-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 SvNBf25utVSrRdcQWELq3oStOyghXy0bY6/W2T/tozw4VTnYlI1dpq4CzRSsihWq
 KzL3tUO8Q6cQ2YFzLuRMYA==

<SEC-DOCUMENT>0001003297-05-000019.txt : 20050214
<SEC-HEADER>0001003297-05-000019.hdr.sgml : 20050214
<ACCEPTANCE-DATETIME>20050214161059
ACCESSION NUMBER:		0001003297-05-000019
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20050214
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050214
DATE AS OF CHANGE:		20050214

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRO DEX INC
		CENTRAL INDEX KEY:			0000788920
		STANDARD INDUSTRIAL CLASSIFICATION:	MISC INDUSTRIAL & COMMERCIAL MACHINERY & EQUIPMENT [3590]
		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:		05610341

	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>pdex8k1.htm
<TEXT>
<html>

<head>


<title>Pro-Dex Inc. Form 8-K by EDGAR2.com</title>



</head>

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



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

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









<p align="center"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington</b><b>,
 D.C.</b><b>&nbsp; 20549</b></p>





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

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

<p align="center"><b>CURRENT REPORT<br>
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>
(Date of earliest event reported)<b> <br>
February 14, 2005<br>
&nbsp;</b></p>





<p align=center style='text-align:center'><b><font size="4">PRO-DEX, INC.<br>
</font></b>(Exact name of registrant as specified in its charter)</p>
<div align="center">
	<table border="0" width="740" id="table1">
		<tr>
			<td width="227" align="center" valign="top">



<p align=center style='text-align:center'><b>COLORADO&nbsp;</b></p></td>
			<td align="center" valign="top"><b>0-14942</b></td>
			<td width="235" align="center" valign="top"><b>84-1261240</b></td>
		</tr>
		<tr>
			<td width="227" align="center" valign="top">

<p align="center">(State or other<br>
jurisdiction of incorporation)</p></td>
			<td align="center" valign="top">(Commission File Number)</td>
			<td width="235" align="center" valign="top">(IRS
Employer <br>
			Identification Number)</td>
		</tr>
		<tr>
			<td width="227" align="center" valign="top">&nbsp;</td>
			<td align="center" valign="top">&nbsp;</td>
			<td width="235" align="center" valign="top">&nbsp;</td>
		</tr>
		<tr>
			<td width="227" align="center">

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

			</td>
			<td align="center">&nbsp;</td>
			<td width="235" align="center">&nbsp;</td>
		</tr>
	</table>
</div>

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

<p align=center style='text-align:center'><b>(714) 241-4411<br>
</b>(Registrant's Telephone Number, Including Area Code)</p>



<p style='text-autospace:none; margin-top:0; margin-bottom:0.001pt'>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; margin-top:0; margin-bottom:0.001pt'>&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; margin-top:0; margin-bottom:0.001pt'>&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; margin-top:0; margin-bottom:0.001pt'>&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; margin-top:0; margin-bottom:0.001pt'>&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>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:6.5in;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 1.8pt 0in 1.8pt'>
  &nbsp;<p>&nbsp;</p>
	<p>&nbsp;</td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 1.8pt 0in 1.8pt'>

  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 1.8pt 0in 1.8pt'>

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



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





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













<p><b><u>Item 2.02</u></b><b>&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'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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;
</p>

<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">&nbsp;&nbsp; On February
14, 2005, Pro-Dex, Inc. issued a press release announcing its financial
performance for the three month and six month periods ended December 31, 2004.&nbsp;
On that same date, Pro-Dex, Inc. conducted a conference call concerning its
performance for the three month and six month periods ended December 31, 2004.&nbsp;
A copy of the news release is attached to this Form&nbsp;8-K as
Exhibit&nbsp;99.1.</p>
<p style='margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in' align="justify">&nbsp;</p>





<p><b><u>Item 9.01</u></b><b>&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 February 14, 2005 of Pro-Dex Inc.&nbsp; </p>

<div class=MsoNormal align=center style='text-align:center'>

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

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










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





<p>&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; February 14,
2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>&nbsp;&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;&nbsp; Chief Executive Officer</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>
<p style='margin-left:3.25in'>&nbsp;</p>

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



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<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><b>&nbsp;&nbsp;  Exhibit</b><br>
<b><u>&nbsp; Number&nbsp; </u></b><b>&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 February 14, 2005.</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&nbsp;</p>
<p style='margin-left:1.0in;text-indent:-.75in'>&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 align="center">4</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>







</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 align=left style='text-align:left;line-height:normal'><img
width=175 height=77 src="image001.jpg">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<div align="center">
	<table border="0" width="740" id="table1">
		<tr>
			<td valign="top">
			<p align="right">Contact: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
			<td width="319" valign="top">

