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<SEC-DOCUMENT>0001003297-04-000376.txt : 20040908
<SEC-HEADER>0001003297-04-000376.hdr.sgml : 20040908
<ACCEPTANCE-DATETIME>20040908161236
ACCESSION NUMBER:		0001003297-04-000376
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040908
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20040908
DATE AS OF CHANGE:		20040908

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:		041020880

	BUSINESS ADDRESS:	
		STREET 1:		MICRO MOTORS, INC.
		STREET 2:		151 EAST COLUMBINE
		CITY:			SANTA ANA
		STATE:			CA
		ZIP:			92707
		BUSINESS PHONE:		714-241-4411

	MAIL ADDRESS:	
		STREET 1:		MICRO MOTORS INC.
		STREET 2:		151 EAST COLUMBINE
		CITY:			SANTA ANA
		STATE:			CA
		ZIP:			92707
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>pdex8k.htm
<TEXT>
<html>

<head>


<title>Pro-Dex, Inc. 8-K</title>



</head>

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

<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington,
 D.C.&nbsp; 20549</b></p>
<p align=center style='text-align:center'><b>FORM 8-K</b></p>
<p align="center"><b>&nbsp;</b><font size="3"><b>CURRENT REPORT</b><br>
</font><b>Pursuant to Section 13 OR 15(d) of the<br>
Securities Exchange Act of 1934</b></p>
<p align=center style='text-align:center'>Date of Report <br>
<font size="3">(Date of earliest event reported)</font><b><font size="3"> <br>
September 8, 2004</font></b></p>
<p align=center style='text-align:center'><b>PRO-DEX, INC.<br>
</b>(Exact name of registrant as specified in its charter)</p>
<div align="center">
	<table border="0" width="740" id="table1">
		<tr>
			<td width="274" align="center"><b>COLORADO</b></td>
			<td width="212">
			<p align=center style='text-align:center'><b>0-14942</b></p></td>
			<td align="center"><b>84-1261240</b></td>
		</tr>
		<tr>
			<td width="274" align="center">(State or other</td>
			<td width="212">
			<p align="center">(Commission File Number)</p></td>
			<td align="center"><b>&nbsp;</b>(IRS
Employer </td>
		</tr>
		<tr>
			<td width="274" align="center">&nbsp;jurisdiction of incorporation)</td>
			<td width="212">&nbsp;</td>
			<td align="center">Identification Number)</td>
		</tr>
		<tr>
			<td width="274" align="center">&nbsp;</td>
			<td width="212">
			<p style='text-indent:.5in'>&nbsp;</p></td>
			<td align="center">&nbsp;</td>
		</tr>
	</table>
</div>
<p align=center style='text-align:center'><b>151 East Columbine Avenue<br>
<font size="3">Santa Ana</font></b><font size="3"><b>, California </b></font><b>
<font size="3">92707<br>
</font></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 style='text-autospace:none'>Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions ( <i>see </i>General
Instruction A.2. below): </p>
<p style='text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425) </p>
<p style='text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12) </p>
<p style='text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) </p>
<p style='text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) </p>

&nbsp;<p>&nbsp;</p>
<hr color="#000080"><br clear=all
style='page-break-before:always'>
<p>&nbsp;</p>
<p><b><u>Item 2.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Results of Operations and
Financial Condition. </u></b></p>
<p style='text-align:justify; text-indent:0.5in'><font size="3">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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></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 8, 2004, Pro-Dex, Inc. issued a press release announcing its
financial performance for the twelve months ended June 30, 2004.&nbsp; On that same
date, Pro-Dex, Inc. conducted a conference call concerning its performance for
the twelve months and quarter ended June 30, 2004.&nbsp; A copy of the news release
is attached to this Form&nbsp;8-K as Exhibit&nbsp;99.1.</p>
<p><b><u>Item 9.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Financial Statements and
Exhibits</u></b></p>
<p>&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit
99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Press release dated September 8, 2004 of Pro-Dex Inc.&nbsp;
</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in'>&nbsp;</p>
<hr color="#000080"><br clear=all
style='page-break-before:always'>
<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 8, 2004&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;
<b>PRO-DEX, Inc (Registrant).</b></p>
<p style='margin-left:3.25in'>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><font size="3">&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</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p><hr color="#000080">
<br clear=all
style='page-break-before:always'>
<p align=center style='text-align:center'><b>INDEX TO EXHIBITS</b></p>
<p><b>&nbsp;</b></p>
<p><b>&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b></p>
<p>&nbsp;&nbsp;<b>  Exhibit</b><br>
<b><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 8, 2004.</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>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991.htm
<TEXT>
<html>

