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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001003297-08-000029.txt : 20080214
<SEC-HEADER>0001003297-08-000029.hdr.sgml : 20080214
<ACCEPTANCE-DATETIME>20080214161252
ACCESSION NUMBER:		0001003297-08-000029
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20071231
FILED AS OF DATE:		20080214
DATE AS OF CHANGE:		20080214

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRO DEX INC
		CENTRAL INDEX KEY:			0000788920
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				841261240
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			0608

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14942
		FILM NUMBER:		08615760

	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>10QSB
<SEQUENCE>1
<FILENAME>esprodex10qsb.htm
<TEXT>
<html>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;<b><font style="font-size: 14.0pt">UNITED STATES
</font></b></p>
<h4 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>
<b><font style="font-size: 14.0pt">SECURITIES AND EXCHANGE COMMISSION</font></b></h4>
<h5 style='margin-top:12.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;font-size:13.0pt;font-family:"Times New Roman";font-weight:bold;font-style:italic;text-align:center'>Washington, D.C. 20549</h5>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<h6 style='margin-top:12.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;text-align:center'>
<font style="font-size: 24.0pt">FORM
  10-QSB</font></h6>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b><font style="font-size: 14.0pt">&nbsp;</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.75in;text-autospace:
  none'><b>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Quarterly Report Pursuant to Section
  13 or 15(d) of the Securities Exchange Act of 1934.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>For
  the quarterly period ended December 31, 2007</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<b><font style="font-size: 6.0pt">&nbsp;</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<b>OR</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.75in;text-autospace:
  none'><b>[&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Transition Report Pursuant to Section
  13 or 15(d) of the Securities Exchange Act of 1934.&nbsp;&nbsp;
  For the transition period from&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>to&nbsp;
  <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .</u></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>Commission
  File Number&nbsp;&nbsp;&nbsp; 0-14942 </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b><font style="font-size: 24.0pt">PRO-DEX, INC.&nbsp;&nbsp;&nbsp; </font></b>
</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>(Exact
  name of small business issuer as specified in its
  charter)&nbsp;&nbsp;&nbsp;&nbsp; </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<table class=MsoNormalTable border=0 cellpadding=0 width=721
 style='width:100%;border-collapse:collapse'>
	<tr>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b><u>Colorado
  </u></b></p></td>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b><u>84-1261240
  </u></b></p></td>
	</tr>
	<tr>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b>(State
  or Other Jurisdiction of&nbsp;&nbsp;&nbsp; </b></p></td>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b>(IRS
  Employer Identification No.) </b></p></td>
	</tr>
	<tr>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b>Incorporation
  or Organization)&nbsp;&nbsp;&nbsp; </b></p></td>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
		<b>&nbsp;&nbsp; </b></p></td>
	</tr>
	<tr>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
		<b>&nbsp;&nbsp; </b></p></td>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
		<b>&nbsp;&nbsp;&nbsp;&nbsp; </b></p></td>
	</tr>
	<tr>
		<td colspan=2 valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b><u>151
  E. Columbine Avenue, Santa Ana, California 92707&nbsp;&nbsp;&nbsp; </u></b>
		</p></td>
	</tr>
	<tr>
		<td colspan=2 valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b>(Address
  of Principal Executive Offices)&nbsp;&nbsp;&nbsp;&nbsp; </b></p></td>
	</tr>
	<tr>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
		<b><font style="font-size: 10.0pt">&nbsp;&nbsp; </font></b></p></td>
		<td valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
		<b><font style="font-size: 10.0pt">&nbsp;&nbsp; &nbsp; </font></b></p>
		</td>
	</tr>
	<tr>
		<td colspan=2 valign=top style='padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
		<b>Issuer's
  telephone number: <u>714-241-4411&nbsp;&nbsp;&nbsp; </u></b></p></td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>
<font style="font-size: 10.0pt">Indicate by check mark whether the Registrant (1) has
filed all reports required by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past ninety days.&nbsp;&nbsp;&nbsp; Yes [X]&nbsp; No [ ]
</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">Indicate
the number by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">Yes
[&nbsp; ]&nbsp; No [X]</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">Indicate
the number of shares outstanding of each of the Registrant&#146;s classes of Common
Stock outstanding as of the latest practicable date:&nbsp; 9,718,366 shares of
Common Stock, no par value, as of February 7, 2008. </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">Transitional
Small Business Disclosure Format:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes [&nbsp; ]&nbsp; No [X]</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:10pt;font-family:"Times New Roman";text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
- -1-</p><hr color="#000080"><br clear=all
style='page-break-before:always'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b><font style="font-size: 11.0pt">Item 1. &nbsp;&nbsp;&nbsp;&nbsp; </font>Financial
Statements</b></p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=654
 style='width:490.2pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=385 valign=top style='width:288.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
			<b>&nbsp;</b></p></td>
			<td width=14 valign=top style='width:10.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=112 valign=top style='width:84.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 valign=top style='width:81.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=634 colspan=5 valign=bottom style='width:475.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>PRO-DEX,&nbsp;INC.&nbsp;and&nbsp;SUBSIDIARIES</b></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=634 colspan=5 valign=bottom style='width:475.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>CONSOLIDATED&nbsp;BALANCE&nbsp;SHEETS</b></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:26.15pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:26.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:26.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">December&nbsp;31,&nbsp;2007</font></i></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">(unaudited)</font></i></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:26.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">June&nbsp;30,2007</font></i></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">(audited)</font></i></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:26.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<b><font size="2">ASSETS</font></b></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Current&nbsp;assets:</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash&nbsp;and&nbsp;cash&nbsp;equivalents</font></p>
			</td>
			<td width=14 valign=bottom style='width:10.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=112 valign=bottom style='width:84.15pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">220,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=109 valign=bottom style='width:81.85pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">403,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts&nbsp;receivable,&nbsp;net&nbsp;of&nbsp;allowance&nbsp;for&nbsp;doubtful</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounts&nbsp;of&nbsp;$135,000&nbsp;at&nbsp;December&nbsp;31&nbsp;and&nbsp;$153,000&nbsp;at&nbsp;June&nbsp;30</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,059,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,436,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories,&nbsp;net</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5,007,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,622,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid&nbsp;expenses</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">284,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">205,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,178,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,091,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;current&nbsp;assets</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,748,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,757,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:8.0pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:8.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Property,&nbsp;plant,&nbsp;equipment&nbsp;and&nbsp;leasehold&nbsp;improvements,&nbsp;net</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,355,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,778,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Other&nbsp;assets:</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,997,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,997,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangibles&nbsp;-&nbsp;Patents,&nbsp;net</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,271,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,321,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">229,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">229,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">33,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">25,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;other&nbsp;assets</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,530,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,572,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:8.7pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:8.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:8.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:8.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;assets</font></p></td>
			<td width=14 valign=bottom style='width:10.25pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=112 valign=bottom style='width:84.15pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18,633,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.25pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=109 valign=bottom style='width:81.85pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18,107,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:8.75pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:8.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:8.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<b><font size="2">LIABILITIES&nbsp;AND&nbsp;SHAREHOLDERS'&nbsp;EQUITY</font></b></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Current&nbsp;liabilities:</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit&nbsp;Line</font></p>
			</td>
			<td width=14 valign=bottom style='width:10.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=112 valign=bottom style='width:84.15pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=109 valign=bottom style='width:81.85pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">300,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts&nbsp;payable</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,319,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,110,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued&nbsp;expenses</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,467,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,183,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income&nbsp;taxes&nbsp;payable</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">212,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">158,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current&nbsp;portion&nbsp;of&nbsp;term&nbsp;note</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">250,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">250,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current&nbsp;portion&nbsp;of&nbsp;real&nbsp;estate&nbsp;loan</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">29,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">26,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current&nbsp;portion&nbsp;of&nbsp;&quot;patent&quot;&nbsp;deferred&nbsp;payable</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">82,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;current&nbsp;liabilities</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,277,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,109,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:7.3pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:7.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Long-term&nbsp;liabilities</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term&nbsp;note</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">271,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">396,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real&nbsp;estate&nbsp;loan</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,576,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,593,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patent&nbsp;deferred&nbsp;payable</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">158,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;long-term&nbsp;liabilities</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,847,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,147,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;liabilities</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5,124,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5,256,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Commitments&nbsp;and&nbsp;contingencies</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Shareholders'&nbsp;equity:</font></p></td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common&nbsp;shares;&nbsp;no&nbsp;par&nbsp;value;&nbsp;50,000,000&nbsp;shares&nbsp;authorized;</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,718,366&nbsp;shares&nbsp;issued&nbsp;and&nbsp;outstanding&nbsp;December&nbsp;31,&nbsp;2007,</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,718,366&nbsp;shares&nbsp;issued&nbsp;and&nbsp;outstanding&nbsp;June&nbsp;30,&nbsp;2007,</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">16,443,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">16,340,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated&nbsp;deficit</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(2,934,000)</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(3,489,000)</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:9.4pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:9.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:9.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:9.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:9.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;shareholders'&nbsp;equity</font></p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">13,509,000&nbsp;</font></p></td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12,851,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:9.45pt'>
			<td width=385 valign=bottom style='width:288.75pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:9.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:9.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:9.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:9.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=385 valign=bottom style='width:288.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:double windowtext 2.25pt;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;liabilities&nbsp;and&nbsp;shareholders'&nbsp;equity</font></p>
			</td>
			<td width=14 valign=bottom style='width:10.25pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=112 valign=bottom style='width:84.15pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18,633,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.25pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=109 valign=bottom style='width:81.85pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18,107,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:3.65pt'>
			<td width=385 valign=bottom style='width:288.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:3.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=126 colspan=2 valign=bottom style='width:94.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:3.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:3.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:3.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=634 colspan=5 valign=bottom style='width:475.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">See&nbsp;notes&nbsp;to&nbsp;consolidated&nbsp;financial&nbsp;statements.</font></i></p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b><i><font style="font-size: 11.0pt">&nbsp;</font></i></b></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-2-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=616
 style='width:461.85pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=373 valign=top style='width:279.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=107 valign=top style='width:80.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=107 valign=top style='width:80.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=616 colspan=5 valign=bottom style='width:461.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>PRO-DEX,&nbsp;INC.&nbsp;and&nbsp;SUBSIDIARIES</b></p></td>
		</tr>
		<tr style='height:14.8pt'>
			<td width=616 colspan=5 valign=bottom style='width:461.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.8pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>CONSOLIDATED&nbsp;STATEMENTS&nbsp;OF&nbsp;OPERATIONS</b></p></td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=616 colspan=5 valign=bottom style='width:461.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>Three&nbsp;months&nbsp;ended&nbsp;December&nbsp;31&nbsp;(unaudited)</b></p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">2007</font></i></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">2006</font></i></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;sales</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,123,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,631,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cost&nbsp;of&nbsp;sales</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,769,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,262,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;profit</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,354,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,369,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Operating&nbsp;expenses:</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">352,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">340,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General&nbsp;and&nbsp;administrative&nbsp;expenses</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">866,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">746,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research&nbsp;and&nbsp;development&nbsp;costs</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">635,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">579,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;operating&nbsp;expenses</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,853,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,665,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Loss)&nbsp;income&nbsp;from&nbsp;operations</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">501,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(296,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Other&nbsp;income&nbsp;(expense):</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other&nbsp;income&nbsp;(expense),&nbsp;net</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">48,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalty&nbsp;income</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">14,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest&nbsp;income&nbsp;(expense)</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(40,000)</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(58,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">22,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(40,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Loss)&nbsp;income&nbsp;before&nbsp;(benefit)&nbsp;provision&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">523,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(336,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Benefit)&nbsp;provision&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">218,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(198,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;(loss)&nbsp;income</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">305,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(138,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;(loss)&nbsp;income&nbsp;per&nbsp;share:</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.03&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(0.01)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.03&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(0.01)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted&nbsp;average&nbsp;shares&nbsp;outstanding&nbsp;-&nbsp;basic</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,718,366&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,550,521&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted&nbsp;average&nbsp;shares&nbsp;outstanding&nbsp;-&nbsp;diluted</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,888,356&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,550,521&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=373 valign=bottom style='width:279.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=373 valign=bottom style='width:279.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;background:white;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:91.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<i><font style="font-size: 9.0pt">&nbsp;</font></i></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<i><font size="2">See notes to consolidated financial statements.</font></i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-3-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=634
 style='width:475.35pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=372 valign=top style='width:278.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=107 valign=top style='width:80.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=107 valign=top style='width:80.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=614 colspan=5 valign=bottom style='width:460.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>PRO-DEX,&nbsp;INC.&nbsp;and&nbsp;SUBSIDIARIES</b></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=614 colspan=5 valign=bottom style='width:460.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>CONSOLIDATED&nbsp;STATEMENTS&nbsp;OF&nbsp;OPERATIONS</b></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=614 colspan=5 valign=bottom style='width:460.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>Six&nbsp;months&nbsp;ended&nbsp;December&nbsp;31&nbsp;(unaudited)</b></p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">2007</font></i></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">2006</font></i></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;sales</font></p></td>