<p align=left style='text-align:left;line-height:
normal'>Patrick
Johnson, President &amp; CEO<br>
(714)
241-4411</p></td>
		</tr>
		<tr>
			<td valign="top">&nbsp;</td>
			<td width="319" valign="top">&nbsp;</td>
		</tr>
		<tr>
			<td valign="top">&nbsp;</td>
			<td width="319" valign="top">&nbsp;</td>
		</tr>
		<tr>
			<td valign="top">&nbsp;</td>
			<td width="319" valign="top">



<p style='text-align:justify'>Matthew
Hayden, Investor Relations<br>
Hayden
Communications, Inc.<br>
(858)
456 - 4533</p></td>
		</tr>
	</table>
</div>

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

<p style='text-align:justify'><b><i>For
Immediate Release</i></b>&nbsp;&nbsp;</p>

<p align="center"><b>PRO-DEX, INC. ANNOUNCES SECOND FISCAL QUARTER AND
SIX-MONTH RESULTS</b></p>

<p align="center"><b><i>53% increase in first-half
earnings and 10% increase in gross margin<br>
Record Number of New Product
Development Projects<br>
Backlog Increases Subsequent to Quarter End -
Currently Totals $8.4 million</i></b></p>



<p style='text-align:justify;text-indent:.5in'><b>SANTA ANA, CA,</b>
February 14, 2005 - PRO-DEX, INC. (NASDAQ: PDEX), a provider of embedded
motion control and miniature rotary drive systems, serving the medical, dental,
factory automation, and scientific research markets, today
announced financial results for the second quarter and six-month periods ending
December 31, 2004. </p>



<p style='text-align:justify;text-indent:.5in'>Consolidated net
sales for the second quarter were $2.9 million compared to $3.7 million for the
three months ended December 31, 2003. The decrease is
partially related to the Company's previously announced shift to a royalty
agreement with its HealOzone product, and to delays in the scheduled release of
three new products. Gross profit for the second quarter was $1.6 million
compared to $1.7 million for the second quarter of last year. Gross profit as a percentage of sales increased to
56 percent for the quarter compared to 46.1 percent for the second fiscal
quarter of last year and 55.9 percent for the first fiscal quarter of this year.
Operating expenses remained flat with the year ago
period at $1.3 million. Net income for the quarter was $183,000, or
$0.02 per diluted share, as compared to a net income of $230,000 or $0.02 per diluted
share, for the three months ended December 31, 2003. Backlog at the end of the second quarter was $4.7 million compared to $4.0 million at the end of the
second quarter of last year and $4.3 million at the end the first quarter of
this year. Subsequent to the quarter end, the Company received orders totaling more
than $4.0 million, which have increased the current backlog to $8.4 million.</p>
<p style='text-align:justify;text-indent:.5in'>Commenting on the Company's financial
performance, Pro-Dex's President and Chief Executive Officer, Patrick Johnson
said, &quot;Our results reflect a substantial improvement in gross
profitability and cash flow, the result of a conscious effort to focus on developing
and manufacturing higher-quality, higher-margin products for our customers,
coupled with considerable operating efficiencies in our manufacturing facility.
A year ago we had only six active product development
projects, three customer-funded and three funded by the Company. As we closed
the first half of this fiscal year, our total portfolio of product development
projects had more than doubled to 13, eight funded by our customers and five
funded by the Company. We estimate the customer funded projects for new
products represent a potential of $5 million to Pro-Dex in first-year revenue.
In addition, the Company-funded projects are all targeted at current customers
and we expect sales to emanate from those products when development is
completed. While not reflected in the financial results for the second quarter,
the substantial increase in the number of product development projects has the
Company far better positioned than a year ago for on-going success, as we
expect these projects to translate into incremental increases in sales and
earnings.&quot; </p>
<p style='text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='text-align:justify;text-indent:.5in'>&nbsp;</p>





<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










<p style='text-align:justify;text-indent:.5in'>For the six months ended December 31, 2004, consolidated net sales were $6.2 million compared to $7.2 million for the same period in
the prior year. Gross profit was $3.5 million compared to $3.2 million for
the same period in the prior year. For the six months, gross profit as a
percent of sales increased to 55.9 percent compared to 44.9 percent in the same
period in the prior year. Operating expense decreased $42,000 to $2.5 million compared
to the same six months in the prior year. The Company reported net income for
the six months ended December 31, 2004 of $646,000 or $0.07 per diluted share,
as compared to a net income of $422,000 or $0.05 per diluted share, for the six
months ended December 31, 2003. This represents an increase of $224,000 or 53
percent over the previous year.</p>



<p style='text-align:justify;text-indent:.5in'>Highlights from and subsequent to the end of the second
quarter included:</p>