<head>


<title>Exhibit 99.1</title>



</head>

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

<p style='line-height:normal' align="left">
&nbsp;<p style='line-height:normal' align="left">
<img width=101
height=41 src="image001.jpg">
	<p style='line-height:normal' align="left">
&nbsp;<table border="0" width="740" id="table1">
		<tr>
			<td width="422">
			<p align="right">Contact:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
			</td>
			<td>Patrick Johnson, President &amp; CEO</td>
		</tr>
		<tr>
			<td width="422"></td>
		<td>(714) 241-4411</td>
		</tr>
		<tr>
			<td width="422">
			<p style='text-align:justify'>&nbsp;</p></td>
			<td>&nbsp;</td>
		</tr>
		<tr>
			<td width="422">
			<p style='text-align:justify'><b><i>For
Immediate Release</i></b></p></td>
			<td>Jim White, Investor Relations</td>
		</tr>
		<tr>
			<td width="422">
			<p style='text-align:justify'>&nbsp;</p></td>
			<td>Kehoe, White &amp; Co., Inc.</td>
		</tr>
		<tr>
			<td width="422">
			<p style='text-align:justify'>&nbsp;</p></td>
			<td>(562) 437-0655</td>
		</tr>
</table>
<p align="center"><b>PRO-DEX, INC. ANNOUNCES CONTINUED STRONG SALES
AND PROFIT GROWTH IN FISCAL 2004 FOURTH QUARTER<br>
&nbsp;AND YEAR END OPERATING RESULTS</b></p>
<p align="center"><b>YEAR END SALES INCREASE 18% FROM PRIOR YEAR<br>
YEAR END EARNINGS INCREASE NEARLY 750% FROM PRIOR YEAR AND 67% FROM
PREVIOUS QUARTER</b></p>
<p style='text-align:justify;text-indent:.5in'><b>SANTA ANA, CA,</b>
September 8, 2004 - PRO-DEX, INC. (NASDAQ: PDEX) today announced financial
results for the fourth quarter and fiscal year ended June 30, 2004.&nbsp; The
Company reported net income for the three months ended June 30, 2004 of
$437,000 or $0.05 per share on a basic and diluted basis, as compared to a net
income of $113,000 or $0.01 per share on a basic and diluted basis, for the
three months ended June 30, 2003.&nbsp; This represents an increase of $324,000 or
286% over the same quarter of the previous year and a sequential increase of
$176,000 or 67% over the third quarter, producing the eighth consecutive
increase in quarterly net profit.&nbsp; The Company
also reported net income for the year ended June 30, 2004 of $1,120,000 or $0.13
per share on a basic and $0.12 per share on a diluted basis, as compared to a
net income of $133,000 or $0.02 per share on a basic and $0.01 per share on a
diluted basis, for the year June 30, 2003.&nbsp; This represents an increase of
$987,000 or 743% over the previous year.</p>
<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Commenting on the Company's financial results,
Pro-Dex's President and CEO, Patrick Johnson said, &quot;The Company's performance
in the fourth quarter was a fitting conclusion to a very successful year.&nbsp; We
grew sales at a purposeful rate throughout the year, concentrating on improving
the product mix, the efficiency of our operations and the pace of our
expenses.&nbsp; As a direct result of that approach to growing the business, we
drove nearly 75% of our incremental sales growth or $1,684,000 to the pre-tax
profit line.&nbsp; We are very proud of this accomplishment and believe that is
proof positive that the strategy we are using to grow the business is both
effective and differentiating.&quot;&nbsp; </p>
<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Consolidated net sales increased $352,000 or 11% to $3,666,000 for the
three months ended June 30, 2004, compared to the three months ended June 30,
2003.&nbsp; On a sequential basis, consolidated sales increased $364,000 or 11% for
the three months ended June 30, 2004 compared to the previous three month
period.&nbsp; This produced the Company's tenth sequential
increase in sales out of the past eleven quarters.&nbsp; For the year ended June 30,
2004, consolidated net sales increased $2,210,000 or 18% to $14,200,000
compared to fiscal 2003. </p>
<p style='text-align:justify;text-indent:.5in'>The Company's
consolidated gross profit for the three months ended June 30, 2004 increased
$626,000 or 47% compared to the same three months in the previous year.&nbsp; For
the year ended June 30, 2004, consolidated gross profit increased $1,890,000 or
38% compared to the same period in the prior year.&nbsp; Gross profit as a
percentage of sales increased significantly to 53% for the three months ended
June 30, 2004 compared to 40% for the three months ended June 30, 2003 and
compared favorably to a gross margin percentage of 48% for the previous quarter.&nbsp;
For the year, gross margin as a percent of sales increased to 48% compared to
41% at the year ended June 30, 2003.&nbsp; </p>
<p style='text-align:justify;text-indent:.5in'>&nbsp;</p>
<hr color="#000080"><br clear=all
style='page-break-before:always'>
<p style='text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='text-align:justify;text-indent:.5in'>&quot;Coming into
fiscal year 2004, we indicated that increasing the gross profitability of the
Company was going to be a priority,&quot; stated Mr. Johnson.&nbsp; &quot;We attacked this
priority from several different approaches.&nbsp; For example, we increased top line
sales, which helped us spread our fixed cost over a bigger revenue base.&nbsp; We
increased sales 72% to the medical device market and 11% to the semi-conductor
market, markets where channels of distribution are more efficient and pricing
is therefore more favorable.&nbsp; We also invested in improving the efficiency of
our operations, which produced immediate improvements in productivity.&nbsp; All of
these efforts resulted in a significant improvement in gross profitability.&quot;
</p>
<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Total operating expenses increased 12%
to $1,247,000 for the three months ended June 30, 2004 from $1,118,000 for the
three months ended June 30, 2003.&nbsp; This increase is attributed to increased
sales, marketing and product development activities aimed at all of the
Company's major market segments.&nbsp; On a sequential basis, operating expenses
increased by only $43,000 or 3.6% compared to the previous quarter, an increase
reasonably expected given the increase in sales for the quarter.&nbsp; For the year
ended June 30, 2004, operating expenses increased $361,000 or 7.8% compared to
prior year, primarily driven by a $333,000 increase in research and development
expenses related to the development of new products.&nbsp; </p>
<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Addressing the Company's on-going operations,
Mr. Johnson noted, &quot;As a small-cap company, Pro-Dex differentiates itself by
not relying on a single invention, a single product, a single technology or a
