sole discretion, which determinations shall be final and binding on all parties. RCM reserves the right to reject
any or all tenders of options RCM determines not to be in proper form or unlawful to accept. RCM also reserves the right to waive any of the conditions of the Offer and any defect or irregularity in
the tender of any particular options, and RCM's interpretation of the terms of the Offer, will be final and binding on all parties. No tender of options will be deemed to be properly made until all
defects and irregularities have been cured or waived. Unless waived, any defects or irregularities in connection with tenders must be cured within such time as RCM shall determine. Neither RCM nor any
other person is or will be obligated to give notice of any defects or irregularities in tenders, and no person will incur any liability for failure to give any such notice. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;The
Stock Grants and Cash Consideration causes me to recognize taxable income. RCM may withhold from the Cash Consideration the amount necessary to satisfy RCM's tax
withholding obligation. To the extent the Cash Consideration does not cover RCM's tax withholding obligation, I will pay RCM the amount to cover such deficiency. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;I
agree to all of the terms and conditions of the Offer. </FONT></P>
</UL>
<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Optionee Signature</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Date</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="47%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Optionee Name (Please Print)<BR></FONT>
</TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=2,EFW="2119563",CP="RCM TECHNOLOGIES",DN="4",CHK=355307,FOLIO='2',FILE='DISK005:[03PHI7.03PHI1337]LC1337A.;7',USER='MKEANE',CD='30-SEP-2003;13:08' -->
<A NAME="page_lc1337_1_3"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation Instructions: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
participate in the Offer, you must submit to RCM a properly completed and executed original of this Election Form (or a facsimile of it), on or before 5:00 p.m., Eastern time, on
November 13, 2003, in one of the following ways: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
preferred method is for you to submit the Election Form by fax to Gini DiBartolomeo, RCM Technologies, Inc., at the following fax number: (856) 486-2123.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alternatively,
you may submit the Election Form by personal delivery (but not by intra-company mail) or registered mail or overnight courier addressed to: </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies, Inc.<BR>
2500 McClellan Avenue, Suite 350<BR>
Pennsauken, N.J. 08109 </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may confirm receipt of your Election Form with Gini DiBartolomeo by e-mail at </FONT><FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2>. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
RCM extends the Offer, this Election Form must be received by Gini DiBartolomeo by the date and time of the extended expiration of the Offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>The method by which you submit the Election Form is at your discretion and risk, and the submission will be deemed made only when actually received by RCM. In all
cases, you should allow sufficient time to ensure timely submission. We intend to confirm the receipt of your Election Form within 24 hours; if you have not received such a confirmation of receipt, it
is your responsibility to ensure that your Election Form has been received by us.</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=3,EFW="2119563",CP="RCM TECHNOLOGIES",DN="4",CHK=898335,FOLIO='3',FILE='DISK005:[03PHI7.03PHI1337]LC1337A.;7',USER='MKEANE',CD='30-SEP-2003;13:08' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03PHI1337_4">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lc1337_1">RCM TECHNOLOGIES, INC. OFFER TO EXCHANGE OPTIONS ELECTION FORM</A></FONT><BR>
<!-- SEQ=,FILE='QUICKLINK',USER=MBARTAS,SEQ=,EFW="2119563",CP="RCM TECHNOLOGIES",DN="4" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(4)
<SEQUENCE>6
<FILENAME>a2119563zex-99_a4.htm
<DESCRIPTION>EXHIBIT 99(A)(4)
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03PHI1337_5">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99(a)(4)  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le1337_rcm_technologies,_inc._offer_t__rcm03222"> </A>
<A NAME="toc_le1337_1"> </A>
<BR></FONT><FONT SIZE=2><B>RCM TECHNOLOGIES,&nbsp;INC.    <BR>    <BR>    OFFER TO EXCHANGE OPTIONS    <BR>    <BR>    NOTICE TO WITHDRAW FROM THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Instructions:</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Notice to Withdraw From the Offer relates to the stock option exchange offer (the "Offer") described in
the RCM Technologies,&nbsp;Inc. ("RCM") Offer to Exchange, dated September&nbsp;30, 2003 (the "Offer to Exchange"). To withdraw from the Offer, you must properly complete, sign and submit to us