<ul>
	<li>
	<p style='margin-right:0in;text-align:justify;'>The Company completed the quarter with 13 active product
development projects, including eight funded by customers. Revenue from some of
these is expected during the next several quarters.</p></li>
	<li>
	<p style='margin-right:0in;text-align:justify;'>On January 7, Pro-Dex announced receiving a substantial follow-on
order from Walter Lorenz Surgical, a wholly-owned subsidiary of Biomet, Inc.
(Nasdaq: BMET). The order was for delivery of 500 battery-powered cranial
screwdrivers, an innovative product Pro-Dex previously developed exclusively
for Lorenz. This new order follows the initial 500-unit order received in July
of 2003.</p></li>
	<li>
	<p style='margin-right:0in;text-align:justify;'>Subsequent to the end of the quarter, the Company received
additional orders from new and existing customers for products in active
development increasing the backlog to $8.4 million.</p></li>
	<li>
	<p style='margin-right:0in;text-align:justify;'>Subsequent to the end of the quarter, the Company began to ship two
new products and expects to launch a third before March 30, 2005, products
originally scheduled to launch during the second quarter, representing approximately
$365,000 in new sales revenue or 12 percent of second quarter sales.</p></li>
</ul>



<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>&quot;During the past year, we have reallocated
more than $100,000 in previously spent administration expenses to fund
increased sales, marketing and product development efforts,&quot; Mr. Johnson continued. &quot;We've recently made key organizational
changes that we believe will accelerate our top-line performance and we plan to
add additional personnel to bolster our R&amp;D and product development
capabilities. All of these activities are intended to support sales and earnings
growth while maintaining or increasing our profit margins. Our business model
is built on developing and launching new products for
diversified global companies, a process that is sometimes challenging and
sometimes out of our complete control. This was certainly the case in the
second quarter.&nbsp; Last year, we focused on improving our manufacturing
capabilities and matching those capabilities to a shifting product mix. At the
same time, we initiated conversations with several high-profile customers
regarding the development of new and innovative products. Those conversations
have now transitioned into a record number of product development projects and
order backlog which we anticipate will translate into increased future sales
and improved profitability. Creating speed to market for our customers is challenging,
and our ability to meet this challenge is the key reason customers choose
Pro-Dex and the factor that truly differentiates us from our competitors.&quot;</p>



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





<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










<p><b><u>Guidance:</u></b></p>










<p style='text-align:justify;text-indent:.5in;text-autospace:
none'>Management is adjusting its revenue guidance
slightly and expects sales in the range of $14.5 million to $16 million for its
fiscal year (which ends June 30<sup>th</sup>), compared to the previously
stated expectation of between $15 and $17 million, recognizing that delays
encountered during the year will impact the top line. Improvements in the
Company's operating margins provides increased confidence that Pro-Dex will be
able to meet its previously stated fiscal 2005 earnings goal of between $0.18
to $0.22 per share.</p>



<p style='text-align:justify'><b><u>Earnings Conference Call</u></b></p>



<p style='text-align:justify; text-indent:0.5in'>Investors and all others are
invited to listen to a conference call discussing the second quarter and fiscal
2005 outlook today at 4:30 p.m. Eastern Time. The call-in number is (800)
553-0329 for domestic callers and (612) 332-0802 for international callers.&nbsp; In
addition, the call will be broadcast over the Internet at <u>
<font color="#0000FF">www.pro-dex.com</font></u>. An online replay will be
available for 30 days. Additionally, a telephone replay will be available two
hours after the call for 48-hours by dialing (800) 475-6701 &nbsp;for domestic
callers and (320) 365-3844 &nbsp;for international callers; conference ID# 769944.</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, factory automation,
and scientific research markets. 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 <u><font color="#0000FF">www.pro-dex.com</font></u>. </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">(tables follow) </p>

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

<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>

<div class=MsoNormal align=center style='text-align:center'>





<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










&nbsp;</div>







<p align="center">&nbsp;</p>

<div align="left">



<table class=MsoNormalTable border=0 cellpadding=0
 style='width:740px;margin-left:4.65pt;border-collapse:collapse' id="table2">
 <tr style='height:15.75pt'>
  <td colspan=5 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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=5 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">CONSOLIDATED
  BALANCE SHEETS</font></b></p>
  </td>
 </tr>
 <tr style='height:10.5pt'>
  <td nowrap valign=bottom style='width:376px;height:10.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td nowrap colspan=2 valign=bottom style='width:191px;height:10.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap colspan=2 valign=bottom style='width:165px;height:10.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr style='height:27.0pt'>
  <td nowrap valign=top style='width:375px;height:27.0pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td colspan=2 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; height:27.0pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">December 31,2004
	<br>
	(unaudited)</font></i></p>
  </td>
  <td colspan=2 valign=top style='border:1.0pt solid windowtext;
  height:27.0pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">June 30,2004
	<br>
	(audited)</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:374px;border-bottom:medium none;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><b><font size="2">ASSETS</font></b></p>
  </td>
  <td colspan=2 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">

