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<SEC-DOCUMENT>0001003297-03-000372.txt : 20030923
<SEC-HEADER>0001003297-03-000372.hdr.sgml : 20030923
<ACCEPTANCE-DATETIME>20030923064027
ACCESSION NUMBER:		0001003297-03-000372
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20030923
ITEM INFORMATION:		
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20030923

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRO DEX INC
		CENTRAL INDEX KEY:			0000788920
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-MEDICAL, DENTAL & HOSPITAL EQUIPMENT & SUPPLIES [5047]
		IRS NUMBER:				841261240
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14942
		FILM NUMBER:		03905101

	BUSINESS ADDRESS:	
		STREET 1:		650 S. TAYKOR AVENUE
		STREET 2:		SUITE 20-A
		CITY:			LOUISVILLE
		STATE:			CO
		ZIP:			80027
		BUSINESS PHONE:		3034438165

	MAIL ADDRESS:	
		STREET 1:		1401 WALNUT STREET
		STREET 2:		SUITE 540
		CITY:			BOULDER
		STATE:			CO
		ZIP:			80302
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>pdex8k1.htm
<TEXT>
<html>

<head>


<title>Pro-Dex 8-K</title>



</head>

<body lang=EN-US link=blue vlink=purple>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p align="center"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</b></p>

<p align=center style='text-align:center'><b>&nbsp;Washington,

 D.C.&nbsp; 20549</b></p>





<p align=center style='text-align:center'><b>FORM 8-K</b></p>

<p align="center"><b>CURRENT REPORT</b></p>



<p align=center style='text-align:center'>Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</p>



<p align="center"><b>September 23, 2003<br>
</b>Date of Report <br>
(Date of earliest event reported)</p>



<p align=center style='text-align:center'><b>PRO-DEX, INC.<br>
</b>(Exact name of registrant as specified in its charter)</p>



<p align="center"><b>COLORADO<br>
</b>(State or other jurisdiction of incorporation)</p>





<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

</b></p>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="761" id="AutoNumber1">
  <tr>
    <td width="412" align="center"> <b>0-14942</b></td>
    <td width="346" align="center"> <b>84-1261240</b></td>
  </tr>
  <tr>
    <td width="412" align="center">(Commission File
No.)&nbsp;&nbsp;</td>
    <td width="346" align="center">(IRS Employer Identification
Number)</td>
  </tr>
</table>

<p align=center style='text-align:center'><b><br>
151 East Columbine Avenue<br>
Santa Ana,  California 92707<br>
</b>(Address of Principal Executive Offices)</p>



<p align=center style='text-align:center'><b>(949) 241-4411<br>
</b>(Registrant's Telephone Number, Including Area Code)</p>



<p align=center style='text-align:center'>&nbsp;</p>



<p align=center style='text-align:center'>&nbsp;</p>

<hr color="#000080">

<b><u><br
clear=all style='page-break-before:always'>
</u></b>

<p>&nbsp;</p>



<p><b><u>Item 7.</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements and
Exhibits</u></b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.</p>



<p align=left style='margin-left:1.75in;text-align:
left;text-indent:-.75in'>99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Press Release dated September 23, 2003.</p>

<p style='margin-top:12.0pt'><b><u>Item
12.</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Results of
Operations and Financial Condition</u></b></p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">The
information in this Form 8-K and the Exhibits attached hereto shall not be
deemed &quot;filed&quot; for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the &quot;Exchange Act&quot;), nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
such a filing. </p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">On September 23, 2003, Pro-Dex, Inc. issued a press release announcing its financial
performance for the period ended June 30, 2003.&nbsp; On that same date, Pro-Dex,
Inc. conducted a conference call concerning its performance for the period
ended June 30, 2003.&nbsp; A copy of the press release is attached to this
Form&nbsp;8-K as Exhibit&nbsp;99.1.</p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;' align="center">2</p>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<p>&nbsp;</p>
<p>&nbsp;</p>


<p align=center style='text-align:center'><b>SIGNATURES</b></p>





<p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</p>





<p>Date:&nbsp; September 23, 2003&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; <b>PRO-DEX, Inc.</b></p>





<p>&nbsp;</p>





<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="761" id="AutoNumber2">
  <tr>
    <td width="325">