single market.&nbsp; We are a company that understands its fundamental core
competencies and have successfully identified the best applications of those
core competencies given current market conditions.&nbsp; More importantly, we don't
take current market conditions for granted and are constantly evaluating how we
can create new opportunities given changes in market conditions.&nbsp; Accordingly,
and in a further effort to improve the Company's performance, on June 28, 2004,
we merged our Micro Motors and Oregon Micro Systems subsidiaries into Pro-Dex,
Inc., thereby creating a unified company and eliminating the cost,
inefficiencies and complexities related to the &quot;holding company&quot; business
structure.&nbsp; We believe that this further consolidation of the Company will
strengthen our approach to the market, optimize our use of valuable resources
and maximize the opportunities we see before us.&quot;</p>
<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Commenting on the Company's near term
prospects, Mr. Johnson said, &quot;Our on-going efforts to develop new products and
new customer relationships continue to bear fruit.&nbsp; We have proven that we can
increase top line sales and effectively drive the benefit of those additional
sales to the bottom line.&nbsp; By focusing on the fundamentals of the business, we
have strengthened our balance sheet and positioned the Company well to take
advantage of opportunities that will broaden our technical capabilities and our
ability to create real value for our strategic partners.&nbsp; Based on the
continued success of this business model, we believe that it's reasonable to
expect sales between $3.3 to $3.6 million for the first quarter of fiscal year
2005, and sales between $15 to $17 million for the full fiscal year, excluding
any sales from potential acquisitions.&nbsp; This translates into $0.05 to $0.06
earnings per share in the first quarter compared to $0.02 per share in the
first quarter of fiscal 2003 and between $0.18 to $0.22 earnings per share for
the fiscal year.&nbsp; We are proud of what we accomplished in fiscal 2004 and are
confident it will serve as a foundation for future successes.&quot;&nbsp;&nbsp;&nbsp;
</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 financial results and the outlook for fiscal 2005, today
at 4:30 p.m. Eastern Time. The call will be broadcast over the Internet and can
be accessed by visiting the Company's website at <font color="#0000FF">www.pro-dex.com</font>.&nbsp; An online replay will be
available for 30 days.&nbsp; Additionally, a telephone replay will be available one
hour after the call for 48-hours by dialing (877) 519-4471 for domestic callers
and (973) 341-3080 for international callers; enter conference ID# 5113962.</p>
<p style='text-align:justify;text-indent:.5in'>Pro-Dex Inc.,
with operations in Santa Ana, California and Beaverton Oregon, specializes in
bringing speed to market&nbsp;in the&nbsp;development and manufacture
of&nbsp;technology-based solutions that incorporate embedded motion control and
miniature rotary drive systems, serving the medical, dental, semi-conductor,
and scientific research markets.&nbsp; Pro-Dex's products are found in
hospitals, dental offices, medical engineering labs, scientific research
facilities and high tech manufacturing operations&nbsp;around the world.</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>
<hr color="#000080"><br clear=all
style='page-break-before:always'>
<div align="left">
<table class=MsoNormalTable border=0 cellpadding=0
 style='width:738px;margin-left:4.65pt;border-collapse:collapse'>
	<tr style='height:15.75pt'>
		<td nowrap colspan=2 valign=bottom style='width:736px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p align=center style='text-align:center'><b><font size="2">PRO-DEX, INC. and
  SUBSIDIARIES</font></b></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap colspan=2 valign=bottom style='width:736px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p align=center style='text-align:center'><b><font size="2">BALANCE SHEET</font></b></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap colspan=2 valign=top style='width:736px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p align=center style='text-align:center'><b><font size="2">June 30, 2004</font></b></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='width:101px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p align=center style='text-align:center'><i><font size="2">&nbsp;</font></i></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><b><font size="2">ASSETS</font></b></p></td>
		<td nowrap valign=top style='width:100px;border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Current
  assets:</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Cash and cash equivalents </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">$&nbsp;&nbsp;
  2,070,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Accounts receivable, net of allowance for doubtful </font> </p></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  accounts of $40,000 </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,370,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Inventories, net </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,542,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Prepaid expenses </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  76,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Deferred taxes</font></p></td>
		<td nowrap valign=top style='width:100px;border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  793,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total current assets </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  7,851,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;
  </font>
  </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Equipment
  and leasehold improvements, net&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		</font>
		</p></td>
		<td nowrap valign=top style='width:100px;border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,030,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Other
  assets:</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Goodwill</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,110,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Deferred taxes</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  788,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Other </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  16,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total other assets </font> </p></td>