  </td>
  <td colspan=2 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Current assets:</font></p>
  </td>
  <td nowrap colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:190px;border-right:1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:164px;border-right:1.0pt solid windowtext;height:12.75pt; 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:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Cash and cash equivalents </font> </p>
  </td>
  <td width=9 valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=179 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,544,000&nbsp;</font></p>
  </td>
  <td width=9 valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=154 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,070,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Accounts receivable, net of allowance for doubtful </font> </p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  accounts of $45,000 at Dec. 31 and $40,000 at June 30</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,604,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,370,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Inventories, net </font> </p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,976,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,542,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Prepaid expenses </font> </p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">223,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">76,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Deferred income taxes</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">793,000&nbsp;</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">793,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current
  assets </font> </p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">8,140,000&nbsp;</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">7,851,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Equipment and leasehold
  improvements, net&nbsp;&nbsp;</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,055,000&nbsp;</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,030,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Other assets:</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Goodwill</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,110,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,110,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">788,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">788,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Other </font> </p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">37,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">16,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other assets
  </font>
  </p>
  </td>
  <td colspan=2 valign=top style='border-top:
  1.0pt solid windowtext;border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,935,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-top:
  1.0pt solid windowtext;border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,914,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 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>
  <td colspan=2 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Total assets</font></p>
  </td>
  <td width=9 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=179 valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:2.25pt double windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">11,130,000&nbsp;</font></p>
  </td>
  <td width=9 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=154 valign=top style='border-top:medium none;border-left:
  medium none;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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">10,795,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><b><font size="2">LIABILITIES AND
  SHAREHOLDERS' EQUITY</font></b></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Current liabilities:</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</font></p>
  </td>
  <td width=9 valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=179 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">447,000&nbsp;</font></p>
  </td>
  <td width=9 valign=top style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=154 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">397,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Current portion of
  long term debt to shareholder</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">70,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">452,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">780,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable
	</font> </p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">580,000&nbsp;</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">809,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current
  liabilities </font> </p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,479,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,056,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Long-term debt to a
  shareholder, net of current portion</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">75,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Total liabilities</font></p>
  </td>
  <td colspan=2 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; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">1,479,000&nbsp;</font></p>
  </td>
  <td colspan=2 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; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">2,131,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Commitments and
  contingencies </font> </p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Shareholders' equity:</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Series A convertible
  preferred shares; no par value; liquidation</font></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><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 colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78,129 shares
  issued and outstanding</font></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">283,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">283,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Common shares; no par
  value; 50,000,000 shares authorized;</font></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,039,217 shares
  issued and outstanding,</font></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">15,404,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">15,075,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit
	</font> </p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='text-align:right'><font size="2">(6,023,000)</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='text-align:right'><font size="2">(6,669,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">9,664,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">8,689,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:9.75pt'>
  <td nowrap valign=top style='width:374px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:9.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Receivable for stock
  purchase </font> </p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='text-align:right'><font size="2">(13,000)</font></p>
  </td>
  <td colspan=2 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">
  <p class=MsoNormal align=right style='text-align:right'><font size="2">(25,000)</font></p>
  </td>
 </tr>
 <tr style='height:9.75pt'>
  <td nowrap valign=top style='width:374px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:9.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; 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 nowrap valign=top style='width:374px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders'
  equity</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">9,651,000&nbsp;</font></p>
  </td>
  <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">8,664,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:9.75pt'>
  <td nowrap valign=top style='border-left:1.0pt solid windowtext; border-right:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:374px;border-top:medium none;height:9.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td colspan=2 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>
  <td colspan=2 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 nowrap valign=top style='width:374px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:2.25pt double windowtext;
  border-right:medium none;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and
  shareholders' equity</font></p>
  </td>
  <td width=9 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">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=179 valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:2.25pt double windowtext;border-right:1.0pt solid windowtext;
  padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">11,130,000&nbsp;</font></p>
  </td>
  <td width=9 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$</font></p>
  </td>
  <td width=154 valign=top style='border-top:medium none;border-left:
  medium none;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">
  <p class=MsoNormal align=right style='margin-right:.7pt;text-align:right'>
	<font size="2">10,795,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:376px;height:12.75pt; 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' align="right">

  </td>
  <td colspan=2 valign=top style='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:376px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><i><font size="2">See notes to consolidated
  financial statements.</font></i></p>
  </td>
  <td colspan=2 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td colspan=2 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 nowrap valign=bottom style='width:376px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><i><font size="2">&nbsp;</font></i></p>
  </td>
  <td colspan=2 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td colspan=2 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 nowrap valign=bottom style='width:376px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td colspan=2 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td colspan=2 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 nowrap valign=bottom style='width:376px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td colspan=2 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td colspan=2 valign=bottom style='padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