			<td width=14 valign=bottom style='width:10.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12,114,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,864,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cost&nbsp;of&nbsp;sales</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">7,608,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,514,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;profit</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,506,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,350,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Operating&nbsp;expenses:</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">675,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">678,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General&nbsp;and&nbsp;administrative&nbsp;expenses</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,601,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,316,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research&nbsp;and&nbsp;development&nbsp;costs</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,209,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,226,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;operating&nbsp;expenses</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,485,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,220,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Income&nbsp;from&nbsp;operations</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,021,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">130,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Other&nbsp;income&nbsp;(expense):</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other&nbsp;income,&nbsp;net</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">48,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalty&nbsp;income</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">20,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">25,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Interest&nbsp;expense,&nbsp;net</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(82,000)</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(112,000)</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(14,000)</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(87,000)</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Income&nbsp;before&nbsp;(benefit)&nbsp;provision&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,007,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">43,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Benefit)&nbsp;provision&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">376,000&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(60,000)</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;income</font></p></td>
			<td width=14 valign=bottom style='width:10.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">631,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">103,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Income&nbsp;per&nbsp;share:</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></p></td>
			<td width=14 valign=bottom style='width:10.7pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.06&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</font></p></td>
			<td width=14 valign=bottom style='width:10.7pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.06&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=107 valign=bottom style='width:80.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted&nbsp;average&nbsp;shares&nbsp;outstanding&nbsp;-&nbsp;basic</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,718,366&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,545,757&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.9pt'>
			<td width=372 valign=bottom style='width:278.95pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted&nbsp;average&nbsp;shares&nbsp;outstanding&nbsp;-&nbsp;diluted</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,926,306&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,769,444&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=372 valign=bottom style='width:278.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<i><font style="font-size: 9.0pt">&nbsp;</font></i></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<i><font size="2">See notes to consolidated financial statements.</font></i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<i><font style="font-size: 9.0pt">&nbsp;</font></i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-4-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=694
 style='width:520.35pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=488 valign=top style='width:365.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<font style="font-size: 10.0pt">&nbsp;</font></p></td>
			<td width=14 valign=top style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=86 valign=top style='width:64.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=92 valign=top style='width:68.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=694 colspan=5 valign=bottom style='width:520.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>PRO-DEX,&nbsp;INC.&nbsp;and&nbsp;SUBSIDIARIES</b></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=694 colspan=5 valign=bottom style='width:520.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>CONSOLIDATED&nbsp;STATEMENTS&nbsp;OF&nbsp;CASH&nbsp;FLOWS</b></p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=694 colspan=5 valign=bottom style='width:520.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
			<b>Six&nbsp;months&nbsp;ended&nbsp;December&nbsp;31&nbsp;(unaudited)</b></p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">2007</font></i></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">2006</font></i></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;Flows&nbsp;from&nbsp;Operating&nbsp;Activities:</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Income</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=86 valign=bottom style='width:64.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">631,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=92 valign=bottom style='width:68.65pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">103,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments&nbsp;to&nbsp;reconcile&nbsp;net&nbsp;income&nbsp;to&nbsp;net&nbsp;cash&nbsp;provided&nbsp;by&nbsp;operating&nbsp;activities:</font></td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>&nbsp;</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>&nbsp;</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation&nbsp;and&nbsp;amortization</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">243,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">232,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock&nbsp;based&nbsp;compensation</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">103,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">85,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Recovery)&nbsp;provision&nbsp;for&nbsp;doubtful&nbsp;accounts</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(18,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">77,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve&nbsp;reduction&nbsp;(provision)&nbsp;for&nbsp;obsolete&nbsp;inventory</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(173,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">200,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease)&nbsp;increase&nbsp;in&nbsp;deferred&nbsp;taxes</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(87,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(305,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes&nbsp;in:</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease&nbsp;in&nbsp;accounts&nbsp;receivable</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">395,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">422,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)&nbsp;in&nbsp;inventories</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(212,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(963,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)&nbsp;in&nbsp;prepaid&nbsp;expenses</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(79,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(90,000)</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)&nbsp;in&nbsp;other&nbsp;assets</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(8,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(30,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase&nbsp;in&nbsp;accounts&nbsp;payable&nbsp;and&nbsp;accrued&nbsp;expenses</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">417,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">346,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase&nbsp;in&nbsp;income&nbsp;taxes&nbsp;payable</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">54,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">127,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Cash&nbsp;provided&nbsp;by&nbsp;Operating&nbsp;Activities</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,266,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">204,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;Flows&nbsp;From&nbsp;Investing&nbsp;Activities:</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions&nbsp;to&nbsp;Astromec&nbsp;acquisition&nbsp;cost</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(66,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions&nbsp;to&nbsp;Intangible&nbsp;assets&nbsp;-&nbsp;Patents&nbsp;related&nbsp;to&nbsp;Intraflow</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(2,000)</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases&nbsp;of&nbsp;equipment&nbsp;and&nbsp;leasehold&nbsp;improvements</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(770,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(217,000)</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Cash&nbsp;used&nbsp;in&nbsp;Investing&nbsp;Activities</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(770,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(285,000)</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;Flows&nbsp;from&nbsp;Financing&nbsp;Activities:</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net&nbsp;(payments)&nbsp;borrowing&nbsp;on&nbsp;line&nbsp;of&nbsp;credit</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(300,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">300,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal&nbsp;(payments)&nbsp;on&nbsp;term&nbsp;note</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(125,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(125,000)</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal&nbsp;(payments)&nbsp;on&nbsp;mortgage</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(14,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(13,000)</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal&nbsp;(payment)&nbsp;on&nbsp;patent&nbsp;deferred&nbsp;payable</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(240,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(76,000)</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds&nbsp;from&nbsp;option&nbsp;exercise</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Cash&nbsp;provided&nbsp;by&nbsp;Financing&nbsp;Activities</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(679,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">89,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Increase&nbsp;(decrease)&nbsp;in&nbsp;Cash&nbsp;and&nbsp;Cash&nbsp;Equivalents</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(183,000)</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;and&nbsp;Cash&nbsp;Equivalents,&nbsp;beginning&nbsp;of&nbsp;period</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">403,000&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">358,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;and&nbsp;Cash&nbsp;Equivalents,&nbsp;end&nbsp;of&nbsp;period</font></p>
			</td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=86 valign=bottom style='width:64.55pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">220,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=92 valign=bottom style='width:68.65pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">366,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:11.95pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=694 colspan=5 valign=bottom style='width:520.35pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<i><font size="2">Supplemental&nbsp;Information</font></i></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;payments&nbsp;for&nbsp;interest</font></p>
			</td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=86 valign=bottom style='width:64.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">95,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=92 valign=bottom style='width:68.65pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.0pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">150,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:9.15pt'>
			<td width=488 valign=bottom style='width:365.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:9.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:9.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:9.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:11.95pt'>
			<td width=488 valign=bottom style='width:365.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;payments&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=86 valign=bottom style='width:64.55pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">560,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=92 valign=bottom style='width:68.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:11.95pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">137,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.0pt'>
			<td width=488 valign=bottom style='width:365.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:75.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 colspan=2 valign=bottom style='width:79.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.0pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<font style="font-size: 10.0pt">&nbsp;</font><i><font style="font-size: 9.0pt">&nbsp;</font></i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<i><font style="font-size: 9.0pt">&nbsp;</font></i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
<i><font style="font-size: 9.0pt">&nbsp;</font></i></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<i><font size="2">See notes to consolidated financial statements.</font></i></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">-5-</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>PRO-DEX,
INC. AND SUBSIDIARIES </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basis of Presentation</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>The accompanying unaudited consolidated financial statements of Pro-Dex,
Inc. (&#147;we&#148;, &#147;us&#148;, &#147;our&#148;, &#147;Pro-Dex&#148; or the &quot;Company&quot;) have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. These financial statements should be read in conjunction
with the audited financial statements presented in our Annual Report for the
fiscal year ended June 30, 2007.&nbsp; In the opinion of management, all adjustments
considered necessary for a fair presentation have been included. The results of
operations for such interim periods are not necessarily indicative of the
results that may be expected for the full year. For further information, refer
to the consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended June 30, 2007. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories
are stated at the lower of cost (the first-in, first-out method) or market and
consist of the following: </p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=544
 style='width:407.95pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=276 valign=top style='width:206.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=116 valign=top style='width:87.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=116 valign=top style='width:87.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.6pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">December&nbsp;31,&nbsp;2007</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.65pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.6pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(unaudited)</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.65pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">June&nbsp;30,&nbsp;2007</font></p></td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Raw&nbsp;Materials</font></p></td>
			<td width=18 valign=bottom style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=116 valign=bottom style='width:87.2pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,306,000&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=116 valign=bottom style='width:87.25pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,474,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Work&nbsp;in&nbsp;process</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.6pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,179,000&nbsp;</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.65pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">594,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Development&nbsp;costs&nbsp;under&nbsp;contract</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.6pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">41,000&nbsp;</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.65pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">141,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Finished&nbsp;goods</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,298,000&nbsp;</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.65pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,403,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p></td>
			<td width=18 valign=bottom style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=116 valign=bottom style='width:87.2pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5,824,000&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=116 valign=bottom style='width:87.25pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5,612,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Reserve&nbsp;for&nbsp;slow&nbsp;moving&nbsp;and&nbsp;obsolete&nbsp;items</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(817,000)</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.65pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(990,000)</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=276 valign=bottom style='width:206.7pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total&nbsp;inventories,&nbsp;net</font></p>
			</td>
			<td width=18 valign=bottom style='width:13.4pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=116 valign=bottom style='width:87.2pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5,007,000&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.4pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=116 valign=bottom style='width:87.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,622,000&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WARRANTY</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>The warranty reserve is based on historical costs of warranty repairs and
expected future identifiable warranty expenses.&nbsp; As of December 31, 2007 we
carried a warranty reserve of $534,000 which was comprised of $36,000 for
future warranty expenses related to products that are currently in the process
of being repaired and $456,000 for future warranty expenses related to products
that are still in the field, and $42,000 for our legacy dental and industrial
products.&nbsp; Warranty expenses are reflected in the financial statements in cost
of sales (&#147;COS&#148;).&nbsp; The total warranty expense reflected in the COS for the
quarter ended December 31, 2007 was $238,000 and for the six-months ended
December 31, 2007 was $605,000.&nbsp; The warranty accrual and expenses for the
three and six-months ended December 31, 2007 and 2006 are presented below:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=586
 style='width:439.3pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=278 valign=top style='width:208.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
			</td>
			<td width=21 valign=top style='width:15.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=141 valign=top style='width:105.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=127 valign=top style='width:95.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=308 colspan=4 valign=bottom style='width:230.8pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=161 colspan=2 valign=bottom style='width:120.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=146 colspan=2 valign=bottom style='width:109.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Beginning&nbsp;Balance</font></p></td>
			<td width=21 valign=bottom style='width:15.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">443,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">321,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.3pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Actual&nbsp;expenditures</font></p>
			</td>
			<td width=21 valign=bottom style='width:15.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(147,000)</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(296,000)</font></p></td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Additional&nbsp;accrual</font></p>
			</td>
			<td width=21 valign=bottom style='width:15.45pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">238,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">311,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Ending&nbsp;Balance</font></p></td>
			<td width=21 valign=bottom style='width:15.45pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">534,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">336,000&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-6-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=586
 style='width:439.3pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=278 valign=top style='width:208.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=21 valign=top style='width:15.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=141 valign=top style='width:105.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=127 valign=top style='width:95.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=308 colspan=4 valign=bottom style='width:230.8pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=161 colspan=2 valign=bottom style='width:120.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=146 colspan=2 valign=bottom style='width:109.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Beginning&nbsp;Balance</font></p></td>
			<td width=21 valign=bottom style='width:15.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">469,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">309,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.3pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Actual&nbsp;expenditures</font></p>
			</td>
			<td width=21 valign=bottom style='width:15.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(540,000)</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(476,000)</font></p></td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Additional&nbsp;accrual</font></p>
			</td>
			<td width=21 valign=bottom style='width:15.45pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">605,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">503,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.25pt'>
			<td width=278 valign=bottom style='width:208.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Ending&nbsp;Balance</font></p></td>
			<td width=21 valign=bottom style='width:15.45pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=141 valign=bottom style='width:105.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">534,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=127 valign=bottom style='width:95.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">336,000&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>Net
INCOME (LOSS) per share </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:6.0pt;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
following table reconciles the weighted average shares outstanding for basic