<p </p>

    </td>
    <td width="433">By:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/&nbsp;  Patrick Johnson&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;
    <br>
    </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Patrick Johnson<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer</td>
  </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p align="center">3</p>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<p>&nbsp;</p>


<p align=center style='text-align:center'><b>INDEX TO EXHIBITS</b></p>

<p><b>&nbsp;</b></p>

<p>&nbsp;</p>

<p>&nbsp;&nbsp;<b>Exhibit<br>
<u>&nbsp; Number&nbsp; </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Description&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;&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; </u>
</b></p>



<p style='margin-left:1.0in;text-indent:-.75in'>99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Press
Release dated September 23, 2003.</p>



<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>



<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>



<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>



<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>



<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>



<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>



<p style='margin-left:1.0in;text-indent:-.75in' align="center">4</p>



</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>ex99-11.htm
<TEXT>
<html>

<head>


<title>ex99.1 </title>



</head>

<body lang=EN-US link=blue vlink=purple>
<p>&nbsp;</p>

<p><img width=101
height=41 src="pdexlogo.jpg">
&nbsp;<p style='line-height:normal'>&nbsp;<div align="left">
  <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="725" id="AutoNumber1">
    <tr>
      <td width="429">
      <p align="right">Contact:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </td>
      <td width="424">

<p style='line-height:normal'>Patrick
Johnson, President &amp; CEO</td>
    </tr>
    <tr>
      <td width="429">&nbsp;</td>
      <td width="424">

<p style='text-align:justify'>(714)
241-4411</p>

      </td>
    </tr>
    <tr>
      <td width="429">&nbsp;</td>
      <td width="424">

<p style='text-align:justify'>&nbsp;</p>

      </td>
    </tr>
    <tr>
      <td width="429"><b><i><font size="2">For
Immediate Release</font></i></b></td>
      <td width="424">

<p style='text-align:justify'>Jim
White, Investor Relations</p>

      </td>
    </tr>
    <tr>
      <td width="429">&nbsp;</td>
      <td width="424">

<p style='text-align:justify'>Kehoe,
White &amp; Co., Inc.</p>

      </td>
    </tr>
    <tr>
      <td width="429">&nbsp;</td>
      <td width="424">

<p style='text-align:justify'>(562)
437-0655</p>

      </td>
    </tr>
  </table>
</div>

<p style='text-align:justify;line-height:normal'><b>&nbsp;</b></p>

<p>&nbsp;</p>

<p align="center"><b>PRO-DEX, INC. ANNOUNCES IMPROVED FOURTH QUARTER
AND FISCAL 2003 YEAR END FINANCIAL RESULTS</b></p>



<p align="center"><b>SALES INCREASE 14%; EARNINGS INCREASE $0.20 FOR THE YEAR</b></p>



<p style='text-align:justify;text-indent:.5in'><b>SANTA ANA, CA,</b>
September 23, 2003 - PRO-DEX, INC. (NASDAQ: PDEX) today announced financial
results for the quarter and fiscal year ending June 30, 2003.&nbsp; The
Company reported net income for the three months ended June 30, 2003 of
$112,000 or $0.01 per share on a basic and $0.01 per share on a diluted basis,
as compared to a net (loss) of ($712,000) or ($0.08) per share on a basic and
($0.08) per share on a diluted basis, for the three months ended June 30, 2002.&nbsp; Consolidated net sales increased 23% or $627,000
for the three months ended June 30, 2003, compared to the three months ended
June 30, 2002. This represents the Company's seventh
consecutive quarter of increased sales.&nbsp; </p>



<p style='text-align:justify;text-indent:.5in'>For the fiscal
year ended June 30, 2003, the Company reported net income of $133,000 or $0.02
per share on a basic and $0.01 per share on a diluted basis, as compared to a
net (loss) of ($1,566,000) or ($0.18) per share on a basic and ($0.18) per share
on a diluted basis, for the year ended June 30, 2002.&nbsp;
Consolidated net sales increased 14% or $1,464,000 for the year ended
June 30, 2003, compared to the year ended June 30, 2002, due to increased sales
at both of the Company's wholly-owned subsidiaries, Micro Motors, Inc. and
Oregon Micro Systems.&nbsp;&nbsp; </p>