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







</div>





<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










&nbsp;<div align="left">







<table class=MsoNormalTable border=0 cellpadding=0 width=560
 style='width:740px;margin-left:4.65pt;border-collapse:collapse' id="table3">
 <tr style='height:15.75pt'>
  <td colspan=3 valign=bottom style='height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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='height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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='height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">Three months
  ended December 31 (unaudited)</font></b></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:381px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap colspan=2 valign=top style='width:355px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">&nbsp;</font></i></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=top style='width:380px;height:12.75pt; 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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">2004</font></i></p>
  </td>
  <td valign=top style='border:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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='width:379px;border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:192px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=top style='width:158px;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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Net sales </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	2,894,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,704,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Cost of sales </font> </p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,275,000&nbsp;</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,997,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Gross profit </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,619,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,707,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Operating expenses: </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Selling </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  278,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; General and
  administrative expenses </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  581,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  682,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Research and
  development costs </font> </p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  457,000&nbsp;</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  439,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Total operating expenses </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,316,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,314,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</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;height:12.75pt; 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; 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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Income from operations </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  303,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  393,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Other income (expense): </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Other income, net
	</font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  5,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Interest expense
	</font> </p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (2,000)</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (16,000)</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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Total</font></p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  3,000&nbsp;</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (10,000)</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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Income before provision for
  income taxes</font></p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  306,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;383,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td nowrap valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Provision for income taxes</font></p>
  </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;height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  123,000&nbsp;</font></p>
  </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; height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  153,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Net income</font></p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 183,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 230,000&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:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Net Income per share:</font></p>
  </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; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Basic</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.02&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.03&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Diluted</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.02&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.02&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  &nbsp;</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; height:12.75pt; 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;
  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='border-right:medium none; border-top:medium none; border-bottom:medium none; width:379px;border-left:
  1.0pt solid windowtext;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Weighted average shares
  outstanding - basic</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,993,849&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,776,600&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='width:379px;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;
  border-right:medium none;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">Weighted average shares
  outstanding - diluted</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,584,276&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,307,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='width:381px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=bottom style='width:193px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=bottom style='width:159px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='width:381px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><i><font size="2">&nbsp;</font></i></p>
  </td>
  <td nowrap valign=bottom style='width:193px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=bottom style='width:159px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td nowrap valign=bottom style='width:381px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=bottom style='width:193px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td nowrap valign=bottom style='width:159px;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

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







</div>





<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










&nbsp;<div align="left">







<table class=MsoNormalTable border=0 cellpadding=0 width=560
 style='width:740px;margin-left:4.65pt;border-collapse:collapse' id="table4">
 <tr style='height:15.75pt'>
  <td colspan=3 valign=bottom style='height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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='height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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='height:15.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">Six months ended
  December 31 (unaudited)</font></b></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=272 nowrap colspan=2 valign=top style='width:204.0pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">&nbsp;</font></i></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </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 class=MsoNormal 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 class=MsoNormal align=center style='text-align:center'><i><font size="2">2003</font></i></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border-top:solid windowtext 1.0pt;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:none;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  </td>
  <td width=136 valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=136 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net sales </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,226,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,232,000
	</font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cost of sales </font> </p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,747,000&nbsp;</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  3,985,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Gross profit </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  3,479,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  3,247,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Operating expenses: </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Selling </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  477,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  399,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; General and
  administrative expenses </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,125,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,295,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Research and
  development costs </font> </p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  876,000&nbsp;</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  826,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Total operating expenses </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,478,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  2,520,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</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;height:12.75pt; 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; 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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Income from operations </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,001,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  727,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Other income (expense): </font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Other income, net
	</font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  12,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Royalty income
	</font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  40,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  - </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Interest expense
	</font> </p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (9,000)</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (35,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Total</font></p>
  </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;height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  76,000&nbsp;</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (23,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Income before provision for
  income taxes</font></p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  1,077,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  704,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:13.5pt'>
  <p class=MsoNormal><font size="2">Provision for income taxes</font></p>
  </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;height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  431,000&nbsp;</font></p>
  </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; height:13.5pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  282,000 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net income</font></p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;646,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 422,000
  </font>
  </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=top style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</font> </p>
  </td>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; height:12.75pt; 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;
  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 width=288 nowrap valign=bottom style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net Income per share:</font></p>
  </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; height:12.75pt; 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;
  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 width=288 nowrap valign=bottom style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Basic</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.07&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.05 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=bottom style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Diluted</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.07&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.05 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=bottom style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</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; height:12.75pt; 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;
  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 width=288 nowrap valign=bottom style='width:3.0in;border:none;border-left:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Weighted average shares
  outstanding - basic</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,928,876&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,771,300
  </font>
  </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=bottom style='width:3.0in;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;
  border-right:none;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Weighted average shares
  outstanding - diluted</font></p>
  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,508,454&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,266,300
  </font>
  </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=288 nowrap valign=bottom style='width:3.0in;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=bottom style='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 width=288 nowrap valign=bottom style='width:3.0in;padding:0in .85pt 0in .85pt;
  height:12.75pt'>
  <p class=MsoNormal><i><font size="2">&nbsp;</font></i></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=bottom style='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 width=288 nowrap valign=bottom style='width:3.0in;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=bottom style='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 width=288 nowrap valign=bottom style='width:3.0in;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