		<td nowrap valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:100px;border-left:medium none;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,914,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:13.5pt'>
		<td nowrap valign=top style='width:633px;height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total assets</font></p></td>
		<td nowrap valign=top style='width:100px;border-top:medium none;
  border-left:medium none;border-bottom:2.25pt double windowtext;border-right:1.0pt solid windowtext;
  height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">$
  10,795,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:13.5pt'>
		<td nowrap valign=bottom style='width:633px;height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><b><font size="2">&nbsp;</font></b></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><b><font size="2">LIABILITIES
  AND SHAREHOLDERS' EQUITY</font></b></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Current
  liabilities:</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Current portion of long term debt to shareholder</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  70,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Accounts payable</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  397,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Accrued expenses</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  780,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Income taxes payable </font> </p></td>
		<td nowrap valign=top style='width:100px;border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  809,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,056,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Long-term
  debt to a shareholder, net of current portion</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  75,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Total
  liabilities</font></p></td>
		<td nowrap valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:100px;border-left:medium none;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,131,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Commitments
  and contingencies </font> </p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Shareholders'
  equity:</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Series A convertible preferred shares; no par value; liquidation</font></p></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  preference of $3.60 per share; 10,000,000 shares authorized;</font></p></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  78,129 shares issued and outstanding</font></p></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  283,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Common shares; no par value; 50,000,000 shares authorized;</font></p></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  8,858,600 shares issued and outstanding,</font></p></td>
		<td nowrap valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;
  15,075,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Accumulated deficit </font> </p></td>
		<td nowrap valign=top style='width:100px;border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;
  (6,669,000)</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  8,689,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Receivable
  for stock purchase </font> </p></td>
		<td nowrap valign=top style='width:100px;border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (25,000)</font></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td nowrap valign=top style='width:633px;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total shareholders' equity</font></p></td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  8,664,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:633px;height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		&nbsp;</td>
		<td nowrap valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:100px;border-right:
  1.0pt solid windowtext;height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		&nbsp;</td>
	</tr>
	<tr style='height:15.75pt'>
		<td valign=bottom style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;height:23px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and
		shareholders' equity</font></td>
		<td valign=bottom style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<div style="border-bottom-style: double; border-bottom-width: 3px">
			<font size="2">10,795,000&nbsp;</font></div>
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=bottom style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=bottom style='width:101px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=bottom style='width:633px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap valign=bottom style='width:101px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
</table>
</div>
<p>&nbsp;</p>
<hr color="#000080"><br clear=all
style='page-break-before:always'>
<p>&nbsp;</p>
<div align="left">
<table class=MsoNormalTable border=0 cellpadding=0 width=413
 style='width:740px;margin-left:4.65pt;border-collapse:collapse' id="table2">
	<tr style='height:15.75pt'>
		<td colspan=3 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
		<p align=center style='text-align:center'><b><font size="2">PRO-DEX, INC. And
  SUBSIDIARIES</font></b></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td colspan=3 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
		<p align=center style='text-align:center'><b><font size="2">CONSOLIDATED
  STATEMENTS OF OPERATIONS</font></b></p></td>
	</tr>
	<tr style='height:15.75pt'>
		<td colspan=3 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
		<p align=center style='text-align:center'><b><font size="2">Years ended June 30,
  2004 and 2003</font></b></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=2 valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<p align=center style='text-align:center'><i><font size="2">&nbsp;</font></i></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-right:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
		<p align=center style='text-align:center'><i><font size="2">2004</font></i></p></td>
		<td valign=top style='border:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
		<p align=center style='text-align:center'><i><font size="2">2003</font></i></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Net
  sales </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$
  14,200,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$
  11,990,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Cost