<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Commenting on the Company's financial
performance, Pro-Dex's President and CEO, Patrick Johnson said, &quot;We're very
proud to announce that the fourth quarter and the fiscal year were additional
steps forward in improving the financial performance of the Company.&nbsp; We made
incremental progress every quarter this past fiscal year, increasing our top
line sales and our bottom line profitability.&nbsp; More importantly, the Company
was well positioned as we exited the year to continue the trend of improved
financial performance.&nbsp; Our new order bookings for the fourth quarter were
$4,426,000, generating a near record high backlog and future orders of $5,500,000, up from
$2,800,000 the previous year.&nbsp; In addition, our new order bookings have
remained strong at nearly $2,500,000 for the first two months of the new fiscal
year, indicating that our core business is growing as a direct result of recent
product development efforts.&quot;&nbsp; </p>













<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>At Micro Motors, sales increased 12%, for the year due to continued
increased sales volume of medical product shipments.&nbsp; As a percentage of total
sales, medical products grew 131% over the prior year.&nbsp; In addition, 30% of
Micro Motors' sales came from new products developed in the last fiscal year and
45% came from new products developed in the last two fiscal years.&nbsp; &quot;I think
the composition of Micro's sales last year is a clear indication that our
business model of developing proprietary rotary drive systems for major
healthcare customers is paying off,&quot; stated Mr. Johnson.&nbsp; &quot;We've chartered our
Product Development group with the primary task of creating exclusive and
long-term revenue streams for our manufacturing group.&nbsp; This has produced
incremental sales growth throughout the year and as we manufacture subsequent
runs of these products, we will be looking for increased gross profitability
through increased operational efficiencies,&quot; reported Mr. Johnson.</p>













<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>













<p style='text-align:center;text-autospace:
none'>-more-</p>













<hr color="#000080"><p style="page-break-after:always"></P>



<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Revenue at Oregon Micro Systems (OMS) increased 21% for the year ended
June 30, 2003 compared to the previous year.&nbsp; &quot;While we haven't seen a major
recovery from the semi-conductor industry, our customers in that industry are
starting to replenish their inventory of our products, indicating that the
inventory glut of the past two years has burnt off,&quot; observed Mr. Johnson.&nbsp;
&quot;OMS had strong bookings in the fourth quarter, which continued into the
beginning of this fiscal year with the receipt of a blanket order from a
leading manufacturer of semi-conductor manufacturing equipment for $500,000.&nbsp;
We also spent the year investigating opportunities for OMS outside the
semi-conductor industry, including working on development and manufacturing
projects with Micro Motors.&quot;&nbsp; The Company previously announced that the
production of the Healozone, a revolutionary product developed by Micro Motors
that treats dental cavities with the concentrated delivery of ozone gas, is
being completed in OMS' manufacturing facilities.</p>



<p style='text-align:justify;text-indent:.5in'>The Company's
consolidated gross profit for the three months ended June 30, 2003 increased
118% or $719,000 compared to the same three months in the previous year.&nbsp; For
the year ended June 30, 2003, consolidated gross profit increased $815,000 or
20% due to increased sales at both operating subsidiaries and higher margins at
OMS. Gross profit as a percentage of sales increased to 41% for the year ended
June 30, 2003 compared to 39% for the year ended June 30, 2002 despite the
elevated costs associated with the first production runs for new products at
Micro Motors.</p>



<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Selling, general, and administrative expenses decreased
to $4,609,000 for the year ended June 30, 2003 from $6,235,000 for the year
ended June 30, 2002, a decline of 26%.&nbsp; The decrease is due primarily to
reduced corporate costs of nearly $1,000,000 and a reduction of operating
expenses at OMS.&nbsp; Mr. Johnson stated, &quot;We projected
that we would be able to reduce our corporate operating expenses by nearly a
million dollars and it's encouraging to report that we accomplished those
goals, despite the increased costs associated with recent changes in corporate
governance and regulatory compliance.&nbsp; We also increased our selling expenses
at both Micro Motors and OMS in an effort to grow sales, which makes the 26%
reduction in total expenses that much more impressive.&quot;</p>



<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>For the year ended June 30, 2003, the Company
generated $503,000 in positive cash flow from operating activities compared to
($1,757,000) in negative cash flow generated for the year ended June 30,
2002.&nbsp;&nbsp; During the fiscal year, the Company used this surplus cash flow to
reduce outstanding liabilities and to increase manufacturing capability through
the purchase of new equipment.&nbsp; These activities served to further strengthen
the Company's Balance Sheet as well as increase the operational strength of the
Company.</p>