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







</div>





<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



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










&nbsp;<div align="left">







<table class=MsoNormalTable border=0 cellpadding=0 width=629
 style='width:740px;margin-left:4.65pt;border-collapse:collapse' id="table5">
 <tr style='height:12.75pt'>
  <td colspan=3 valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">PRO-DEX, INC. and SUBSIDIARIES</font></b></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td colspan=3 valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal 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 colspan=3 valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="center">
  <p class=MsoNormal align=center style='text-align:center'><b><font size="2">Six months ended December 31 (unaudited)</font></b></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=99 nowrap valign=bottom style='width:73.9pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.4pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </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; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">2004</font></i></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">2003</font></i></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border:solid windowtext 1.0pt;
  border-bottom:none;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash Flows from Operating
  Activities: </font> </p>
  </td>
  <td width=99 nowrap valign=top style='width:73.9pt;border:none;border-right:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  </td>
  <td width=102 nowrap valign=top style='width:76.4pt;border:none;border-right:
  solid windowtext 1.0pt;padding:0in .85pt 0in .85pt;height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net Income</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 646,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 422,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to
  reconcile net income to net cash used in operating activities:</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and
  amortization </font> </p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 171,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 193,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for
  doubtful accounts</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Recovery)
  reserve for obsolete inventory</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (136,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock based
  compensation</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in:</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Increase) decrease in accounts receivable</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 761,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (565,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Increase) decrease in inventories</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (471,000)</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:321.7pt;border-left:
  1.0pt solid windowtext;height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Increase) in prepaid expenses</font></p>
  </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;
  height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (147,000)</font></p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:15px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (88,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:medium none;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:19px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Increase) decrease in other assets</font></p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:19px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21,000)</font></p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:19px; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Decrease) in accounts payable and accrued expenses</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (279,000)</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (153,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><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 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (229,000)</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 282,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net Cash provided by
  Operating Activities </font> </p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 486,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash Flows From Investing
  Activities: </font> </p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Purchases of equipment
  and leasehold improvements</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (196,000)</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (148,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net Cash (used in)
  Investing Activities </font> </p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (196,000)</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (148,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash Flows from Financing
  Activities:</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Principal payments on long-term shareholder borrowings </font> </p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (145,000)</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net
  payments on line of credit </font> </p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -
  &nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (182,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
  Proceeds from option and warrant exercise </font> </p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 329,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net Cash provided by (used
  in) Financing Activities</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 184,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (172,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Net Increase (decrease) in
  Cash and Cash Equivalents </font> </p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 474,000&nbsp;</font></p>
  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (263,000)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash and Cash Equivalents,
  beginning of period </font> </p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,070,000&nbsp;</font></p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 795,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:12.75pt'>

  &nbsp;</td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td 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:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash and Cash Equivalents,
  end of period </font> </p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:2.25pt double 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 class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 2,544,000
	</font> </p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:2.25pt double windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 532,000&nbsp;
	</font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td valign=top style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=top style='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 width=629 nowrap colspan=3 valign=bottom style='width:472.0pt;padding:
  0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><i><font size="2">Supplemental Information</font></i></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=bottom style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=bottom style='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 width=429 nowrap valign=top style='width:321.7pt;border:solid windowtext 1.0pt;
  border-bottom:none;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash payments for interest</font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:9.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in .85pt 0in .85pt;height:9.75pt'>

  &nbsp;

  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:9.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; height:9.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=top style='width:321.7pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in .85pt 0in .85pt;height:12.75pt'>
  <p class=MsoNormal><font size="2">Cash payments for income
  taxes </font> </p>
  </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;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 660,000&nbsp;</font></p>
  </td>
  <td valign=top style='border-top:medium none;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  height:12.75pt; padding-left:.85pt; padding-right:.85pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><font size="2">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,000&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=bottom style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>
  <p class=MsoNormal><i><font size="2">&nbsp;</font></i></p>
  </td>
  <td width=99 nowrap valign=bottom style='width:73.9pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.4pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=bottom style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=99 nowrap valign=bottom style='width:73.9pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.4pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=bottom style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=99 nowrap valign=bottom style='width:73.9pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.4pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=bottom style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=99 nowrap valign=bottom style='width:73.9pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.4pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=429 nowrap valign=bottom style='width:321.7pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=99 nowrap valign=bottom style='width:73.9pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.4pt;padding:0in .85pt 0in .85pt;
  height:12.75pt'>