this Notice to Withdraw from the Offer no later than 5:00&nbsp;p.m., Eastern time, on November&nbsp;13, 2003, the expiration time of the Offer, in accordance with the Offer Documents (defined
below) and Instructions attached to this Notice to Withdraw from the Offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before
completing, signing and dating this Notice to Withdraw from the Offer, please read the Instructions attached to this Notice to Withdraw from the Offer and make sure that you have
received, read and understand: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The
Offer to Exchange;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>The
letter from Leon Kopyt dated September&nbsp;30, 2003;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>The
Election Form; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>This
Notice to Withdraw from the Offer (together, as they may be amended from time to time, constituting the "Offer Documents"). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decision to Withdraw from the Offer:</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;By signing below, I acknowledge that I have received the Offer Documents, that I have
previously signed and returned my Election Form, in which I elected to participate in the Offer, and that I have decided to reject participation in the Offer. I understand that: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>I
am withdrawing my acceptance of the Offer;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>I
will not receive the stock award issuable to, or cash consideration payable to, me pursuant to the Offer and I will keep the old option grants that I previously tendered, which will
continue to be governed by the stock option plan under which they were granted and by the existing stock option agreements between RCM and me; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>I
may change this decision to withdraw from the Offer, and once again elect to participate in the Offer, by submitting to RCM a properly completed and executed original Election Form
(or a facsimile of it), on or before 5:00&nbsp;p.m., Eastern time, on November&nbsp;13, 2003. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>I WITHDRAW MY TENDER AND REJECT THE OFFER TO EXCHANGE ANY OLD OPTION GRANTS FOR THE STOCK GRANT AND CASH CONSIDERATION.</B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Optionee Signature</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Optionee Name (Please Print)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Date</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2119563",CP="RCM TECHNOLOGIES",DN="5",CHK=803741,FOLIO='blank',FILE='DISK005:[03PHI7.03PHI1337]LE1337A.;7',USER='NLUCCA',CD='30-SEP-2003;14:51' -->
<A NAME="page_le1337_1_2"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le1337_instructions_to_the_notice_to___ins04401"> </A>
<A NAME="toc_le1337_2"> </A>
<BR></FONT><FONT SIZE=2><B>INSTRUCTIONS TO THE NOTICE TO WITHDRAW FROM THE OFFER    <BR>    <BR>    FORMING PART OF THE TERMS AND CONDITIONS OF THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Submission of Notice to Withdraw from the Offer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
withdraw from the Offer, you must submit to RCM Technologies,&nbsp;Inc. ("RCM") a properly completed and executed original of this Notice to Withdraw from the Offer (or a facsimile
of it), on or before 5:00&nbsp;p.m., Eastern time, on November&nbsp;13, 2003, in one of the following ways: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
preferred method is for you to submit the Notice to Withdraw from the Offer by fax to Gini DiBartolomeo, RCM Technologies,&nbsp;Inc., at the following fax number:
(856)&nbsp;486-2123.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alternatively,
you may submit the Notice to Withdraw from the Offer by personal delivery (but not by intra-company mail) or registered mail or overnight courier addressed
to: </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>Gini
DiBartolomeo<BR>
RCM Technologies,&nbsp;Inc.<BR>
2500 McClellan Avenue, Suite 350<BR>
Pennsauken, N.J. 08109 </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
may confirm receipt of your Notice to Withdraw from the Offer with Gini DiBartolomeo by e-mail at </FONT> <FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2>. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
RCM extends the Offer, this Notice to Withdraw from the Offer must be received by Gini DiBartolomeo by the date and time of the extended expiration of the Offer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>The method by which you submit the Notice to Withdraw from the Offer is at your discretion and risk, and the submission will be deemed made only when actually
received by RCM. In all cases, you should allow sufficient time to ensure timely submission. We intend to confirm the receipt of your Notice to Withdraw from the Offer within 24&nbsp;hours; if you
have not received such a confirmation of receipt, it is your responsibility to ensure that your Notice to Withdraw from the Offer has been received by us.</I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