<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Commenting on the Company's on-going
operations, Mr. Johnson noted, &quot;I think last year's financial performance is
proof positive of a solid turn-around at Pro-Dex and we accomplished those
results not by making short-term cuts, but by focusing on the fundamentals of
the business while crafting a long-term growth strategy for the entire
company.&quot;&nbsp;&nbsp; Addressing the Company's near term prospects, Mr. Johnson said,
&quot;The new fiscal year is already off to a tremendous start and we plan to build
on the momentum that we created with last year's improved performance.&nbsp; With
our current improving backlog and a continued strong bookings rate, I believe
our shareholders should be pleased with our fiscal 2004 operating performance.&quot;
</p>



<p style='text-align:justify;text-indent:.5in'>Investors and
all others are invited to listen to a conference call discussing the fourth
quarter and year end results and fiscal 2004 outlook, today at 4:30 p.m.
Eastern Time. The call will be broadcast over the Internet at
<font color="#0000FF">www.pro-dex.com</font>.&nbsp; An online replay will be
available for 30 days.&nbsp; Additionally, a 48-hour telephone replay will be
accessible by calling (800) 642-1687 for domestic callers and (706) 645-9291
for international callers; conference ID# 2801254.</p>



<p style='text-align:justify;text-indent:.5in'>&nbsp;</p>













<p style='text-align:center;text-autospace:
none'>-more-</p>













<hr color="#000080"><p style="page-break-after:always"></P>



<p style='text-align:justify;text-indent:.5in'>Pro-Dex, Inc., is a California-based
holding company with the following wholly-owned operating subsidiaries: Micro
Motors, Inc., located in Santa Ana, California, manufactures miniature
electric, pneumatic and battery powered rotary drive systems for use in the
high tech medical, dental and industrial industries; and Oregon Micro Systems,
Inc., located in Beaverton, Oregon, manufactures motion control products used
in factory automation and the semiconductor industries. </p>



<p style='text-align:justify;text-indent:.5in'>For more information, visit the
Company's website at <font color="#0000FF"> <u>www.pro-dex.com</u></font>. </p>



<p align="justify"><font size="2">Statements
herein concerning the Company's plans, growth and strategies may include
'forward-looking statements' within the context of the federal securities laws.
Statements regarding the Company's future events, developments and future performance,
as well as management's expectations, beliefs, plans, estimates or projections
relating to the future, are forward-looking statements within the meaning of
these laws. The Company's actual results may differ materially from those
suggested as a result of various factors. Interested parties should refer to
the disclosure concerning the operational and business concerns of the Company
set forth in the Company's filings with the Securities and Exchange Commission.</font></p>