  of sales </font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,395,000&nbsp;</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,075,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Gross
  profit </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,805,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,915,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Operating
  expenses: </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Selling </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 857,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 710,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  General and administrative expenses </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,325,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,410,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Research and development costs </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,790,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,457,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Amortization</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&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='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Total
  operating expenses </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,972,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,609,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Income
  from operations </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,833,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 306,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Other
  income (expense): </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Other income, net </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Royalty income </font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 98,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&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 valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Interest (expense) </font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (51,000)</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (87,000)</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Total</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 69,000&nbsp;</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (51,000)</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Income
  before provision for income taxes</font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,902,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 255,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Provision
  for income taxes</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 782,000&nbsp;</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 122,000&nbsp;</font></td>
	</tr>
	<tr style='height:13.5pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Net
  income from continuing operations</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:2.25pt double windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;
  1,120,000&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:2.25pt double windowtext;
  border-right:1.0pt solid windowtext;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  133,000&nbsp;</font></td>
	</tr>
	<tr style='height:13.5pt'>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  		</font></td>
		<td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Net
  Income per share:</font></td>
		<td valign=top style='border:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Basic</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.13&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.02&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Diluted</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.12&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.01&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		</td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Weighted
  average shares outstanding - basic</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  8,799,477&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  8,743,575&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Weighted
  average shares outstanding - diluted</font></td>
		<td valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-top:medium none; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  9,327,423&nbsp;</font></td>
		<td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  9,040,893&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'></td>
		<td valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	</table></div>
<p>&nbsp;</p>
<hr color="#000080"><br clear=all
style='page-break-before:always'>
<p>&nbsp;</p>
<div align="left">
<table class=MsoNormalTable border=0 cellpadding=0
 style='width:740px;margin-left:4.65pt;border-collapse:collapse'>
	<tr style='height:12.75pt'>
		<td width=624 nowrap colspan=8 valign=bottom style='width:468.15pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		<p align=center style='text-align:center'><b><font size="2">PRO-DEX, INC.</font></b></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td width=624 nowrap colspan=8 valign=bottom style='width:468.15pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		<p align=center style='text-align:center'><b><font size="2">CONSOLIDATED
  STATEMENTS OF CASH FLOWS</font></b></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td width=624 nowrap colspan=8 valign=bottom style='width:468.15pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		<p align=center style='text-align:center'><b><font size="2">Years ended June 30</font></b></p>
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:432px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td width=218 nowrap colspan=7 valign=top style='width:163.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
		<p><i><font size="2">&nbsp;</font></i></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:432px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td width=113 nowrap colspan=4 valign=bottom style='width:84.7pt;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'></td>
		<td width=105 nowrap colspan=3 valign=bottom style='width:78.95pt;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:431px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td width=113 nowrap colspan=4 valign=top style='width:84.7pt;border:solid windowtext 1.0pt;
  border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		<p align=center style='text-align:center'><i><font size="2">2004</font></i></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		<p align=center style='text-align:center'><i><font size="2">2003</font></i></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; width:430px;border-bottom:medium none;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Cash