submitting a Notice to Withdraw from the Offer, you have withdrawn all of your tendered options from the Offer. You may change your mind, however, and re-elect to
participate in the Offer up until the expiration time in accordance with the terms and conditions of the Offer to Exchange. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>If you wish to change your election with respect only to particular eligible option grants, you should complete and submit a new Election Form instead of this
Notice to Withdraw from the Offer form.</B></FONT><FONT SIZE=2> As explained in the Offer to Exchange and your Election Form, you may select individual eligible option grants to be tendered for
exchange. You do not have to tender all your option grants, but for each individual grant you do choose to tender, you must tender the entire unexercised portion. Upon receipt
of such a new, properly filled out, signed and dated Election Form, any previously submitted Notice to Withdraw from the Offer will be disregarded and will be considered replaced in full by the new
Election Form. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
it is our intent to send you a confirmation of receipt of this Notice to Withdraw from the Offer, by signing this Notice to Withdraw from the Offer (or a facsimile of it), you
waive any right to receive any confirmation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Other Information on This Notice to Withdraw from the Offer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to signing this Notice to Withdraw from the Offer, you must print your name and indicate the date on which you signed. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=2,EFW="2119563",CP="RCM TECHNOLOGIES",DN="5",CHK=587347,FOLIO='2',FILE='DISK005:[03PHI7.03PHI1337]LE1337A.;7',USER='NLUCCA',CD='30-SEP-2003;14:51' -->
<A NAME="page_le1337_1_3"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Requests for Assistance or Additional Copies.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
ask that you read the Offer Documents in full prior to using the resources listed below. The following resources are available to provide you with information about the Offer: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Offer to Exchange E-Mail Hotline at </FONT><FONT SIZE=2><I>optionexchange@rcmt.com</I></FONT><FONT SIZE=2>; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Our
Offer to Exchange Telephone Hotline at (856)&nbsp;486-1777, ext. 131. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
hotlines cannot assist you in making a decision about whether or to what extent to participate in the Offer or provide you with counseling or information beyond that which is
included in the Offer Documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
may also request additional copies of the Offer to Exchange or this Notice to Withdraw from the Offer by contacting Gini DiBartolomeo, RCM Technologies,&nbsp;Inc., 2500 McClellan
Avenue, Suite 350, Pennsauken, N.J. 08109; e-mail: </FONT><FONT SIZE=2><I>optionexchange@rcmt.com </I></FONT><FONT SIZE=2>or telephone number (856)&nbsp;486-1777, ext. 131.
Copies will be furnished promptly at RCM's expense. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Additional Documents to Read.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Be
sure to read all of the Offer Documents, including the Offer to Exchange and the letter from Leon Kopyt dated September&nbsp;30, 2003, before deciding to withdraw from the Offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Important Tax Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you are subject to taxes in the United States, you should refer to Section&nbsp;20 of the Offer to Exchange, which contains important U.S. federal income tax information. If you are
subject to taxes in Canada, you should refer to Section&nbsp;21 of the Offer to Exchange which contains important tax information that may apply to you. </FONT><FONT SIZE=2><B>You should consult
with your own tax advisor with respect to the applicable tax consequences that apply to you in connection with your withdrawal of participation in the Offer and the tax consequences applicable to the
exercise of the grants, and subsequent disposition of the shares, you do not exchange in the Offer.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=3,EFW="2119563",CP="RCM TECHNOLOGIES",DN="5",CHK=591172,FOLIO='3',FILE='DISK005:[03PHI7.03PHI1337]LE1337A.;7',USER='NLUCCA',CD='30-SEP-2003;14:51' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03PHI1337_5">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_le1337_1">RCM TECHNOLOGIES, INC. OFFER TO EXCHANGE OPTIONS NOTICE TO WITHDRAW FROM THE OFFER</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_le1337_2">INSTRUCTIONS TO THE NOTICE TO WITHDRAW FROM THE OFFER FORMING PART OF THE TERMS AND CONDITIONS OF THE OFFER</A></FONT><BR>

<!-- SEQ=,FILE='QUICKLINK',USER=MBARTAS,SEQ=,EFW="2119563",CP="RCM TECHNOLOGIES",DN="5" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SUBMISSION>