and diluted net income per share for the periods indicated.</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=683
 style='width:512.15pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=416 valign=top style='width:312.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:6.0pt;text-align:center'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=104 valign=top style='width:78.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=105 valign=top style='width:78.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=248 colspan=4 valign=bottom style='width:185.95pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;(loss)&nbsp;income</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.0pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">305,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=105 valign=bottom style='width:78.8pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(138,000)</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Basic&nbsp;net&nbsp;income&nbsp;per&nbsp;common&nbsp;share:</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;Weighted&nbsp;average&nbsp;number&nbsp;of&nbsp;common&nbsp;shares&nbsp;outstanding</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,718,366&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,550,521&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Basic&nbsp;net&nbsp;(loss)&nbsp;income&nbsp;per&nbsp;common&nbsp;share</font></p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.03&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=105 valign=bottom style='width:78.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(0.01)</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Diluted&nbsp;net&nbsp;(loss)&nbsp;income&nbsp;per&nbsp;share:</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;Weighted&nbsp;average&nbsp;of&nbsp;common&nbsp;shares&nbsp;outstanding</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,718,366&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,550,521&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect&nbsp;of&nbsp;potentially&nbsp;dilutive&nbsp;securities&nbsp;(options)</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">155,698&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect&nbsp;of&nbsp;potentially&nbsp;dilutive&nbsp;securities&nbsp;(restricted&nbsp;shares)</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,375&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect&nbsp;of&nbsp;potentially&nbsp;dilutive&nbsp;securities&nbsp;(warrants)</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">7,917&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted&nbsp;average&nbsp;number&nbsp;of&nbsp;common&nbsp;and&nbsp;shares&nbsp;-</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=416 valign=bottom style='width:312.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Diluted</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,888,356&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,550,521&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=416 valign=bottom style='width:312.05pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Diluted&nbsp;net&nbsp;(loss)&nbsp;income&nbsp;per&nbsp;common&nbsp;share</font></p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.03&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=105 valign=bottom style='width:78.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(0.01)</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:6.0pt;text-align:center'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=692
 style='width:518.9pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=425 valign=top style='width:318.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:6.0pt;text-align:center'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:15.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=104 valign=top style='width:78.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:15.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=104 valign=top style='width:78.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=248 colspan=4 valign=bottom style='width:186.15pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;income</font></p></td>
			<td width=20 valign=bottom style='width:15.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">631,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:15.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.1pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">103,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Basic&nbsp;net&nbsp;income&nbsp;per&nbsp;common&nbsp;share:</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;Weighted&nbsp;average&nbsp;number&nbsp;of&nbsp;common&nbsp;shares&nbsp;outstanding</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,718,366&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,545,757&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Basic&nbsp;net&nbsp;income&nbsp;per&nbsp;common&nbsp;share</font></p>
			</td>
			<td width=20 valign=bottom style='width:15.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.05pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.06&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:15.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Diluted&nbsp;net&nbsp;income&nbsp;per&nbsp;share:</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;Weighted&nbsp;average&nbsp;of&nbsp;common&nbsp;shares&nbsp;outstanding</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,718,366&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,545,757&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect&nbsp;of&nbsp;potentially&nbsp;dilutive&nbsp;securities&nbsp;(options)</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">176,244&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">215,770&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect&nbsp;of&nbsp;potentially&nbsp;dilutive&nbsp;securities&nbsp;(restricted&nbsp;shares)</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">21,038&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect&nbsp;of&nbsp;potentially&nbsp;dilutive&nbsp;securities&nbsp;(warrants)</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">10,658&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">7,917&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted&nbsp;average&nbsp;number&nbsp;of&nbsp;common&nbsp;and&nbsp;shares&nbsp;-</font></p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=425 valign=bottom style='width:318.6pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Diluted</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,926,306&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:93.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,769,444&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=425 valign=bottom style='width:318.6pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Diluted&nbsp;net&nbsp;income&nbsp;per&nbsp;common&nbsp;share</font></p>
			</td>
			<td width=20 valign=bottom style='width:15.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.05pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.06&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:15.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:6.0pt;text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-7-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>CREDIT FACILITIES</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>On November 1,
2007, our existing credit facility with Wells Fargo was replaced with an
expanded facility with a total borrowing capacity of $6,562,500.&nbsp; The credit
line increases our borrowing availability from $2,000,000 to $4,000,000.&nbsp; Its
terms require monthly interest payments at the prime rate of interest (7.25% at
December 31, 2007); or LIBOR (4.6% at December 31, 2007) plus 1.75%, at our
discretion, based on outstanding borrowings.&nbsp; The credit facility expires on
November 1, 2009.&nbsp; An additional term commitment is available for borrowings
through November 1, 2008 for amounts up to $2,000,000.&nbsp; We can take advances
against this commitment through November 1, 2008, at which time the outstanding
borrowings against this commitment will be converted to a term loan to be
amortized and repaid over 60 months. Its terms require monthly interest
payments at the prime rate of interest; or LIBOR plus 2.0%, at our discretion,
based on outstanding borrowings.&nbsp; It is anticipated that the borrowings from
the term commitment will be used for construction financing of tenant
improvements for our new Irvine facility.&nbsp; The term loan that was entered into
in January 2006 to finance the purchase of our Astromec subsidiary remains in
place.&nbsp; As of December 31, 2007, there was a principal balance of $520,833 to
be fully paid off in January 2010, following the contracted amortization
schedule.&nbsp; Its terms require monthly interest payments at the prime rate of
interest; or LIBOR plus 2.0%, at our discretion, based on outstanding
borrowings with no minimum interest charge.&nbsp; All assets of the Company except our
Carson City land and building secure the outstanding borrowings from Wells
Fargo. There was no outstanding balance under the terms of the credit line or
term commitment facility as of December 31, 2007.&nbsp; The total eligible
additional borrowing capacity at December 31, 2007 was $6,000,000. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>In March 2006,
we entered into a 10-year mortgage with Union Bank of California for
$1,650,000.&nbsp; Its terms require monthly interest payments at a fixed rate
of 6.73% based on outstanding borrowings.&nbsp; The principal payments on the
mortgage note are based on a 25-year amortization of the note and are $11,000
per month beginning May 1, 2006.&nbsp; The outstanding borrowings are secured by our
Carson City land and building.&nbsp; There was approximately $1,605,000 outstanding
balance under the terms of this mortgage as of December 31, 2007.&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";text-autospace:ideograph-numeric ideograph-other'>There
are certain financial and non-financial covenants that we must meet to be in
compliance with the terms of the Wells Fargo credit facility (which includes
the term loan and the line of credit), as amended, and the Union Bank
mortgage.&nbsp; At December 31, 2007, management believes that the Company was in
compliance with all such covenants.&nbsp; &nbsp;&nbsp;&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>Income Taxes</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Deferred income taxes are provided on a liability method whereby deferred
tax assets and liabilities are recognized for temporary differences.&nbsp; Temporary
differences are the differences between the reported amounts of assets and liabilities
and their tax bases.&nbsp; Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some
portion or all of the deferred tax assets will not be realized. Deferred tax
assets and liabilities are adjusted for the effects of changes in tax laws and
rates on the date of enactment.&nbsp; We have tax credit carry forwards totaling
$201,000 for state tax purposes that do not expire and can be carried forward
indefinitely until fully utilized.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Significant
management judgment is required in determining our provision for income taxes
and the recoverability of our deferred tax asset.&nbsp; Such determination is based
on our estimates of future taxable income by jurisdiction in which we operate
and the period over which our deferred tax assets will be recoverable.&nbsp; In the
event that actual results differ from these estimates or we adjust these
estimates in future periods, we may need to establish a valuation allowance,
which could result in a tax provision up to the carrying value of our deferred
tax assets.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-8-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>In
July&nbsp;2006, the FASB issued FASB Interpretation No.&nbsp;48, &#147;Accounting
for Uncertainty in Income Taxes,&#148; (&#147;FIN 48&#148;), an interpretation of FASB
Statement No.&nbsp;109, &#147;Accounting for Income Taxes,&#148; (&#147;FASB 109&#148;). FIN 48
clarifies the accounting for uncertainty in income taxes recognized in an
enterprise&#146;s financial statements in accordance with FASB 109. This
Interpretation prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure, and transition. FIN 48 is effective for fiscal years
beginning after December&nbsp;15, 2006. The cumulative effect of applying FIN
48 is to be reported as an adjustment to the opening balance of retained
earning in the year of adoption.&nbsp; As a result of the implementation of FIN 48,
the Company recorded a decrease of $75,000 to retained earnings, an increase of
$47,000 to net deferred income tax assets and an increase of $122,000 to income
taxes payable as of July 1, 2007.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>As of December 31, 2007, the Company has provided a
liability for $240,000 of unrecognized tax benefits related to various federal
and state income tax matters.&nbsp; Of this total, $62,000 relates to R&amp;D
credits and would reduce the Company&#146;s income tax expense if recognized and would
result in a corresponding decrease in the Company&#146;s effective tax rate. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>A
reconciliation of the beginning and ending amount of unrecognized tax benefits
is as follows:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</p>
<table border="0" style="border-collapse: collapse" width="77%" id="table1">
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Balance at July 1, 2007</p></td>
		<td align="right">$212,000</td>
	</tr>
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Additions based on tax positions related to the current year</p></td>
		<td align="right">0</td>
	</tr>
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions
for tax positions of prior years&nbsp;</p></td>
		<td align="right">$28,000</td>
	</tr>
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
		Reductions for tax positions of prior years </p></td>
		<td align="right">0</td>
	</tr>
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Settlements</p></td>
		<td align="right">0</td>
	</tr>
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;
		</p></td>
		<td align="right">-----------</td>
	</tr>
	<tr>
		<td width="604">
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Balance at December 31, 2007</p></td>
		<td align="right">$240,000</td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>The Company
recognizes accrued interest and penalties related to unrecognized tax benefits
in income tax expense. As of December 31, 2007, the Company had approximately
$178,000 in accrued interest and penalties which is included as a component of
the $240,000 unrecognized tax benefit noted above. The liability for the
payment of interest and penalties has increased by approximately $33,000 for
the six months ended December 31, 2007.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>The Company and
its subsidiary are subject to U.S. federal income tax, and are currently under
audit by the Internal Revenue Service for the years ended June 30, 2004 through
June 30, 2006. &nbsp;It is reasonably possible that the examination phase of the
audit for these years may conclude in the next 12 months. The Company believes
the appropriate provisions for all outstanding issues have been made for all
years under audit. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company and its subsidiary are subject to income tax of multiple state tax
jurisdictions. The Company and its subsidiary state
income tax returns are open to audit under the statute of limitations for the
years ended June 30, 2003 through June 30, 2007. The company does not
anticipate a significant change to the total amount of unrecognized tax
benefits within the next 12 months.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHARE-BASED COMPENSATION</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Share-based compensation expense recognized under SFAS 123(R) for the
three months ended December 31, 2007 and 2006 was $54,000 and $52,000,
respectively, which was related to stock options and restricted stock grants in
2007 and stock options and stock appreciation rights in 2006.&nbsp; Share-based
compensation expense reduced our results of operations as shown: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-9-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=653
 style='width:489.65pt;border-collapse:collapse'>
		<tr style='height:7.45pt'>
			<td width=84 valign=bottom style='width:63.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.6pt'>
			<td width=84 valign=bottom style='width:63.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=267 colspan=4 valign=bottom style='width:200.6pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;months&nbsp;ended&nbsp;December&nbsp;31,</font></p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=267 colspan=4 valign=bottom style='width:200.6pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(unaudited)</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Share-based&nbsp;compensation&nbsp;expense&nbsp;recognized:</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative,&nbsp;options</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">25,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">35,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.6pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative,&nbsp;restricted&nbsp;stock</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">29,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative,&nbsp;SAR's</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">17,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Subtotal&nbsp;expense</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">54,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">52,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Related&nbsp;deferred&nbsp;tax&nbsp;benefit</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(12,000)</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Decrease&nbsp;in&nbsp;net&nbsp;income</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">42,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">52,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:7.45pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.6pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Decrease&nbsp;in&nbsp;basic&nbsp;earnings&nbsp;per&nbsp;share</font></p>
			</td>
			<td valign=bottom style='width:20px;padding:1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:113px;border-right:
  1.0pt solid windowtext;padding:1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.00&nbsp;</font></p></td>
			<td valign=bottom style='width:23px;padding:1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:108px;border-right:
  1.0pt solid windowtext;padding:1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Decrease&nbsp;in&nbsp;diluted&nbsp;earnings&nbsp;per&nbsp;share</font></p>
			</td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:20px;border-bottom:1.0pt solid windowtext;
  padding:1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:113px;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.00&nbsp;</font></p></td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:23px;border-bottom:1.0pt solid windowtext;
  padding:1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:108px;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Share-based compensation expense recognized under SFAS 123(R) for the six
months ended December 31, 2007 and 2006 was $103,000 and $85,000, respectively,
which was related to stock options and restricted stock grants in 2007 and
stock options and stock appreciation rights in 2006.&nbsp; Share-based compensation
expense reduced our results of operations as shown: </p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=653
 style='width:489.65pt;border-collapse:collapse'>
		<tr style='height:6.7pt'>
			<td width=84 valign=bottom style='width:63.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:6.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:6.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:6.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:6.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=267 colspan=4 valign=bottom style='width:200.6pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;months&nbsp;ended&nbsp;December&nbsp;31,</font></p>
			</td>
		</tr>
		<tr style='height:12.6pt'>
			<td width=84 valign=bottom style='width:63.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=267 colspan=4 valign=bottom style='width:200.6pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(unaudited)</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Share-based&nbsp;compensation&nbsp;expense&nbsp;recognized:</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative,&nbsp;options</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">44,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">52,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.6pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative,&nbsp;restricted&nbsp;stock</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">59,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative,&nbsp;SAR's</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">33,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Subtotal&nbsp;expense</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">103,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">85,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Related&nbsp;deferred&nbsp;tax&nbsp;benefit</font></p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(24,000)</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Decrease&nbsp;in&nbsp;net&nbsp;income</font></p></td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">79,000&nbsp;</font></p></td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">85,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:7.45pt'>
			<td width=84 valign=bottom style='width:63.35pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=301 valign=bottom style='width:225.7pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=134 colspan=2 valign=bottom style='width:100.7pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=133 colspan=2 valign=bottom style='width:99.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:7.45pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.65pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border-top:none;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Decrease&nbsp;in&nbsp;basic&nbsp;earnings&nbsp;per&nbsp;share</font></p>
			</td>
			<td valign=bottom style='width:20px;padding:1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:112px;border-right:
  1.0pt solid windowtext;padding:1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
			<td valign=bottom style='width:23px;padding:1.1pt;
  height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:108px;border-right:
  1.0pt solid windowtext;padding:1.1pt;height:12.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.6pt'>
			<td width=385 colspan=2 valign=bottom style='width:289.05pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Decrease&nbsp;in&nbsp;diluted&nbsp;earnings&nbsp;per&nbsp;share</font></p>
			</td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:20px;border-bottom:1.0pt solid windowtext;
  padding:1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:112px;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:23px;border-bottom:1.0pt solid windowtext;
  padding:1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:108px;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.01&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>As of December 31, 2007, there was $138,407 of total unrecognized
compensation cost related to 226,750 non-vested outstanding stock options with
a per share weighted average value of $0.91.&nbsp; The unrecognized expense is
anticipated to be recognized on a straight-line basis over a weighted average
period of 1.0 year.&nbsp; The following is a summary of stock option activity in the
six months ending December 31:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=715
 style='width:536.15pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=305 valign=top style='width:229.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
			</td>