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





</div>

<p>&nbsp;</p>







</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>image001.jpg
<TEXT>
begin 644 image001.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T-
M#AT5%A$8(Q\E)"(?(B$F*S<O)BDT*2$B,$$Q-#D[/CX^)2Y$24,\2#<]/CO_
MVP!#`0H+"PX-#AP0$!P[*"(H.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[
M.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SO_P``1"`!-`*\#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#V:BBB@`HH
MHH`****`"BBFNX0>_I0`I(49)P*HKJ]O)/-!%DS0G#HWRD#L?<'UJ1F+G)K!
M\46CK9C5;5O*N[/Y@X_B3/(/J*J*3=BXI-ZEC_A(KA;@VLT$<-QU56)(D'JI
M[_3K4<GBBYMS^]M$=?\`98@U7!MO$.C022X220$KM/S(XZE?I61'+,TDMC>8
M-S!_$/\`EHO9JU44^AJHQ['3:=XQTF_<1-*;:4G&R;@$^QZ5N]:\5N(^6)&5
M+L/UK3T'QI=^'9TM[YGN=-8XYY:'Z>H]ORJG1O\`"$J-_A/6**BM[B&[MX[B
MWD66*10R.IR&![U+7,<X4444`%%%%`!1110`5@S>./"UO<RVT^O64,T+E)$D
ME"E6'!!S6]7R7XMO?[3\7ZM=KR)KN0KCTW$#]*`/I4^//"0Z^(]-_P#`A?\`
M&M#3=<TG6`3INI6MYMZB"57(^H!KRRS^`]A<Z-!-)J]U%>2PJ[#8I16(SC'7
M'XUY-9WU]X9UX7%G.8KJRF*[D/!P<$>X..E`'UW17+W_`,1/#6CQPKJNH"VN
M)8$F\GRG8X89&,"J]G\4O"UWIEWJ9NY+>TMI!'OFCVF5B,X1>I_*@#KR<#)J
MLS%FR:Y[PQX]TWQDUVNF6]TD=L5W23(%#9STP3Z5T2Q,PST'O3&AE9OB(X\/
M7Q_Z8FM?R21PP-0RQHZM'*BLIX96&0::>I2>IS/A?1S8Z>+JX!\^=<JI_P"6
M:>GMGJ?PJGX@AECU&TNK6)I)6)BV+U;(X'\ZZN9L"LY84N=2M589V2B0?45H
MI.]S12UN<A)X?U7["@_LZX:0G<0(SQFJ%SX:U>2W='TNY`(Z^63@UZ1XLUBX
MT71Q/:>7Y\DJQIY@)`ZDG&1V!KFM&\=Z@U_%!J:6\D,K!3)$A1D)Z'J015QG
M-JZ12G-JZ1E?#+Q'-8:K)X8U#<BN2UN)!@HXY*\]CU'N/>O5:Y+X@Z3%+HC:
MW#&J:AI1%S#,!AB%()4GN,9KH$U:S&BIJ\\Z06I@$S2.V%52,\FHJM3]]&=1
MJ7OHNT5Y=JGQXT*TN&BT_3KJ^53CS2PB5OIG)_05H>%/C#HGB74HM-FMIM/N
MICMB\Q@R.WIN'0_45B9'H-%<CXR^(-KX)N;=+_3+R:&Y4F.>':5R.JG)'/3\
MZ3P7\1M,\;7=U;65M<6\EL@?$^WY@3CC!/3C\Z`.OHK@?$OQ>T/PUKLVDS6M
MS=20`>8\&TJK'G;R1R.*ZCPWKA\1:1'J0L+BRCE)\M+C`9E[-@=C0!/KM^-+
MT"_OV./LUM))GW"DBOD[2WMO[9M)+^0I;^>C3/M)PN[)X'7BOHCXP:E_9WP\
MO$#8>[=+=?Q.3^BFO&OAGX2M?&'B1[*^,HM8H&D<Q-@YR`.?QH`]0U_XV>'K
M32Y%T0S7EXR%8@8BB(>Q);'3T%>0>$/#5[XQ\216<2LR%_,N9B.$3/))]3VK
MVB'X(>$(W#/]NE`_A:?`_05VFC:#I?A^S^R:5916L74A!RQ]2>I_&@#P3XUS
M1GQQ':1`!;.RBBP.W5OY$5+X&^$]WXMTA=2O=0:RLF8B!53<S^K8)P!D?CBN
M;\?W_P#:GCW6+A#N!NFC0^H7Y!_*OI;PSIXTOPQIMB!CR+9%(]\<_K0!E^#?