  Flows from Operating Activities: </font> </p></td>
		<td width=113 nowrap colspan=4 valign=top style='width:84.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Net
  Income</font></p></td>
		<td colspan=4 valign=top style='height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;$&nbsp;&nbsp;1,120,000&nbsp;</font></p></td>
		<td nowrap colspan=3 valign=top style='width:105px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;133,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;
  &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash used in operating
  activities:</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Depreciation and amortization </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">362,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">375,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Provision for doubtful accounts</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">10,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">4,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Reserve for obsolete inventory</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(83,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(200,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Non-cash compensation</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">25,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">35,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Deferred taxes</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">22,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">177,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Changes in:</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Increase) in accounts receivable</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(760,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(4,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Decrease in inventories</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">376,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">289,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:430px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Decrease in prepaid expenses</font></p></td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">38,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">3,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Decrease in other assets</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">5,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">17,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Increase (Decrease) in accounts payable and accrued expense</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">159,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(584,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Decrease in income taxes receivable</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">-&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">330,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Increase (Decrease) in income taxes payable</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">780,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(72,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Net
  Cash provided by Operating Activities </font> </p></td>
		<td colspan=4 valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-left:medium none; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">2,054,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">503,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Cash
  Flows From Investing Activities: </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Proceeds from sale of discontinued operations </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">-&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">790,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Proceeds from sale of equipment</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">-&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">6,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Purchases of equipment and leasehold improvements</font></p></td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(352,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(364,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Net
  Cash provided by (used in) Investing Activities </font> </p></td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(352,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">432,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Cash
  Flows from Financing Activities:</font></p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Principal payments on long-term shareholder borrowings </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(71,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(126,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Net (payments) on line of credit </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(432,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(206,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Additional paid in capital </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">76,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">-&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Common stock repurchases </font> </p></td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">-&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(44,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		</td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Net
  Cash (used in) Financing Activities</font></p></td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">(427,000)</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">(376,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=4 valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		</td>
		<td width=105 nowrap colspan=3 valign=bottom style='width:78.95pt;border:
  none;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Net
  Increase in Cash and Cash Equivalents </font> </p></td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">1,275,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		<p align=right style='text-align:right'><font size="2">559,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Cash