<p align=center style='text-align:center'>(tables follow)</p>





<p align=center style='text-align:center'>&nbsp;</p>





<p align=center style='text-align:center'>&nbsp;</p>





<p align=center style='text-align:center'>&nbsp;</p>

<hr color="#000080"><p style="page-break-after:always"></P>
<p align="center">&nbsp;</p>
<table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="width: 725; border-collapse: collapse; margin-left: -.75pt">
  <tr style="height:15.75pt">
    <td nowrap colspan="4" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" width="711">
    <p class="MsoNormal" align="center" style="text-align:center"><b>
    <font size="2">PRO-DEX,&nbsp;INC.&nbsp;AND&nbsp;SUBSIDIARIES</font></b></td>
  </tr>
  <tr style="height:15.75pt">
    <td nowrap colspan="4" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" width="711">
    <p class="MsoNormal" align="center" style="text-align:center"><b>
    <font size="2">CONSOLIDATED&nbsp;STATEMENTS&nbsp;OF&nbsp;OPERATIONS</font></b></td>
  </tr>
  <tr style="height:15.75pt">
    <td nowrap colspan="4" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" width="711">
    <p class="MsoNormal" align="center" style="text-align:center"><b>
    <font size="2">Years&nbsp;ended&nbsp;June&nbsp;30,&nbsp;2003&nbsp;and&nbsp;2002</font></b></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td nowrap valign="bottom" style="width: 108; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td nowrap valign="bottom" style="width: 38; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td nowrap valign="bottom" style="width: 107; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td valign="top" style="width: 108; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.0pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" align="center"><i><font size="2">2003</font></i></td>
    <td valign="top" style="width: 38; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><i><font size="2">&nbsp;</font></i></td>
    <td valign="top" style="width: 107; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.0pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" align="center"><i><font size="2">2002</font></i></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="width: 108; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td valign="top" style="width: 38; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td valign="top" style="width: 107; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Net&nbsp;sales&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,990,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,526,000&nbsp;</font></td>
  </tr>
  <tr style="height:6.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    Cost&nbsp;of&nbsp;sales&nbsp;(includes&nbsp;rent&nbsp;paid&nbsp;to&nbsp;a&nbsp;director&nbsp;of&nbsp;$62,000&nbsp;in&nbsp;2002)</font></td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,075,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,426,000&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Gross&nbsp;profit&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,915,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,100,000&nbsp;</font></td>
  </tr>
  <tr style="height:9.0pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Operating&nbsp;expenses:&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;710,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;551,000&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General&nbsp;and&nbsp;administrative&nbsp;expenses&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,410,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,650,000&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research&nbsp;and&nbsp;development&nbsp;costs&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,457,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,545,000&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization</font></td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;489,000&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Total&nbsp;operating&nbsp;expenses&nbsp;</font></td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,609,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,235,000&nbsp;</font></td>
  </tr>
  <tr style="height:9.0pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Income&nbsp;(loss)&nbsp;from&nbsp;operations&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;306,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,135,000)</font></td>
  </tr>
  <tr style="height:9.0pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Other&nbsp;income&nbsp;(expense):&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other&nbsp;income,&nbsp;net&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,000&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest&nbsp;(expense)&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(87,000)</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(117,000)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss&nbsp;on&nbsp;disposal&nbsp;of&nbsp;equipment&nbsp;and&nbsp;leasehold&nbsp;improvements&nbsp;</font></td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&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;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(159,000)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Total</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,000)</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(240,000)</font></td>
  </tr>
  <tr style="height:9.0pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    Income&nbsp;(loss)&nbsp;from&nbsp;continuing&nbsp;operations&nbsp;before&nbsp;provision&nbsp;for</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;income&nbsp;taxes&nbsp;(credits)</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,375,000)</font></td>
  </tr>
  <tr style="height:9.0pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Provision&nbsp;for&nbsp;income&nbsp;taxes&nbsp;(credits)</font></td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;122,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,210,000)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Income&nbsp;(Loss)&nbsp;from&nbsp;continuing&nbsp;operations</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,165,000)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    (Loss)&nbsp;on&nbsp;disposal&nbsp;of&nbsp;discontinued&nbsp;operations&nbsp;net&nbsp;of&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">&nbsp;(tax&nbsp;credits)&nbsp;of&nbsp;&nbsp;($267,000)</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(401,000)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Net&nbsp;Income&nbsp;(loss)</font></td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133,000&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,566,000)</font></td>
  </tr>
  <tr style="height:8.25pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal">&nbsp;</td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    Net&nbsp;Income&nbsp;(loss)&nbsp;per&nbsp;share&nbsp;from&nbsp;continuing&nbsp;operations:</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" style="text-indent:10.0pt"><font size="2">Basic&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.02&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.13)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" style="text-indent:10.0pt"><font size="2">