			<td width=88 valign=top style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:28px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:78px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=15 valign=top style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=top style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:30px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:78px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border-top:solid windowtext 1.0pt;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=197 colspan=3 valign=bottom style='width:147.85pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;border:none;border-top:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=197 colspan=3 valign=bottom style='width:147.85pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:25.4pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:25.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:25.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  25.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:25.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:25.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:25.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Fixed&nbsp;Options</font></p></td>
			<td width=88 valign=bottom style='width:65.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Shares</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise&nbsp;Price</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Shares</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise&nbsp;Price</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Outstanding&nbsp;at&nbsp;beginning&nbsp;of&nbsp;fiscal&nbsp;year&nbsp;(7/1)</font></p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,038,500&nbsp;</font></p></td>
			<td valign=bottom style='width:28px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:78px;border:medium none;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.60&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,204,316&nbsp;</font></p></td>
			<td valign=bottom style='width:30px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:77px;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.68&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Granted</font></p></td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">71,000&nbsp;</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.51&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">71,000&nbsp;</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.52&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Exercised</font></p></td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(25,000)</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.77&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.9pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Forfeited</font></p></td>
			<td width=88 valign=bottom style='width:65.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.9pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(85,000)</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.9pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2.28&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Outstanding&nbsp;at&nbsp;end&nbsp;of&nbsp;period&nbsp;(12/31)</font></p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,109,500&nbsp;</font></p></td>
			<td valign=bottom style='width:28px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:78px;border:medium none;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.59&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,165,316&nbsp;</font></p></td>
			<td valign=bottom style='width:30px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:77px;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.65&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercisable&nbsp;at&nbsp;end&nbsp;of&nbsp;period&nbsp;(12/31)</font></p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">882,750&nbsp;</font></p></td>
			<td valign=bottom style='width:28px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:78px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.56&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">916,816&nbsp;</font></p></td>
			<td valign=bottom style='width:30px;padding:1.1pt;
  height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:77px;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.47&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-average&nbsp;fair&nbsp;value&nbsp;per</font></p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=15 valign=bottom style='width:11.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=109 colspan=2 valign=bottom style='width:82.05pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.7pt'>
			<td width=305 valign=bottom style='width:229.05pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Option&nbsp;granted&nbsp;during&nbsp;the&nbsp;period</font></p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:28px;border-bottom:
  1.0pt solid windowtext;padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:78px;border-bottom:
  1.0pt solid windowtext;padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.77&nbsp;</font></p></td>
			<td width=15 valign=bottom style='width:11.4pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=88 valign=bottom style='width:65.8pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:30px;border-bottom:
  1.0pt solid windowtext;padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:77px;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.88&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-10-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-indent:.5in;text-autospace:none'>The following
table summarizes information regarding options outstanding and options
exercisable at December 31, 2007: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
 style='width:512.9pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=85 valign=top style='width:64.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>
			<b><font size="2">&nbsp;</font></b></p></td>
			<td width=71 valign=top style='width:53.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=98 valign=top style='width:73.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=81 valign=top style='width:60.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=53 valign=top style='width:39.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=26 valign=top style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=top style='width:53.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=77 valign=top style='width:.8in;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=14 valign=top style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=64 valign=top style='width:47.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=85 valign=bottom style='width:64.1pt;border-top:solid windowtext 1.0pt;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.55pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=194 colspan=3 valign=bottom style='width:145.3pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Options&nbsp;Outstanding</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=26 valign=bottom style='width:19.45pt;border:none;border-top:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=240 colspan=5 valign=bottom style='width:180.2pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Options&nbsp;Exercisable</font></p></td>
		</tr>
		<tr style='height:24.85pt'>
			<td width=85 valign=bottom style='width:64.1pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:24.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=98 valign=bottom style='width:73.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
			<td width=95 colspan=2 valign=bottom style='width:71.45pt;border:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:24.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Aggregate</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=91 colspan=2 valign=bottom style='width:68.15pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  24.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
			<td width=78 colspan=2 valign=bottom style='width:58.45pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:24.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Aggregate</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=85 valign=bottom style='width:64.1pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Range&nbsp;of</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Number</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Remaining</font></p></td>
			<td width=95 colspan=2 valign=bottom style='width:71.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Intrinsic</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Number</font></p></td>
			<td width=91 colspan=2 valign=bottom style='width:68.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise</font></p></td>
			<td width=78 colspan=2 valign=bottom style='width:58.45pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Intrinsic</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=85 valign=bottom style='width:64.1pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise&nbsp;Price</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Outstanding</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Contractual&nbsp;Life</font></p></td>
			<td width=95 colspan=2 valign=bottom style='width:71.45pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Price</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Value</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Outstanding</font></p></td>
			<td width=91 colspan=2 valign=bottom style='width:68.15pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Price</font></p></td>
			<td width=78 colspan=2 valign=bottom style='width:58.45pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Value</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=85 valign=bottom style='width:64.1pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$0.42&nbsp;to&nbsp;$0.81</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">260,000&nbsp;</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4.2&nbsp;years</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=81 valign=bottom style='width:60.9pt;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.70&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=53 valign=bottom style='width:39.75pt;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">195,400&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">260,000&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=77 valign=bottom style='width:.8in;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.70&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=64 valign=bottom style='width:47.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">195,400&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=85 valign=bottom style='width:64.1pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$1.08&nbsp;to&nbsp;$1.56</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">412,000&nbsp;</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6.8&nbsp;years</font></p></td>
			<td width=95 colspan=2 valign=bottom style='width:71.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.37&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=53 valign=bottom style='width:39.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">40,500&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">241,500&nbsp;</font></p></td>
			<td width=91 colspan=2 valign=bottom style='width:68.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.29&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=64 valign=bottom style='width:47.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">40,500&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.05pt'>
			<td width=85 valign=bottom style='width:64.1pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$1.74&nbsp;to&nbsp;$2.18</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">262,500&nbsp;</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3.9&nbsp;years</font></p></td>
			<td width=95 colspan=2 valign=bottom style='width:71.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2.04&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=53 valign=bottom style='width:39.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">248,750&nbsp;</font></p></td>
			<td width=91 colspan=2 valign=bottom style='width:68.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2.05&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=64 valign=bottom style='width:47.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:16.6pt'>
			<td width=85 valign=bottom style='width:64.1pt;border:none;border-left:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$2.44&nbsp;to&nbsp;$3.30</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">175,000&nbsp;</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">7.5&nbsp;years</font></p></td>
			<td width=95 colspan=2 valign=bottom style='width:71.45pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2.77&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=53 valign=bottom style='width:39.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:16.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">132,500&nbsp;</font></p></td>
			<td width=91 colspan=2 valign=bottom style='width:68.15pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2.83&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=64 valign=bottom style='width:47.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:16.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=85 valign=bottom style='width:64.1pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total</font></p></td>
			<td width=71 valign=bottom style='width:53.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,109,500&nbsp;</font></p></td>
			<td width=98 valign=bottom style='width:73.85pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5.6&nbsp;years</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=81 valign=bottom style='width:60.9pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.59&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=53 valign=bottom style='width:39.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">235,900&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.45pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=71 valign=bottom style='width:53.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">882,750&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=77 valign=bottom style='width:.8in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.56&nbsp;</font></p></td>
			<td width=14 valign=bottom style='width:10.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=64 valign=bottom style='width:47.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">235,900&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>Restricted Stock</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>The following is a summary of restricted share activity in the six months
ending December 31:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=745
 style='width:558.55pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=321 valign=top style='width:240.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
			</td>
			<td width=85 valign=top style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:39px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:82px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=27 valign=top style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=top style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:42px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td valign=top style='width:77px;padding:1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:solid windowtext 1.0pt;
  border-right:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=209 colspan=3 valign=bottom style='width:156.95pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=188 colspan=3 valign=bottom style='width:140.7pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:24.7pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:24.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=85 valign=bottom style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:24.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.7pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:24.7pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Weighted-</font></p>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Average</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Restricted&nbsp;shares</font></p></td>
			<td width=85 valign=bottom style='width:64.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Shares</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise&nbsp;Price</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Shares</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercise&nbsp;Price</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Outstanding&nbsp;at&nbsp;beginning&nbsp;of&nbsp;fiscal&nbsp;year&nbsp;(7/1)</font></p>
			</td>
			<td width=85 valign=bottom style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">255,000&nbsp;</font></p></td>
			<td valign=bottom style='width:39px;padding:1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:82px;border:medium none;padding:1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.38&nbsp;</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td valign=bottom style='width:42px;padding:1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:76px;border-right:
  1.0pt solid windowtext;padding:1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Granted</font></p></td>
			<td width=85 valign=bottom style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Exercised</font></p></td>
			<td width=85 valign=bottom style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.55pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.55pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Forfeited</font></p></td>
			<td width=85 valign=bottom style='width:64.0pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.55pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;border:none;
  border-bottom:double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.55pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.55pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.55pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:90.4pt;border-top:none;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.55pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Outstanding&nbsp;at&nbsp;end&nbsp;of&nbsp;period&nbsp;(12/31)</font></p>
			</td>
			<td width=85 valign=bottom style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">255,000&nbsp;</font></p></td>
			<td valign=bottom style='width:39px;padding:1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:82px;border:medium none;padding:1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1.38&nbsp;</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td valign=bottom style='width:42px;padding:1.1pt;
  height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:76px;border-right:
  1.0pt solid windowtext;padding:1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=85 valign=bottom style='width:64.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=124 colspan=2 valign=bottom style='width:92.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=27 valign=bottom style='width:20.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.4pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.35pt'>
			<td width=321 valign=bottom style='width:240.45pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Exercisable&nbsp;at&nbsp;end&nbsp;of&nbsp;period&nbsp;(12/31)</font></p>
			</td>
			<td width=85 valign=bottom style='width:64.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:39px;border-bottom:
  1.0pt solid windowtext;padding:1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:82px;border-bottom:
  1.0pt solid windowtext;padding:1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td width=27 valign=bottom style='width:20.45pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=67 valign=bottom style='width:50.3pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
			<td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:42px;border-bottom:1.0pt solid windowtext;
  padding:1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td valign=bottom style='width:76px;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:12.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>As of December 31, 2007, there was $254,000 of total unrecognized
compensation cost related to 184,167 non vested outstanding restricted shares
with a per share weighted average value of $1.38.&nbsp; The unrecognized expense is
anticipated to be recognized on a straight-line basis over a weighted average
period of 2.2 years.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>Stock Warrants </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-indent:.5in'>At December 31, 2007, warrants to
acquire 100,000 shares of common stock were outstanding. These warrants are
fully vested, have a weighted-average exercise price of $1.25 and a
weighted-average remaining life of 1.5 years.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MAJOR CUSTOMERS</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>We had two major customers (defined as a customer that represents greater
than 10% of the Company&#146;s total revenues) in the six months ended December 31,
2007 and 2006.&nbsp;&nbsp; </p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=514
 style='width:385.35pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=95 valign=top style='width:71.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>
			<b><font size="2">&nbsp;</font></b></p></td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=10 valign=top style='width:7.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.1pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=216 colspan=5 valign=bottom style='width:161.95pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;months&nbsp;ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:74.75pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.1pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=216 colspan=5 valign=bottom style='width:161.95pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(unaudited)</font></p></td>
			<td width=100 colspan=2 valign=bottom style='width:74.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.25pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=206 colspan=4 valign=bottom style='width:154.15pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=202 colspan=4 valign=bottom style='width:151.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=95 valign=bottom style='width:71.55pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.1pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Revenues</font></p></td>
			<td width=103 colspan=2 valign=bottom style='width:77.05pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Accts.&nbsp;Rec.</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Revenues</font></p></td>
			<td width=100 colspan=2 valign=bottom style='width:74.75pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Accts.&nbsp;Rec.</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=95 valign=bottom style='width:71.55pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Customer&nbsp;1</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,569,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">520,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.1pt;border:none;border-top:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,776,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">902,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Customer&nbsp;2</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,083,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.9pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">701,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.1pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,033,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">388,000&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-11-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>NOTE 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>COMMITMENTS AND CONTINGENCIES</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Our manufacture and distribution of certain products involves a risk of
legal action, and, from time to time, we are named as defendants in lawsuits.