  and Cash Equivalents, beginning of period </font> </p></td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">795,000&nbsp;</font></p></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  medium none;border-left:medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'><font size="2">236,000&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		&nbsp;</td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		&nbsp;</td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt' align="right">
		&nbsp;</td>
	</tr>
	<tr style='height:12.75pt'>
		<td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<div style="border-bottom-style: solid; border-bottom-width: 1px">
			<font size="2">Cash
  and Cash Equivalents, end of period </font></div>
		</td>
		<td colspan=4 valign=top style='border-top:
  medium none;border-left:medium none;border-bottom:3px double windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;2,070,000&nbsp;</font></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;border-top:
  medium none;border-left:medium none;border-bottom:3px double windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;795,000&nbsp;</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap valign=top style='width:430px;border-top:medium none;
  border-left:medium none windowtext;border-bottom:medium none #000000;border-right:medium none windowtext;
  height:15px; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>&nbsp;</td>
		<td colspan=4 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none #000000; border-right:medium none windowtext; height:15px; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;</font></td>
		<td width=105 nowrap colspan=3 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none #000000; width:78.95pt;border-right:medium none windowtext;height:15px; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p align=right style='text-align:right'>&nbsp;</p></td>
	</tr>
	<tr style='height:13.5pt'>
		<td nowrap valign=top style='width:432px;height:21px; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td colspan=4 valign=top style='height:21px; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td width=105 nowrap colspan=3 valign=top style='width:78.95pt;height:21px; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td width=624 nowrap colspan=8 valign=bottom style='width:468.15pt;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
		<p align=center style='text-align:center'><i><font size="2">Supplemental
  Information</font></i></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap colspan=2 valign=bottom style='width:433px;height:12.75pt; border-bottom-style:none; border-bottom-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap colspan=3 valign=bottom style='width:159px;height:12.75pt; border-bottom-style:none; border-bottom-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td width=105 nowrap colspan=3 valign=bottom style='width:78.95pt;height:12.75pt; border-bottom-style:none; border-bottom-width:medium; 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 colspan=2 valign=top style='border-left:medium none windowtext; border-right:medium none windowtext; border-top:medium none windowtext; width:431px;border-bottom:medium none;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p>&nbsp;</p></td>
		<td nowrap valign=top style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:medium none windowtext; height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right" colspan="3">
		<p>&nbsp;</p></td>
		<td nowrap valign=top style='border-left:medium none; border-right:medium none; border-bottom:medium none; width:105px;border-top:
  medium none windowtext;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right" colspan="3">
		<p><font size="2">&nbsp;&nbsp;</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap colspan=2 valign=top style='width:431px;border-top:
  1px solid #000000;border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<font size="2">Cash
  payments for interest</font></td>
		<td colspan=3 valign=top style='border-left:medium none; border-top:1px solid #000000; border-bottom:medium none; width:158px;border-right:1px solid windowtext;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">&nbsp;$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;51,000&nbsp;</font></td>
		<td width=105 colspan=3 valign=top style='border-top:1px solid #000000; border-bottom:medium none; width:78.95pt;border-right:1px solid windowtext;height:12.75pt; border-left-color:inherit; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110,000</font></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap colspan=2 valign=top style='width:431px;border-top:
  medium none;border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>&nbsp;</td>
		<td colspan=3 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:158px;border-right:1px solid windowtext;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		&nbsp;</td>
		<td width=105 colspan=3 valign=top style='border-top:medium none; border-bottom:medium none; width:78.95pt;border-right:1px solid windowtext;height:12.75pt; border-left-color:inherit; 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 colspan=2 valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:431px;border-top:medium none;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p><font size="2">Cash
  payments (refunds) for income taxes </font> </p></td>
		<td colspan=3 valign=top style='width:158px;border-top:
  medium none;border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1px solid windowtext;
  height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;$&nbsp; &nbsp;&nbsp;
  (15,000)</font></p></td>
		<td width=105 colspan=3 valign=top style='width:78.95pt;border-top:
  medium none;border-bottom:1px solid windowtext;border-right:1px solid windowtext;
  height:12.75pt; border-left-color:inherit; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
		<p><font size="2">&nbsp;$&nbsp;&nbsp;
  (313,000)</font></p></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap colspan=2 valign=bottom style='width:433px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap colspan=3 valign=bottom style='width:159px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td width=105 nowrap colspan=3 valign=bottom style='width:78.95pt;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt' align="right"></td>
	</tr>
	<tr style='height:12.75pt'>
		<td nowrap colspan=2 valign=bottom style='width:433px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'></td>
		<td nowrap colspan=3 valign=bottom style='width:159px;height:12.75pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right"></td>
		<td width=105 nowrap colspan=3 valign=bottom style='width:78.95pt;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt' align="right"></td>
	</tr>
	<tr height=0>
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