    Diluted&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.01&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.13)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    Net&nbsp;Income&nbsp;(loss)&nbsp;per&nbsp;share&nbsp;from&nbsp;discontinued&nbsp;operations:</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" style="text-indent:10.0pt"><font size="2">Basic&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.05)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" style="text-indent:10.0pt"><font size="2">
    Diluted&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.05)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">Net&nbsp;Income&nbsp;(loss)&nbsp;per&nbsp;share:</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="top" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" style="text-indent:10.0pt"><font size="2">Basic&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.02&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.18)</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal" style="text-indent:10.0pt"><font size="2">
    Diluted&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.01&nbsp;</font></td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.18)</font></td>
  </tr>
  <tr style="height:9.0pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <font size="2">&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    Weighted&nbsp;average&nbsp;shares&nbsp;outstanding&nbsp;-&nbsp;basic</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,743,575&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,787,300&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    <p class="MsoNormal"><font size="2">
    Weighted&nbsp;average&nbsp;shares&nbsp;outstanding&nbsp;-&nbsp;diluted</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,040,893&nbsp;</font></td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,787,300&nbsp;</font></td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="108">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="38">
    </td>
    <td valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right" width="107">
    </td>
  </tr>
  <tr style="height:12.75pt">
    <td nowrap valign="bottom" style="width: 427; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
    </td>
    <td nowrap valign="bottom" style="width: 108; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="right">
    </td>
    <td nowrap valign="bottom" style="width: 38; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="right">
    </td>
    <td nowrap valign="bottom" style="width: 107; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="right">
    </td>
  </tr>
</table>
<p align="center" style="text-align:center">&nbsp;</p>
<hr color="#000080">
<p style="page-break-after:always"></p>
<p align="center" style="text-align:center">&nbsp;</p>
<p align="center" style="text-align:center">&nbsp;</p>
<div align="left">
  <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="width: 725; border-collapse: collapse; margin-left: -.75pt">
    <tr style="height:15.75pt">
      <td nowrap valign="bottom" style="padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" colspan="2" width="724">
      <p class="MsoNormal" align="center" style="text-align:center"><b>
      <font size="2">PRO-DEX,&nbsp;INC.&nbsp;AND&nbsp;SUBSIDIARIES&nbsp;</font></b></td>
    </tr>
    <tr style="height:15.75pt">
      <td nowrap valign="bottom" style="padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" colspan="2" width="724">
      <p class="MsoNormal" align="center" style="text-align:center"><b>
      <font size="2">CONSOLIDATED&nbsp;BALANCE&nbsp;SHEETS</font></b></td>
    </tr>
    <tr style="height:15.75pt">
      <td nowrap valign="bottom" style="padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" colspan="2" width="724">
      <p class="MsoNormal" align="center" style="text-align:center"><b>
      <font size="2">June&nbsp;30,&nbsp;2003</font></b></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="bottom" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><b><font size="2">ASSETS</font></b></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Current&nbsp;assets:</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash&nbsp;and&nbsp;cash&nbsp;equivalents&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;795,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts&nbsp;receivable,&nbsp;net&nbsp;of&nbsp;allowance&nbsp;for&nbsp;doubtful&nbsp;accounts</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;$30,000&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,620,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories,&nbsp;net&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,835,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid&nbsp;expenses&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred&nbsp;taxes</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;770,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;current&nbsp;assets&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,101,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Equipment&nbsp;and&nbsp;leasehold&nbsp;improvements,&nbsp;net&nbsp;</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,040,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Other&nbsp;assets:</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred&nbsp;taxes</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;833,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill&nbsp;</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,110,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;other&nbsp;assets&nbsp;</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,963,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;assets</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  2.25pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;9,104,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><b><font size="2">&nbsp;&nbsp;</font></b></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><b><font size="2">