It is not reasonably possible to estimate the awards or damages, or the range
of awards or damages, if any, we might incur in connection with such
litigation.&nbsp; Management is not aware of any material actual, pending or
threatened litigation at this time.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-12-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>&nbsp;<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>Item 2. Management's
Discussion and Analysis of Financial Condition and Results of Operations</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>COMPANY OVERVIEW</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>The following discussion and analysis provides information that the
Company's management believes is relevant to an assessment and understanding of
our results of operations and financial condition for each of the three and six
month periods ended December 31, 2007 and 2006, respectively.&nbsp; This discussion
should be read in conjunction with the Consolidated Financial Statements and
the Notes thereto included elsewhere in this Report. This Report contains
certain forward-looking statements and information. The cautionary statements
included herein should be read as being applicable to all related
forward-looking statements wherever they may appear.&nbsp; Our actual future results
could differ materially from those discussed herein.&nbsp; Our critical accounting
policies relate to inventory valuation for slow moving items, impairment of
goodwill, warranty reserves, and recoverability of deferred income taxes.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Except for the historical information contained herein, the matters
discussed in this Quarterly Report on Form 10-QSB, including discussions of our
product development plans, business strategies and market factors influencing
our results, are forward-looking statements that involve certain risks and
uncertainties. Actual results may differ from those anticipated by us as a
result of various factors, both foreseen and unforeseen, including, but not
limited to, our ability to continue to develop new products and increase
systems sales in markets characterized by rapid technological evolution,
consolidation within our target marketplace and among our competitors, and
competition from larger, better capitalized competitors.&nbsp; Many other economic,
competitive, governmental and technological factors could impact our ability to
achieve our goals.&nbsp; Interested persons are urged to review the risks described
herein, as well as in our other public disclosures and filings with the
Securities and Exchange Commission.&nbsp; We refer you to the risk factors and
cautionary language contained in our reports filed with the Securities and
Exchange Commission from time to time, including, but not limited to, those
risks and uncertainties which may be listed in our Annual Report on Form
10-KSB.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Pro-Dex, Inc. (&#147;Company,&#148; &#147;Pro-Dex&#148;, &#147;we,&#148; &#147;our,&#148;, &#147;us&#148;), with operations in Santa Ana, California, Beaverton,
Oregon and Carson City, Nevada, specializes in bringing speed to market in the
development and manufacture of technology-based solutions that incorporate
embedded motion control, miniature rotary drive systems and fractional
horsepower DC motors, serving the medical, dental, semi-conductor, scientific
research and aerospace markets. Pro-Dex's products are found in hospitals,
dental offices, medical engineering labs, commercial and military aircraft,
scientific research facilities and high tech manufacturing operations around
the world. The company names of Micro Motors, Oregon Micro Systems, and
Astromec are used for marketing purposes as brand names.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Pro-Dex&#146;s principal headquarters are located at 151 E. Columbine Avenue,
Santa Ana, California 92707 and our phone number is 714-241-4411.&nbsp; Our Internet
address is  www.pro-dex.com .&nbsp; Our annual
reports on Form 10-KSB, quarterly reports on Form 10-QSB, current reports on
Form 8-K, amendments to those reports and other Securities and Exchange
Commission (&#147;SEC&#148;) filings, are available free of charge through our website as
soon as reasonably practicable after such reports are electronically filed
with, or furnished to, the SEC.&nbsp; In addition, our Code of Ethics and other
corporate governance documents may be found on our website at the Internet
address set forth above.&nbsp; Our filings with the SEC may also be read and copied at the SEC&#146;s Public Reference Room at 100
F Street, N.E., Washington, D.C. 20549.&nbsp; You may obtain information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.&nbsp;
The SEC maintains an Internet site that contains reports, proxy and information
statements, and other information regarding issuers that file electronically
with the SEC at  www.sec.gov . </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-13-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>Description of Business</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>The majority of our revenue is derived from designing, developing and
manufacturing rotary drive systems for the medical device and dental
industries, motion control software and hardware for industrial and scientific
applications and fractional horsepower DC motors for aerospace, medical and
military applications. A large part of the revenue of the Company has been
driven by developing and selling numerous types of private label rotary drive
systems for use in dental, cranial, spinal, arthroscopic and orthopedic
surgery.&nbsp; The Company distributes its own line of pneumatic and electric dental
hand pieces sold under the Micro Motors name utilizing a network of independent
sales representatives across North America.&nbsp; Other revenue sources include
designing and manufacturing miniature pneumatic motors, fractional horsepower
DC motors and motion control systems for industrial applications in the
automotive, aerospace, and apparel industries.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>All years relating to financial data herein shall refer to fiscal years
ending June 30, unless indicated otherwise.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Company-funded research and development supports the development of
generic rotary drive, motion control, and electric motor technology platforms.&nbsp;
The costs of which are expensed when incurred.&nbsp; We seek customer-funded
projects to customize these platforms to specific customer requirements.&nbsp;
Company-funded research and development projects are generally expected to
convert to customer-funded projects within six to eighteen months.&nbsp; Company
funded project costs not associated with contracts or purchase orders are
expensed as incurred.&nbsp; In the three months ended December 31, 2007, $635,000
was expensed as research and development; an increase of $56,000 from the
$579,000 expensed in the three months ended December 31, 2006.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";'>For customer-funded development projects, costs are
capitalized and recognized as a cost of sales when specific deliverables within
the development contracts are earned, matching the costs to the revenue. &nbsp;Customer-funded
research and development provided $208,000 in revenue for the three months
ended December 31, 2007, compared to a reduction in revenue of $61,000 for the
three months ended December 31, 2006, reflecting an increase in development
fees billable on new projects in the current quarter and the net effect of an
$84,000 refunded development fee in the quarter ended December 31, 2006.&nbsp; In
the three months ended December 31, 2007, $39,000 was recognized as cost of
sales for non recurring engineering work, compared to $86,000 recognized as
cost of sales in the three months ended December 31, 2006, consistent with the
increase in development fees billable during the quarter and absent the higher
costs associated with completed and cancelled contracts from the prior year.&nbsp; The
results of customer-funded development work are intended to provide long-term
exclusive manufacturing agreements and may provide the customer with the
retention of the intellectual property developed.&nbsp; The identity of our
customers is generally protected by a non-disclosure agreement.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";text-autospace:ideograph-numeric ideograph-other'>The
Company&#146;s revenue is derived from five main customer types.&nbsp; The proportion of total
sales compared sales to each customer type and sales by location is noted in
the table below (unaudited):</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=752
 style='width:563.85pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=220 valign=top style='width:165.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=61 valign=top style='width:45.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=57 valign=top style='width:42.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=50 valign=top style='width:37.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=53 valign=top style='width:.55in;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=13 valign=top style='width:9.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=66 valign=top style='width:49.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=55 valign=top style='width:41.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=57 valign=top style='width:42.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=48 valign=top style='width:36.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=254 colspan=6 valign=bottom style='width:190.7pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=264 colspan=6 valign=bottom style='width:198.15pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=220 valign=bottom style='width:165.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Sales&nbsp;by&nbsp;customer&nbsp;type&nbsp;($'000)</font></p>
			</td>
			<td width=135 colspan=3 valign=bottom style='width:101.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=119 colspan=3 valign=bottom style='width:89.15pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=140 colspan=3 valign=bottom style='width:104.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=124 colspan=3 valign=bottom style='width:93.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:14.6pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Dental</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=61 valign=bottom style='width:45.4pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">786&nbsp;</font></p></td>
			<td width=57 valign=bottom style='width:42.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">13%&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.4pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=50 valign=bottom style='width:37.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,109&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">24%&nbsp;</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.05pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=66 valign=bottom style='width:49.55pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,749&nbsp;</font></p></td>
			<td width=55 valign=bottom style='width:41.25pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">14%&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.05pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=57 valign=bottom style='width:42.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,187&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">22%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Medical</font></p></td>
			<td width=78 colspan=2 valign=bottom style='width:58.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,519&nbsp;</font></p></td>
			<td width=57 valign=bottom style='width:42.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">57%&nbsp;</font></p></td>
			<td width=66 colspan=2 valign=bottom style='width:49.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,681&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">36%&nbsp;</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=85 colspan=2 valign=bottom style='width:63.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,725&nbsp;</font></p></td>
			<td width=55 valign=bottom style='width:41.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">56%&nbsp;</font></p></td>
			<td width=76 colspan=2 valign=bottom style='width:56.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,850&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">39%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Industrial</font></p></td>
			<td width=78 colspan=2 valign=bottom style='width:58.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">919&nbsp;</font></p></td>
			<td width=57 valign=bottom style='width:42.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">15%&nbsp;</font></p></td>
			<td width=66 colspan=2 valign=bottom style='width:49.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">879&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">19%&nbsp;</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=85 colspan=2 valign=bottom style='width:63.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,631&nbsp;</font></p></td>
			<td width=55 valign=bottom style='width:41.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">13%&nbsp;</font></p></td>
			<td width=76 colspan=2 valign=bottom style='width:56.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,761&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Aerospace</font></p></td>
			<td width=78 colspan=2 valign=bottom style='width:58.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">422&nbsp;</font></p></td>
			<td width=57 valign=bottom style='width:42.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">7%&nbsp;</font></p></td>
			<td width=66 colspan=2 valign=bottom style='width:49.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">557&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12%&nbsp;</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=85 colspan=2 valign=bottom style='width:63.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">985&nbsp;</font></p></td>
			<td width=55 valign=bottom style='width:41.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=76 colspan=2 valign=bottom style='width:56.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,147&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.6pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Government,&nbsp;repairs&nbsp;and&nbsp;other</font></p>
			</td>
			<td width=78 colspan=2 valign=bottom style='width:58.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">477&nbsp;</font></p></td>
			<td width=57 valign=bottom style='width:42.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=66 colspan=2 valign=bottom style='width:49.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">405&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9%&nbsp;</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=85 colspan=2 valign=bottom style='width:63.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,024&nbsp;</font></p></td>
			<td width=55 valign=bottom style='width:41.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=76 colspan=2 valign=bottom style='width:56.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">919&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=220 valign=bottom style='width:165.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;Sales</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=61 valign=bottom style='width:45.4pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,123&nbsp;</font></p></td>
			<td width=57 valign=bottom style='width:42.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.4pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=50 valign=bottom style='width:37.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,631&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=13 valign=bottom style='width:9.9pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=bottom style='width:14.05pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=66 valign=bottom style='width:49.55pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12,114&nbsp;</font></p></td>
			<td width=55 valign=bottom style='width:41.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.05pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=57 valign=bottom style='width:42.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,864&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:
0in;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-14-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=714
 style='width:535.35pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=174 valign=top style='width:130.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
  text-autospace:none'>&nbsp;</p></td>
			<td width=18 valign=top style='width:13.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=49 valign=top style='width:37.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=53 valign=top style='width:.55in;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=56 valign=top style='width:42.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=53 valign=top style='width:.55in;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=26 valign=top style='width:19.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=58 valign=top style='width:43.7pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=76 valign=top style='width:56.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=49 valign=top style='width:37.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=48 valign=top style='width:36.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=174 valign=bottom style='width:130.35pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=246 colspan=6 valign=bottom style='width:184.75pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=26 valign=bottom style='width:19.8pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=267 colspan=6 valign=bottom style='width:200.45pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=174 valign=bottom style='width:130.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Sales&nbsp;by&nbsp;location&nbsp;($'000)</font></p>
			</td>
			<td width=120 colspan=3 valign=bottom style='width:89.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=126 colspan=3 valign=bottom style='width:94.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=26 valign=bottom style='width:19.8pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=152 colspan=3 valign=bottom style='width:113.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=115 colspan=3 valign=bottom style='width:86.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=174 valign=bottom style='width:130.35pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Santa&nbsp;Ana</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=49 valign=bottom style='width:37.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,602&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">75%&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=56 valign=bottom style='width:42.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,765&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">60%&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.8pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=58 valign=bottom style='width:43.7pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8,738&nbsp;</font></p></td>
			<td width=76 valign=bottom style='width:56.95pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">72%&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=49 valign=bottom style='width:37.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,026&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">61%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.6pt'>
			<td width=174 valign=bottom style='width:130.35pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Beaverton</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">851&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">14%&nbsp;</font></p></td>
			<td width=74 colspan=2 valign=bottom style='width:55.25pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,005&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">22%&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.8pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=76 colspan=2 valign=bottom style='width:56.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,837&nbsp;</font></p></td>
			<td width=76 valign=bottom style='width:56.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">15%&nbsp;</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,061&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.6pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">21%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=174 valign=bottom style='width:130.35pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Carson&nbsp;City</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">670&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">11%&nbsp;</font></p></td>
			<td width=74 colspan=2 valign=bottom style='width:55.25pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">861&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">19%&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.8pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=76 colspan=2 valign=bottom style='width:56.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,539&nbsp;</font></p></td>