M!UOX.TX:9#.;@M(TTDK+M+9X`Q[`5KZJQE,-DKLBS$M*5.#L'49[9)`^F:MD
M8NP2WWD(`^AK/U$.FH"7:2AB"@@=\DG^E,:U)]/M;>V9A;1+$I'(7@&EG8MJ
M`B3DF+=C\:DLU*0&23Y<\\\8%83:I+-<SWMI)&H<A(FD0L"@[XR.IR?I3MJ.
MUWH:DUI<M]U!_P!]51TK]YK+KD$PA@V.QZ51E\0ZM#_RVLV^L##_`-FJSX/#
M2_:[ASN8M@MCJ3EC_.KLTG<NS2=S*^)5UM%A;9_OR$?D!_,UYY:W5Q)JEK;1
M-S+.B#(SU85T_P`3+W=XC$.>(;=5_$DG_"J/PZT&?5O$<>I/&19V3;]Y'#2?
MP@>N.OX5UTDHTKLZJ=HTKL]&\<W"VO@C5Y'/!MF0?5OE'ZFO#_'/BN>X\*Z!
MX<BD(BBM%FN<'[[9(0'Z`9_$>E>F_%C5XUT@Z2C@LR^=,!_"!PH/U//_``&O
M#/%-G-8:XUM."'2"'@^AC4_UKEM:E\SEM:G\STSX=6OA#PUX/_M[Q#-9/=76
MYDCEVR.$'`"IUR<>E<%HL+>)/B-;MIMK]G2>_P#.2)!Q$@?=VZ8%==X;^"AU
MO2K/5)-=1;>ZB60+%%EAGMDG&1TKU/PIX&T/P=&1I\6ZYD&'N)3EV'MZ#Z5B
M9#?B'X9'BGPA=V:(&NHAYUL>^]>WXC(_&OF_P]XBU+PKJ4E[ISB.X:)X3N&<
M`CKCU!P?J*^BOB!XZM?!>D;@5EU&X!%M`3_X\W^R/UZ5\T7ANIY#?W*-_I3L
M_F%<!VS\V.W4]J`/2?A=\.Y?$5X/$6NH[V8<O&LG)N'SDD^V?SKWI55%"J`J
M@8``X`KCOA7XACU_P1:<J+BR'V:91QRHX/XC!^N:[*@#AOB+X#U+QP]G%#JL
M5I:6VYC&T18LY[\'T_F:C^'7PXF\#WE]<3W\5V;F-479&5*X))Z_A7>T4`%,
MF$C0NL3!)"I",1D`XX-/HH`\6A^!&H+>QW4VO6\K"42.#"WS<Y/.:]H````Z
M"EHH`H:U!-+ISO;,4N(?WD3+UR/_`*V:XA?'VN6X"36EG*?[_P`RY_G7HU><
M>--%DTJ=M0MTW64QRX`_U3'^AK:DHR?*S:FHR=F17?BR]U)/+O0RPGK!`FU6
M_P!XDY(]N*K3:Q=7`V0Q^0G3>W4#VK"%^%^ZY7V!ICZEZL3^-=*I6V1TJFEL
MC:N=1XQNS6YX?\9Z+HVE""X-R\Q8O(8[=F`S[]^`*XM9%>'SF&!C/KQ67/?7
M-X3%:1-L/&0.OX]J;IJ:L-TU-6/1;_QM\/[Z?[5?6QGF``W/9L6('X4R3XEV
MTMJ;?PYI;QHHVK-.@CC3Z(.3^E>?6VAY8/>/N_Z9J>/Q-7;FZCLD2&*/?,^%
MA@C'+'L`*3HPV3;(=*.R=RU;V<_B7Q+:Z6\CSR7$HGO96Y/EKR<^F>`/PKH?
MBE\,I_$TT>KZ*$%]'&(Y86.T2J.A!]1T_*NB\!>%'\/V$EY?X;5+W#3G_GFO
M9!]._P#]:NLKFK23=ELCGJR3=ELCYQTK2?BEX>1K/3+;5+:(G/EIADSZC.0*
M[/P9HWCC3[V_\1Z]:W.H7R6ICL[>6X&69B,]\*.*];HK$R/G^?X=>./%7BM+
MSQ#;F-+F0>=-YBD1(/X5`/``X`KO/B-X`74O!-II^@V2F?377R(U(!*GAAD_
M@?PKT2B@#QOX7>&?&/A#Q"1>Z6PTZ]79.1(IV$<JV,_4?C7LE%%`!1110`44
M44`%%%%`!3)8HYXFBE17C<896&013Z*`/,O$_P`-+F-GN_#[!T/)M';!7_=)
MZ_0UYQ?+>:?,8+VWFMI1U65"I_6OI2H;FSM;V/R[JWBG3^[(@8?K773Q+CI)
M7.F&(<=):GSSI^N0Q1"&YR`OW7`SQ[U;D\0:?&ORN[^RI_C7L4O@3PK,Y9]#
MM,G^ZFW^53VGA'P[8.'MM%LT8=&\H$C\35.O3>MF6Z\'K8\?TVU\0^)'":-I
M;I$>#<S<(OXGC\LUZ5X1\`6?AQ_MUW+]NU-AS.XXC]D';Z]?I76@!0`H``Z`
A4M8SK.2LM$8SK.6BT04445@8A1110`4444`%%%%`'__9
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