      LIABILITIES&nbsp;AND&nbsp;SHAREHOLDERS'&nbsp;EQUITY</font></b></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Current&nbsp;liabilities:</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current&nbsp;portion&nbsp;of&nbsp;long&nbsp;term&nbsp;debt&nbsp;to&nbsp;shareholder</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit&nbsp;line&nbsp;payable</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;432,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts&nbsp;payable</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;642,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued&nbsp;expenses</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;349,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income&nbsp;taxes&nbsp;payable&nbsp;</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;current&nbsp;liabilities&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,517,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Long-term&nbsp;debt&nbsp;to&nbsp;a&nbsp;shareholder,&nbsp;net&nbsp;of&nbsp;current&nbsp;portion</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;145,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Total&nbsp;liabilities</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,662,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Commitments&nbsp;and&nbsp;contingencies&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Shareholders'&nbsp;equity:</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;Series&nbsp;A&nbsp;convertible&nbsp;preferred&nbsp;shares;&nbsp;no&nbsp;par&nbsp;value;&nbsp;liquidation&nbsp;preference&nbsp;of&nbsp;</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$3.60&nbsp;per&nbsp;share;&nbsp;10,000,000&nbsp;shares&nbsp;authorized;&nbsp;78,129&nbsp;shares&nbsp;issued&nbsp;and&nbsp;outstanding</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;283,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;Common&nbsp;shares;&nbsp;no&nbsp;par&nbsp;value;&nbsp;50,000,000&nbsp;shares&nbsp;authorized;&nbsp;8,711,600&nbsp;shares&nbsp;issued</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and&nbsp;outstanding,</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,999,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Accumulated&nbsp;deficit&nbsp;</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,789,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,493,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Receivable&nbsp;for&nbsp;stock&nbsp;purchase&nbsp;</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,000)</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;shareholders'&nbsp;equity</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,442,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;liabilities&nbsp;and&nbsp;shareholders'&nbsp;equity</font></td>
      <td width="188" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  2.25pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;9,104,000&nbsp;</font></td>
    </tr>
    <tr style="height:13.5pt">
      <td nowrap valign="bottom" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="bottom" style="width: 603; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td width="188" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
  </table>
</div>
<p align="center" style="text-align:center">&nbsp;</p>
<hr color="#000080">
<p style="page-break-after:always"></p>
<p align="center" style="text-align:center">&nbsp;</p>
<div align="left">
  <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="width: 725; border-collapse: collapse; margin-left: -.75pt">
    <tr style="height:14.25pt">
      <td nowrap colspan="4" valign="bottom" style="padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" width="711">
      <p class="MsoNormal"><b><font size="2">PRO-DEX,&nbsp;INC.&nbsp;AND&nbsp;SUBSIDIARIES&nbsp;</font></b></td>
    </tr>
    <tr style="height:14.25pt">
      <td nowrap colspan="4" valign="bottom" style="padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" width="711">
      <p class="MsoNormal" align="center" style="text-align:center"><b>
      <font size="2">CONSOLIDATED&nbsp;STATEMENTS&nbsp;OF&nbsp;CASH&nbsp;FLOWS</font></b></td>
    </tr>
    <tr style="height:14.25pt">
      <td nowrap colspan="4" valign="bottom" style="padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" width="711">
      <p class="MsoNormal" align="center" style="text-align:center"><b>
      <font size="2">Years&nbsp;ended&nbsp;June&nbsp;30,&nbsp;2003&nbsp;and&nbsp;2002</font></b></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="bottom" style="width: 445; height: 9.0pt; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td nowrap valign="bottom" style="width: 115; height: 9.0pt; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="bottom" style="width: 16; height: 9.0pt; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="bottom" style="width: 118; height: 9.0pt; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; height: 12.75pt; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="top" style="width: 115; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.0pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal" align="center" style="text-align:center"><i>
      <font size="2">2003</font></i></td>
      <td nowrap valign="top" style="width: 16; height: 12.75pt; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal" align="center" style="text-align:center"><i>
      <font size="2">&nbsp;</font></i></td>
      <td nowrap valign="top" style="width: 118; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.0pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal" align="center" style="text-align:center"><i>
      <font size="2">2002</font></i></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td nowrap valign="top" style="width: 115; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="top" style="width: 16; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="top" style="width: 118; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Cash&nbsp;Flows&nbsp;from&nbsp;Operating&nbsp;Activities:&nbsp;</font></td>
      <td nowrap valign="top" style="width: 115; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="top" style="width: 16; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td nowrap valign="top" style="width: 118; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Net&nbsp;Income&nbsp;(loss)</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,566,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Adjustments&nbsp;to&nbsp;reconcile&nbsp;net&nbsp;income&nbsp;(loss)&nbsp;to&nbsp;net&nbsp;cash&nbsp;provided&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;by&nbsp;(used&nbsp;in)&nbsp;operating&nbsp;activities:</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation&nbsp;and&nbsp;amortization&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;375,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;865,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;(Gain)&nbsp;loss&nbsp;on&nbsp;disposal&nbsp;of&nbsp;discontinued&nbsp;operations</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;401,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;Loss&nbsp;on&nbsp;sale&nbsp;of&nbsp;real&nbsp;estate&nbsp;available&nbsp;for&nbsp;sale</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;Loss&nbsp;on&nbsp;disposal&nbsp;of&nbsp;equipment&nbsp;and&nbsp;leasehold&nbsp;improvements</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impairment&nbsp;of&nbsp;intangible&nbsp;assets</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Recovery)&nbsp;Provision&nbsp;for&nbsp;doubtful&nbsp;accounts&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;4,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Non-cash&nbsp;compensation&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Deferred&nbsp;taxes&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;177,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(902,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Changes&nbsp;in:</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)&nbsp;in&nbsp;accounts&nbsp;receivable&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(216,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease&nbsp;in&nbsp;inventories&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease&nbsp;in&nbsp;prepaid&nbsp;expenses&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;3,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Decrease&nbsp;in&nbsp;other&nbsp;assets</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease)&nbsp;in&nbsp;accounts&nbsp;payable&nbsp;and&nbsp;accrued&nbsp;expense&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(584,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(549,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)&nbsp;decrease&nbsp;in&nbsp;income&nbsp;taxes&nbsp;receivable</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;330,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(330,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease)&nbsp;in&nbsp;income&nbsp;taxes&nbsp;payable&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(72,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Net&nbsp;Cash&nbsp;provided&nbsp;by&nbsp;(used&nbsp;in)&nbsp;Operating&nbsp;Activities&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;503,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,757,000)</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Cash&nbsp;Flows&nbsp;From&nbsp;Investing&nbsp;Activities:&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;Proceeds&nbsp;from&nbsp;sale&nbsp;of&nbsp;discontinued&nbsp;operations&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;790,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;875,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;Proceeds&nbsp;from&nbsp;sale&nbsp;of&nbsp;real&nbsp;estate&nbsp;available&nbsp;for&nbsp;sale</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;434,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Proceeds&nbsp;from&nbsp;sale&nbsp;of&nbsp;equipment</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;6,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;Payments&nbsp;related&nbsp;to&nbsp;sale&nbsp;from&nbsp;discontinued&nbsp;operations</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(168,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;Purchases&nbsp;of&nbsp;equipment&nbsp;and&nbsp;leasehold&nbsp;improvements&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(364,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(296,000)</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Net&nbsp;Cash&nbsp;provided&nbsp;by&nbsp;Investing&nbsp;Activities&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;432,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;845,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Cash&nbsp;Flows&nbsp;from&nbsp;Financing&nbsp;Activities:</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;Principal&nbsp;payments&nbsp;on&nbsp;long-term&nbsp;borrowings&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(126,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(188,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;Net&nbsp;borrowings&nbsp;(payments)&nbsp;on&nbsp;line&nbsp;of&nbsp;credit&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(206,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;638,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Common&nbsp;stock&nbsp;repurchases&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&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;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Net&nbsp;Cash&nbsp;provided&nbsp;by&nbsp;(used&nbsp;in)&nbsp;Financing&nbsp;Activities</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(376,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Net&nbsp;Increase&nbsp;(decrease)&nbsp;in&nbsp;Cash&nbsp;and&nbsp;Cash&nbsp;Equivalents&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;559,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(462,000)</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Cash&nbsp;and&nbsp;Cash&nbsp;Equivalents,&nbsp;beginning&nbsp;of&nbsp;period&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;236,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;698,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">&nbsp;</td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">&nbsp;</td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">&nbsp;</td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">&nbsp;</td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Cash&nbsp;and&nbsp;Cash&nbsp;Equivalents,&nbsp;end&nbsp;of&nbsp;period&nbsp;</font></td>
      <td width="115" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  2.25pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;795,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:
  2.25pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;236,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="bottom" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal" align="center" style="text-align:center"><i>
      <font size="2">Supplemental&nbsp;Information</font></i></td>
      <td width="115" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="bottom" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">Cash&nbsp;payments&nbsp;for&nbsp;interest</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110,000&nbsp;</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117,000&nbsp;</font></td>
    </tr>
    <tr style="height:9.0pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <font size="2">&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="top" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="MsoNormal"><font size="2">
      Cash&nbsp;payments&nbsp;(refunds)&nbsp;for&nbsp;income&nbsp;taxes&nbsp;</font></td>
      <td width="115" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(313,000)</font></td>
      <td width="16" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      </td>
      <td width="118" valign="top" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in" align="right">
      <p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;387,000&nbsp;</font></td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="bottom" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td width="115" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in">
      </td>
      <td width="16" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in">
      </td>
      <td width="118" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in">
      </td>
    </tr>
    <tr style="height:12.75pt">
      <td nowrap valign="bottom" style="width: 445; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      </td>
      <td width="115" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in">
      </td>
      <td width="16" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in">
      </td>
      <td width="118" valign="bottom" style="padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in">
      </td>
    </tr>
  </table>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr color="#000080">
<p style="page-break-after:always"></p>
<p align="center">&nbsp;</p>

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