			<td width=76 valign=bottom style='width:56.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">13%&nbsp;</font></p></td>
			<td width=67 colspan=2 valign=bottom style='width:50.3pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,777&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">18%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.65pt'>
			<td width=174 valign=bottom style='width:130.35pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;Sales</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=49 valign=bottom style='width:37.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,123&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=56 valign=bottom style='width:42.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,631&nbsp;</font></p></td>
			<td width=53 valign=bottom style='width:.55in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=26 valign=bottom style='width:19.8pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=58 valign=bottom style='width:43.7pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12,114&nbsp;</font></p></td>
			<td width=76 valign=bottom style='width:56.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=49 valign=bottom style='width:37.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,864&nbsp;</font></p></td>
			<td width=48 valign=bottom style='width:36.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.65pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Medical product sales represent the manufacture of products that utilize
proprietary designs developed by us under exclusive design and supply
agreements.&nbsp; Our dental products are primarily sold to original equipment
manufacturers and dental product distributors.&nbsp; An independent dealer network
markets our own branded line of dental products; including the Intraflow<sup>TM</sup>
dental anesthesia product we acquired the rights to in October 2005.&nbsp; We also
design and manufacture embedded multi-axis motion controllers used to regulate
the motion of servo and stepper motors, predominantly for the factory
automation, scientific research, and medical analysis equipment industries.&nbsp;
The controllers support the platforms for PCI, VME, ISA, and cPCI busses as
well as stand-alone requirements.&nbsp; In addition, we make and sell pneumatic
motors for industrial applications that are marketed directly to end-users and
through industrial supply distributors.&nbsp; We added significant sales with the
purchase of the assets of Astromec, Inc., and the establishment Pro-Dex
Astromec, Inc. in January 2006.&nbsp; Pro-Dex Astromec&#146;s products include high
reliability fractional horsepower DC motors designed for harsh environments
primarily for the aerospace and medical markets.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>We hold the following three independently verified certifications: ISO
9001:2000, ISO 13485 revised 1998, and Medical Device Directive 93\42\EEC Annex
II company.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>At the present time, we are generally able to fill orders within sixty
(60) days.&nbsp; At December 31, 2007, we had a backlog, including orders for
delivery beyond 60 days, of $11.7 million compared with a backlog of $11.7
million at December 31, 2006 and $10.1 million at June 30, 2007.&nbsp; We expect to
ship most of our backlog in fiscal year 2008 and the remainder in fiscal year
2009.&nbsp; The steady backlog compared to December 2006 and the increase from June
2007 is due to normal fluctuations in the timing of receipt and shipment of
orders.&nbsp; We do not typically experience seasonal fluctuations in our new order
bookings, but may experience variability in our new order bookings due to the
timing of major new product launches.&nbsp; Similarly, we do not typically experience
seasonal fluctuations in our shipments and revenues.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-15-</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>Results of Operations </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>For the Three-Month periods
ended December 31, 2007 and 2006</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>The following table sets forth the
periods indicated and the percentage of net revenues represented by each item
in our Consolidated Statements of Operations. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=602
 style='width:451.4pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=286 valign=top style='width:214.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=62 valign=top style='width:46.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=top style='width:59.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=62 valign=top style='width:46.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=top style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=top style='width:.75pt;padding:1.1pt;
  height:.05pt; border-bottom-style:none; border-bottom-width:medium'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(In&nbsp;Thousands)</font></p></td>
			<td width=315 colspan=6 valign=bottom style='width:236.35pt;border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:medium none windowtext;
  padding:1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;border-top:medium none windowtext;
  border-left:1px solid #000000;border-bottom:medium none;border-right:medium none windowtext;
  padding:1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=158 colspan=3 valign=bottom style='width:118.15pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=158 colspan=3 valign=bottom style='width:118.2pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;border-top:medium none;border-left:
  1px solid #000000;border-bottom:medium none windowtext;border-right:medium none windowtext;
  padding:1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;sales:</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,123&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,631&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt;
  height:14.1pt; border-top-style:none; border-top-width:medium'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cost&nbsp;of&nbsp;sales</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,769&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">62%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,262&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">70%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;Profit</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,354&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">38%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,369&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">30%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Selling,&nbsp;general&nbsp;and&nbsp;administrative&nbsp;expenses</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,218&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">20%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,086&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">23%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Research&nbsp;and&nbsp;development&nbsp;costs</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">635&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">10%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">579&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">13%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Income&nbsp;(Loss)&nbsp;from&nbsp;Operations</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">501&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(296)</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-6%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;interest&nbsp;and&nbsp;other&nbsp;income&nbsp;(expense)</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">22&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(40)</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-1%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Provision&nbsp;(benefit)&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">218&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(198)</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-4%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=286 valign=bottom style='width:214.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;income&nbsp;(loss)</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">305&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5%&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(138)</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-3%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
		<tr style='height:12.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>Net Sales.</b>&nbsp;
Consolidated sales increased from $4,631,000 to $6,123,000 ($1,492,000 or 32%)
for the quarter ended December 31, 2007 compared to the quarter ended December
31, 2006.&nbsp; The increase was due to continued growth in medical product sales,
offsetting declines in revenues for the other product lines.&nbsp;&nbsp;&nbsp;&nbsp;
</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>Although
selective price increases and decreases were implemented in response to market
conditions, the majority of the sales changes for each product line are due
primarily to changes in sales volume, not the effect of price changes. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Gross Profit and Gross Profit Percentage of Sales</b>.&nbsp; Our
consolidated gross profit for the quarter ended December 31, 2007 increased
$985,000 or 72% over the same quarter in the previous year due to the higher
level of sales and increased profitability in medical products.&nbsp; Fiscal year
2008 included over $200,000 in profitable development fees, where 2007 had
$40,000 in fees billed at a loss.&nbsp; Gross profit as a percentage of sales
increased to 38% for the quarter ended December 31, 2007 compared to 30% for
the quarter ended December 31, 2006. Gross profit margins were enhanced 3% by the
development fees, 2% by better manufacturing cost controls and 3% by increased
manufacturing efficiencies.&nbsp; Warranty costs accounted for approximately 5%
reduction in margin in each quarter. Gross profit and gross profit as a
percentage of sales were as follows: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=568
 style='width:425.85pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=229 valign=top style='width:171.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
  text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'><b>
			<font size="2">&nbsp;</font></b></p></td>
			<td width=11 valign=top style='width:8.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=111 valign=top style='width:83.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=11 valign=top style='width:8.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=117 valign=top style='width:87.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=89 valign=top style='width:66.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=229 valign=bottom style='width:171.65pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=250 colspan=4 valign=bottom style='width:187.35pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=89 valign=bottom style='width:66.85pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.8pt'>
			<td width=229 valign=bottom style='width:171.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=122 colspan=2 valign=bottom style='width:91.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=128 colspan=2 valign=bottom style='width:95.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=89 valign=bottom style='width:66.85pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=229 valign=bottom style='width:171.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;Profit</font></p></td>
			<td width=11 valign=bottom style='width:8.25pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=111 valign=bottom style='width:83.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,354,000&nbsp;</font></p></td>
			<td width=11 valign=bottom style='width:8.25pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=117 valign=bottom style='width:87.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,369,000&nbsp;</font></p></td>
			<td width=89 valign=bottom style='width:66.85pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">72%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=229 valign=bottom style='width:171.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;Profit&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=122 colspan=2 valign=bottom style='width:91.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">38%&nbsp;</font></p></td>
			<td width=128 colspan=2 valign=bottom style='width:95.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">30%&nbsp;</font></p></td>
			<td width=89 valign=bottom style='width:66.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Selling, General and Administrative Costs (S, G&amp;A)</b>.&nbsp;
Consolidated S, G &amp; A expenses increased to $1,218,000 for the quarter ended
December 31, 2007 from $1,087,000 for the quarter ended December 31, 2006.&nbsp; The
increase in selling expense is mainly due to higher labor costs ($92,000)
offset primarily by lower bad debt ($43,000) and advertising costs ($22,000).&nbsp;
The increase in S, G &amp; A costs was due to higher labor ($104,000) and information
technology support costs ($23,000).&nbsp; As a percentage of sales, S, G&amp;A
expenses decreased to 20% of sales from 23% of sales for the quarter ended
December 31, 2007 and 2006 respectively.&nbsp; S, G&amp;A costs were as follows:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-16-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=505
 style='width:378.7pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=188 valign=top style='width:140.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=104 valign=top style='width:77.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 valign=top style='width:74.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=top style='width:58.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.65pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=239 colspan=4 valign=bottom style='width:179.1pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=79 valign=bottom style='width:58.95pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:15.1pt'>
			<td width=188 valign=bottom style='width:140.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:91.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=116 colspan=2 valign=bottom style='width:87.2pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=79 valign=bottom style='width:58.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Decrease)</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.65pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Selling</font></p></td>
			<td width=19 valign=bottom style='width:14.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:77.8pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">352,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=100 valign=bottom style='width:74.65pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">340,000&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:58.95pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative</font></p></td>
			<td width=19 valign=bottom style='width:14.1pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:77.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">866,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=100 valign=bottom style='width:74.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">746,000&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:58.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">16%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.1pt'>
			<td width=188 valign=bottom style='width:140.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;S,&nbsp;G&amp;A</font></p></td>
			<td width=19 valign=bottom style='width:14.1pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:77.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,218,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=100 valign=bottom style='width:74.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,086,000&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:58.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">S,&nbsp;G&amp;A&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:91.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">20%&nbsp;</font></p></td>
			<td width=116 colspan=2 valign=bottom style='width:87.2pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">23%&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:58.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>Research and
Development (R&amp;D) Costs</b>. &nbsp;Company-funded research and development
expenses increased $56,000 to $635,000 for the quarter ended December 31, 2007
from $579,000 for the quarter ended December 31, 2006, an increase of 10%.&nbsp; The
increase was due to approximately $38,000 in higher labor costs and $9,000 for
increased independent research costs to support the higher activity levels.&nbsp;
Company-funded research and development costs were as follows:</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=553
 style='width:414.65pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=243 valign=top style='width:181.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:15.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=93 valign=top style='width:70.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=102 valign=top style='width:76.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=75 valign=top style='width:56.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.35pt'>
			<td width=243 valign=bottom style='width:181.95pt;border-top:medium none;border-left:
  medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:15.35pt'>&nbsp;</td>
			<td colspan=4 valign=bottom style='width:235px;border-top:1pt solid #000000;
  border-left:medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:15.35pt'>
			<p align="center"><font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></td>
			<td width=75 valign=bottom style='width:56.35pt;border-top:1pt solid #000000;border-left:
  medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:15.35pt'>&nbsp;</td>
		</tr>
		<tr style='height:15.35pt'>
			<td width=243 valign=bottom style='width:181.95pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.35pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=114 colspan=2 valign=bottom style='width:85.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=75 valign=bottom style='width:56.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.35pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:15.4pt'>
			<td width=243 valign=bottom style='width:181.95pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Research&nbsp;and&nbsp;Development&nbsp;costs</font></p>
			</td>
			<td width=20 valign=bottom style='width:15.3pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=93 valign=bottom style='width:70.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">635,000&nbsp;</font></p></td>
			<td width=19 valign=bottom style='width:14.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=102 valign=bottom style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">579,000&nbsp;</font></p></td>
			<td width=75 valign=bottom style='width:56.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">10%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.4pt'>
			<td width=243 valign=bottom style='width:181.95pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">R&nbsp;&amp;&nbsp;D&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=114 colspan=2 valign=bottom style='width:85.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">10%&nbsp;</font></p></td>
			<td width=121 colspan=2 valign=bottom style='width:91.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.4pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">13%&nbsp;</font></p></td>
			<td width=75 valign=bottom style='width:56.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.4pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>Operating
Profit (loss) and Operating Profit (loss) </b><b>Percentage of Sales</b>.&nbsp;
Our consolidated operating profit for the quarter ended December 31, 2007
increased to a profit of $501,000 compared to an operating loss of $296,000 for
the same quarter in the previous year.&nbsp; The increase in operating profit was
due to the higher sales and gross margin coupled with the controlled growth in
S, G&amp;A and research and development expenses.&nbsp; Consequently, operating
profit as a percentage of sales increased to 8% for the quarter ended December
31, 2007 compared to -6% for the quarter ended December 31, 2006.&nbsp; Operating
profit and margin were as follows: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>&nbsp;</b></p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=601
 style='width:450.7pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=284 valign=top style='width:213.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
  text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'><b>
			<font size="2">&nbsp;</font></b></p></td>
			<td width=10 valign=top style='width:7.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=105 valign=top style='width:78.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=11 valign=top style='width:7.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=105 valign=top style='width:78.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=86 valign=top style='width:64.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=284 valign=bottom style='width:213.15pt;border-top:medium none;border-left:
  medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:15.2pt'>&nbsp;</td>
			<td colspan=4 valign=bottom style='width:230px;border-top:1pt solid #000000;
  border-left:medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:15.2pt'>
			<p align="center"><font size="2">Three&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></td>
			<td width=86 valign=bottom style='width:64.5pt;border-top:1pt solid #000000;border-left:
  medium none;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=284 valign=bottom style='width:213.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=115 colspan=2 valign=bottom style='width:86.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=115 colspan=2 valign=bottom style='width:86.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=86 valign=bottom style='width:64.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Decrease)</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=284 valign=bottom style='width:213.15pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Operating&nbsp;Profit&nbsp;(loss)</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=105 valign=bottom style='width:78.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">501,000&nbsp;</font></p></td>
			<td width=11 valign=bottom style='width:7.9pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=105 valign=bottom style='width:78.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(296,000)</font></p></td>
			<td width=86 valign=bottom style='width:64.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">269%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=284 valign=bottom style='width:213.15pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Operating&nbsp;Profit&nbsp;(loss)&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=115 colspan=2 valign=bottom style='width:86.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=115 colspan=2 valign=bottom style='width:86.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-6%&nbsp;</font></p></td>
			<td width=86 valign=bottom style='width:64.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
text-autospace:none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
text-autospace:none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Royalties and Other Income. </b>&nbsp;We received $14,000 in royalty income
in the three months ended December 31, 2007, compared to $18,000 in the same
period during the prior year.&nbsp; We recognized an additional $48,000 in income in
the three months ended December 31, 2007 for gains associated with early and
discounted payment of debt related to the Intravantage deferred payables. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Net Interest Expense. </b>&nbsp;Net interest expense for the quarter ended
December 31, 2007 was $41,000 compared to $58,000 in the quarter ended December
31, 2006, due to higher cash balances maintained through the quarter and the
early payment of the Intravantage deferred payables.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Income Tax (Benefit) Provision</b>. Our estimated effective combined
federal and state tax rate on income from operations for the quarter ended
December 31, 2007 resulted in a 42% provision of earnings before tax compared
to a benefit of 70% of earnings before tax for the quarter ended December 31,
2006.&nbsp; The difference in the 2007 rate is due to the prior year&#146;s operating
loss combined with the use of state tax credits and a retroactive reinstatement
of the federal research and development credit for $64,000.&nbsp; The reinstatement
was for expenses incurred after December 31, 2005.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-17-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Net Income/loss.</b>&nbsp; Our net income for the three months ended
December 31, 2007 was $305,000 or $0.03 per share on a basic and diluted basis,
as compared to a net loss of $138,000 or $0.01 per share on a basic and diluted
basis for the three months ended December 31, 2006.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>For the Six-Month periods
ended December 31, 2007 and 2006</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>The following table sets forth the
periods indicated and the percentage of net revenues represented by each item
in our Consolidated Statements of Operations. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=602
 style='width:451.4pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=286 valign=top style='width:214.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=62 valign=top style='width:46.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=top style='width:59.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=62 valign=top style='width:46.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=top style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=top style='width:.75pt;padding:1.1pt;
  height:.05pt; border-bottom-style:none; border-bottom-width:medium'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(In&nbsp;Thousands)</font></p></td>
			<td width=315 colspan=6 valign=bottom style='width:236.35pt;border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:medium none windowtext;
  padding:1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;border-top:medium none windowtext;
  border-left:1px solid #000000;border-bottom:medium none;border-right:medium none windowtext;
  padding:1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=158 colspan=3 valign=bottom style='width:118.15pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=158 colspan=3 valign=bottom style='width:118.2pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;border-top:medium none;border-left:
  1px solid #000000;border-bottom:medium none windowtext;border-right:medium none windowtext;
  padding:1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;sales:</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12,114&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">9,864&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">100%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt;
  height:14.1pt; border-top-style:none; border-top-width:medium'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cost&nbsp;of&nbsp;sales</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">7,608&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">63%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,514&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">66%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;Profit</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,506&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">37%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,350&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">34%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Selling,&nbsp;general&nbsp;and&nbsp;administrative&nbsp;expenses</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,276&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">19%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,994&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">20%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Research&nbsp;and&nbsp;development&nbsp;costs</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,209&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">10%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,226&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Income&nbsp;from&nbsp;Operations</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,021&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">130&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;interest&nbsp;and&nbsp;other&nbsp;expense</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(14)</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(87)</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-1%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Provision&nbsp;(benefit)&nbsp;&nbsp;for&nbsp;income&nbsp;taxes</font></p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">376&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3%&nbsp;</font></p></td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(60)</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-1%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.75pt'>
			<td width=286 valign=bottom style='width:214.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;Income</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">631&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">5%&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  double windowtext 2.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=62 valign=bottom style='width:46.5pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">103&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.1pt;border-top:none;border-left:
  none;border-bottom:double windowtext 2.25pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.75pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1%&nbsp;</font></p></td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.75pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.1pt'>
			<td width=286 valign=bottom style='width:214.3pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 colspan=2 valign=bottom style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=bottom style='width:59.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=1 valign=bottom style='width:.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>Net Sales.</b>&nbsp;
Consolidated net sales increased to $12,114,000 from $9,864,000 ($2,250,000 or
23%) for the six months ended December 31, 2007, compared to the six months
ended December 31, 2006.&nbsp; Increases in medical shipments of $2,875,000 more
than offset the combined decreases in dental, industrial and aerospace shipments
of $730,000.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>Although
selective price increases and decreases were implemented in response to market
conditions, the majority of the sales changes for each product line are due
primarily to changes in sales volume, not the effect of price changes. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Gross Profit and Gross Profit Percentage of Sales</b>.&nbsp; Our
consolidated gross profit for the six months ended December 31, 2007 increased $1,156,000
or 35% over the same period in the previous year due to the higher sales levels
of medical products and stable warranty expenses.&nbsp; Gross profit as a percentage
of sales increased to 37% for the six months ended December 31, 2007 compared
to 34% for the six months ended December 31, 2006.&nbsp; Gross profit margins were
enhanced 1% by development fees, 1% by better manufacturing cost controls and 1%
by increased manufacturing efficiencies.&nbsp; Warranty costs represented
approximately 5% of sales in each period. &nbsp;Gross profit and gross profit as a
percentage of sales were as follows: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=568
 style='width:425.85pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=229 valign=top style='width:171.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
  text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'><b>
			<font size="2">&nbsp;</font></b></p></td>
			<td width=11 valign=top style='width:8.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=111 valign=top style='width:83.35pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=11 valign=top style='width:8.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=117 valign=top style='width:87.5pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=89 valign=top style='width:66.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=229 valign=bottom style='width:171.65pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=250 colspan=4 valign=bottom style='width:187.35pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=89 valign=bottom style='width:66.85pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:14.8pt'>
			<td width=229 valign=bottom style='width:171.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=122 colspan=2 valign=bottom style='width:91.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=128 colspan=2 valign=bottom style='width:95.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=89 valign=bottom style='width:66.85pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.8pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=229 valign=bottom style='width:171.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;Profit</font></p></td>
			<td width=11 valign=bottom style='width:8.25pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=111 valign=bottom style='width:83.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">4,506,000&nbsp;</font></p></td>
			<td width=11 valign=bottom style='width:8.25pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=117 valign=bottom style='width:87.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,350,000&nbsp;</font></p></td>
			<td width=89 valign=bottom style='width:66.85pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">35%&nbsp;</font></p></td>
		</tr>
		<tr style='height:14.85pt'>
			<td width=229 valign=bottom style='width:171.65pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Gross&nbsp;Profit&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=122 colspan=2 valign=bottom style='width:91.6pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">37%&nbsp;</font></p></td>
			<td width=128 colspan=2 valign=bottom style='width:95.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:14.85pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">34%&nbsp;</font></p></td>
			<td width=89 valign=bottom style='width:66.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:14.85pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-18-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Selling, General and Administrative Costs (S, G&amp;A)</b>.&nbsp; Consolidated
S, G &amp; A expenses increased to $2,276,000 for the six months ended December
31, 2007 from $1,994,000 for the six months ended December 31, 2006.&nbsp; The
majority of the increase is due to increases in labor and labor related
expenses including FAS 123 (R) expenses of $196,000.&nbsp; There was $59,000 in
higher building occupancy and IT expenses at the Santa Ana facility as it is in
a holdover rental period under its leasehold with higher than market rates, and
with the remainder of the increase due to higher legal fees. As a percentage of
sales, S, G&amp;A expenses decreased to 19% of sales from 20% of sales.&nbsp; S, G
&amp; A costs were as follows:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=506
 style='width:379.45pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=188 valign=top style='width:140.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
			</td>
			<td width=19 valign=top style='width:14.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=104 valign=top style='width:77.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=100 valign=top style='width:74.8pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=79 valign=top style='width:59.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.9pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=239 colspan=4 valign=bottom style='width:179.5pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.1pt'>
			<td width=188 valign=bottom style='width:140.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=117 colspan=2 valign=bottom style='width:87.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.9pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Selling</font></p></td>
			<td width=19 valign=bottom style='width:14.2pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:77.9pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">675,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=100 valign=bottom style='width:74.8pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">678,000&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.9pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">General&nbsp;and&nbsp;administrative</font></p></td>
			<td width=19 valign=bottom style='width:14.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:77.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,601,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=100 valign=bottom style='width:74.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,316,000&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">22%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.1pt'>
			<td width=188 valign=bottom style='width:140.9pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Total&nbsp;S,&nbsp;G&amp;A</font></p></td>
			<td width=19 valign=bottom style='width:14.2pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:77.9pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,276,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=100 valign=bottom style='width:74.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,994,000&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.1pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">14%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=188 valign=bottom style='width:140.9pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">S,&nbsp;G&amp;A&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=123 colspan=2 valign=bottom style='width:92.1pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">19%&nbsp;</font></p></td>
			<td width=117 colspan=2 valign=bottom style='width:87.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">20%&nbsp;</font></p></td>
			<td width=79 valign=bottom style='width:59.05pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>Research and
Development (R&amp;D) Costs</b>.&nbsp; Company-funded research and development
expenses decreased $17,000 to $1,209,000 for the six months ended December 31, 2007
from $1,226,000 for the six months ended December 31, 2006, a decrease of 1%.&nbsp;
The decrease was due to reduced independent research at the Beaverton location.&nbsp;
Company-funded research and development costs were as follows:</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=511
 style='width:383.2pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=217 valign=top style='width:162.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=91 valign=top style='width:68.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=18 valign=top style='width:13.4pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=91 valign=top style='width:68.45pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=73 valign=top style='width:55.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=217 valign=bottom style='width:162.85pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=220 colspan=4 valign=bottom style='width:165.25pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=73 valign=bottom style='width:55.1pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=217 valign=bottom style='width:162.85pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=111 colspan=2 valign=bottom style='width:83.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:81.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=73 valign=bottom style='width:55.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(Decrease)</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=217 valign=bottom style='width:162.85pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Research&nbsp;and&nbsp;Development&nbsp;costs</font></p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=91 valign=bottom style='width:68.45pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,209,000&nbsp;</font></p></td>
			<td width=18 valign=bottom style='width:13.4pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=91 valign=bottom style='width:68.45pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,226,000&nbsp;</font></p></td>
			<td width=73 valign=bottom style='width:55.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">-1%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=217 valign=bottom style='width:162.85pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">R&nbsp;&amp;&nbsp;D&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=111 colspan=2 valign=bottom style='width:83.4pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">10%&nbsp;</font></p></td>
			<td width=109 colspan=2 valign=bottom style='width:81.85pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">12%&nbsp;</font></p></td>
			<td width=73 valign=bottom style='width:55.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<b>Operating
Profit and Operating Profit </b><b>Percentage of Sales</b>.&nbsp; Our
consolidated operating profit for the six months ended December 31, 2007 increased
to $1,021,000 compared to $130,000 for the same period in the previous year. &nbsp;The
increase in operating profit was due to the higher sales and gross margin
coupled with the controlled growth in S, G&amp;A and research and development
expenses.&nbsp; Consequently, operating profit as a percentage of sales increased to
8% for the six months ended December 31, 2007 compared to 1% for the six months
ended December 31, 2006. &nbsp;&nbsp;Operating profit and margin were as follows:
</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=547
 style='width:410.2pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=234 valign=top style='width:175.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
  text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'><b>
			<font size="2">&nbsp;</font></b></p></td>
			<td width=11 valign=top style='width:7.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=110 valign=top style='width:82.65pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=11 valign=top style='width:7.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=95 valign=top style='width:71.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=86 valign=top style='width:64.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=234 valign=bottom style='width:175.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=227 colspan=4 valign=bottom style='width:170.05pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=86 valign=bottom style='width:64.6pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=234 valign=bottom style='width:175.55pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=86 valign=bottom style='width:64.6pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Increase</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=234 valign=bottom style='width:175.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Operating&nbsp;Profit</font></p></td>
			<td width=11 valign=bottom style='width:7.9pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=110 valign=bottom style='width:82.65pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,021,000&nbsp;</font></p></td>
			<td width=11 valign=bottom style='width:7.9pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=95 valign=bottom style='width:71.6pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">130,000&nbsp;</font></p></td>
			<td width=86 valign=bottom style='width:64.6pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">685%&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=234 valign=bottom style='width:175.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Operating&nbsp;Profit&nbsp;Percentage&nbsp;of&nbsp;Sales</font></p>
			</td>
			<td width=121 colspan=2 valign=bottom style='width:90.55pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">8%&nbsp;</font></p></td>
			<td width=106 colspan=2 valign=bottom style='width:79.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1%&nbsp;</font></p></td>
			<td width=86 valign=bottom style='width:64.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in;
text-autospace:none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Royalties and Other Income. </b>&nbsp;We received $20,000 in royalty
payments in the six months ended December 31, 2007, compared to $25,000 in
royalty payments in the six months ended December 31, 2006.&nbsp; We recognized an additional
$48,000 in income in the six months ended December 31, 2007 for gains
associated with early and discounted payment of debt related to the
Intravantage deferred payables.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Net Interest Income/Expense. </b>&nbsp;Net interest expense for the six
months ending December 31, 2007 was $82,000 compared to net interest expense of
$112,000 in the six months ended December 31, 2006, due to higher cash balances
maintained through the quarter and the early payment of the Intravantage
deferred payables.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-19-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Income Tax (Benefit) Provision</b>. Our estimated effective combined
federal and state tax rate on income from operations for the six months ended
December 31, 2007 resulted in a provision 37% of earnings before tax compared
to a 140% benefit of earnings before tax for the six months ended December 31, 2006.&nbsp;
The difference in the 2006 rate is due to the use of state tax credits coupled
with a retroactive reinstatement of the federal research and development credit
of $64,000.&nbsp; The reinstatement was for expenses incurred after December 31,
2005.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>Net Income.</b>&nbsp; Our net income for the six months ended December 31, 2007
was $631,000 or $0.06 per share on a basic and diluted basis, as compared to a
net income of $103,000 or $0.01 per share on a basic and diluted basis for the
six months ended December 31, 2006.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-20-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>Liquidity and Capital
Resources</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>The following table presents selected financial information as of the end
of the second quarters of fiscal 2008 and 2007 as well as of the year ended
June 30, 2007:</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=689
 style='width:516.95pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=319 valign=top style='width:239.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
  none'>&nbsp;</p></td>
			<td width=10 valign=top style='width:7.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=130 valign=top style='width:1.35in;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=10 valign=top style='width:7.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=104 valign=top style='width:78.25pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=10 valign=top style='width:7.75pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=106 valign=top style='width:79.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=255 colspan=4 valign=bottom style='width:190.95pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">As&nbsp;of&nbsp;December&nbsp;31,</font></p></td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">As&nbsp;of</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=140 colspan=2 valign=bottom style='width:104.95pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=115 colspan=2 valign=bottom style='width:86.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">June&nbsp;30,&nbsp;2007</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Cash&nbsp;and&nbsp;cash&nbsp;equivalents</font></p>
			</td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=130 valign=bottom style='width:1.35in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">220,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">366,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=106 valign=bottom style='width:79.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">403,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Working&nbsp;Capital&#185;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=130 valign=bottom style='width:1.35in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,471,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,043,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=106 valign=bottom style='width:79.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">6,648,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Credit&nbsp;Line&nbsp;outstanding&nbsp;balance</font></p>
			</td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=130 valign=bottom style='width:1.35in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,200,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=106 valign=bottom style='width:79.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">300,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Tangible&nbsp;book&nbsp;value/common&nbsp;share&#178;</font></p>
			</td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=130 valign=bottom style='width:1.35in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.95&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.83&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=106 valign=bottom style='width:79.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">0.88&nbsp;</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Number&nbsp;of&nbsp;days&nbsp;of&nbsp;sales&nbsp;outstanding&nbsp;(DSO)&nbsp;in</font></p>
			</td>
			<td width=140 colspan=2 valign=bottom style='width:104.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=115 colspan=2 valign=bottom style='width:86.0pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">accounts&nbsp;receivable&nbsp;at&nbsp;end&nbsp;of&nbsp;quarter&#179;</font></p>
			</td>
			<td width=140 colspan=2 valign=bottom style='width:104.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">45&nbsp;</font></p></td>
			<td width=115 colspan=2 valign=bottom style='width:86.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">66&nbsp;</font></p></td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">61&nbsp;</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:none;border-left:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=140 colspan=2 valign=bottom style='width:104.95pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=115 colspan=2 valign=bottom style='width:86.0pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=255 colspan=4 valign=bottom style='width:190.95pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Six&nbsp;Months&nbsp;Ended&nbsp;December&nbsp;30,</font></p>
			</td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border:none;
  border-right:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Year&nbsp;Ending</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=140 colspan=2 valign=bottom style='width:104.95pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=115 colspan=2 valign=bottom style='width:86.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
			<td width=116 colspan=2 valign=bottom style='width:86.9pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">June&nbsp;30,&nbsp;2007</font></p></td>
		</tr>
		<tr style='height:13.5pt'>
			<td width=319 valign=bottom style='width:239.1pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Net&nbsp;cash&nbsp;provided&nbsp;by&nbsp;operations</font></p>
			</td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=130 valign=bottom style='width:1.35in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,266,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=104 valign=bottom style='width:78.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">204,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.75pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=106 valign=bottom style='width:79.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:13.5pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,480,000&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><sup>&nbsp;</sup></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-autospace:
none; margin-right:0in; margin-top:0in'><sup><font size="2">1</font></sup><font size="2"> Working Capital = Ending Current Assets less Ending Current
Liabilities.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-autospace:
none; margin-right:0in; margin-top:0in'><sup><font size="2">2</font></sup><font size="2"> Tangible book value/common share<sup>
</sup>= (Total
shareholders&#146; equity &#150; Net intangible asset (patents) - Goodwill) / (basic
outstanding shares).</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-autospace:
none; margin-right:0in; margin-top:0in'><sup><font size="2">3</font></sup><font size="2"> DSO = Ending Net Accounts Receivable balance / (Previous
Quarter Sales / 91).</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>Our working capital at December 31, 2007 increased to $6.5 million
compared to $6.0 million at December 31, 2006 and was approximately the same as
the $6.6 million at June 30, 2007.&nbsp;&nbsp; Cash flow provided by operations was $1,266,000
in the six months ended December 31, 2007 compared to $205,000 for the six
months ended December 31, 2006.&nbsp; Fiscal year 2008 cash was provided through
continued profitability and improvements in accounts receivable levels and higher
levels of accounts payable.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>On November 1,
2007, our existing credit facility with Wells Fargo was replaced with an
expanded facility with a total borrowing capacity of $6,562,500.&nbsp; The credit
line increases our borrowing availability from $2,000,000 to $4,000,000.&nbsp; Its
terms require monthly interest payments at the prime rate of interest (7.25% at
December 31, 2007); or LIBOR (4.6% at December 31, 2007) plus 1.75%, at our
discretion, based on outstanding borrowings.&nbsp; The credit facility expires on
November 1, 2009.&nbsp; An additional term commitment is available for borrowings
through November 1, 2008 for amounts up to $2,000,000.&nbsp; We can take advances
against this commitment through November 1, 2008, at which time the outstanding
borrowings against this commitment will be converted to a term loan, to be
amortized and repaid over 60 months. Its terms require monthly interest
payments at the prime rate of interest; or LIBOR plus 2.0%, at our discretion,
based on outstanding borrowings.&nbsp; It is anticipated that the borrowings from
the term commitment will be used for construction financing of tenant
improvements for our new Irvine facility.&nbsp; The term loan that was entered into
in January 2006 to finance the Astromec purchase remains in place.&nbsp; As of
December 31, 2007, there was a principal balance of $520,833 to be fully paid-off
in January 2010, following the contracted amortization schedule.&nbsp; Its terms
require monthly interest payments at the prime rate of interest; or LIBOR plus
2.0%, at our discretion, based on outstanding borrowings, with no minimum
interest charge.&nbsp;&nbsp;&nbsp; All assets of the Company except our Carson City land and
building secure the outstanding borrowings from Wells Fargo. There was no
outstanding balance under the terms of the credit line or term commitment
facility as of December 31, 2007.&nbsp; The total eligible additional borrowing
capacity at December 31, 2007 was $6,000,000. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-21-</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">&nbsp;</p>
<hr color="#000080"><br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>At December 31,
2007, we had cash and cash equivalents of $220,000.&nbsp; We believe that our
cash and cash equivalents on hand, together with cash flows from operations, if
any, and amounts available under the credit facilities will be sufficient to
meet our working capital and capital expenditure requirements for the next
year.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>In September
2002, our Board of Directors authorized the repurchase on the open market of up
to 500,000 shares of our outstanding Common Stock at a share price no greater
than $1.25, subject to compliance with applicable laws and regulations.&nbsp; There
is no requirement that we repurchase all or any portion of such shares.&nbsp; The
maximum total value of the repurchase is not to exceed $500,000.&nbsp; This
repurchase is to be financed with cash generated by operations.&nbsp; From the
inception of the repurchase authorization through the fiscal year-end date of
June 30, 2003, we repurchased 75,700 shares of Common Stock for $43,741, at an
average price of $0.58 per share.&nbsp; Although the authority to continue the
repurchase shares continues, no additional shares were repurchased in fiscal
years 2004 through 2007 or to date during fiscal year 2008.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;line-height:200%;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;line-height:normal'>
<b>RECENT
ACCOUNTING PRONOUNCEMENTS</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>In July&nbsp;2006, the FASB issued FASB Interpretation No.&nbsp;48,
&#147;Accounting for Uncertainty in Income Taxes,&#148; (&#147;FIN 48&#148;), an interpretation of
FASB Statement No.&nbsp;109, &#147;Accounting for Income Taxes,&#148; (&#147;FASB 109&#148;). &nbsp;FIN
48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise&#146;s financial statements in accordance with FASB 109. &nbsp;This
Interpretation prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. &nbsp;FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure, and transition. FIN 48 is effective for fiscal years
beginning after December&nbsp;15, 2006. The cumulative effect of applying FIN
48 is to be reported as an adjustment to the opening balance of retained
earning in the year of adoption.&nbsp; As a result of the implementation of FIN 48,
the Company recorded a decrease of $75,000 to retained earnings, an increase of
$47,000 to net deferred income tax assets and an increase of $122,000 to income
taxes payable as of July 1, 2007.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>MAJOR CUSTOMERS</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>We had two major customers (defined as a customer that represents greater
than 10% of the Company&#146;s total revenues) in the six months ended December 31,
2007 and 2006.&nbsp;&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<div align="center">
	<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=514
 style='width:385.35pt;border-collapse:collapse'>
		<tr style='page-break-inside:avoid;height:.05pt'>
			<td width=95 valign=top style='width:71.55pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>
			<b><font size="2">&nbsp;</font></b></p></td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=10 valign=top style='width:7.85pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=top style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.1pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=17 valign=top style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=83 valign=top style='width:62.15pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:.05pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.1pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=216 colspan=5 valign=bottom style='width:161.95pt;border:none;
  border-top:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:
  12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
			<font size="2">Six&nbsp;months&nbsp;ended&nbsp;December&nbsp;31,</font></p>
			</td>
			<td width=100 colspan=2 valign=bottom style='width:74.75pt;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.3pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.1pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=216 colspan=5 valign=bottom style='width:161.95pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:12.3pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">(unaudited)</font></p></td>
			<td width=100 colspan=2 valign=bottom style='width:74.75pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.3pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
		</tr>
		<tr style='height:12.25pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=206 colspan=4 valign=bottom style='width:154.15pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2007</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=202 colspan=4 valign=bottom style='width:151.8pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:12.25pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2006</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=95 valign=bottom style='width:71.55pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.1pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Revenues</font></p></td>
			<td width=103 colspan=2 valign=bottom style='width:77.05pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Accts.&nbsp;Rec.</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=103 colspan=2 valign=bottom style='width:77.05pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Revenues</font></p></td>
			<td width=100 colspan=2 valign=bottom style='width:74.75pt;border:solid windowtext 1.0pt;
  border-left:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Accts.&nbsp;Rec.</font></p></td>
		</tr>
		<tr style='height:15.15pt'>
			<td width=95 valign=bottom style='width:71.55pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Customer&nbsp;1</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,569,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.9pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">520,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.1pt;border:none;border-top:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">1,776,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;
  height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;border-right:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.15pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">902,000&nbsp;</font></p></td>
		</tr>
		<tr style='height:15.2pt'>
			<td width=95 valign=bottom style='width:71.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">Customer&nbsp;2</font></p></td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">3,083,000&nbsp;</font></p></td>
			<td width=20 valign=bottom style='width:14.9pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">701,000&nbsp;</font></p></td>
			<td width=10 valign=bottom style='width:7.85pt;border:none;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
			</td>
			<td width=20 valign=bottom style='width:14.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.1pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">2,033,000&nbsp;</font></p></td>
			<td width=17 valign=bottom style='width:12.6pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">$</font></p></td>
			<td width=83 valign=bottom style='width:62.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:1.1pt 1.1pt 1.1pt 1.1pt;height:15.2pt'>
			<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
			<font size="2">388,000&nbsp;</font></p></td>
		</tr>
	</table></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:none'>
<b>Item 3.
Controls and Procedures</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp; The Chief Executive Officer and Chief Financial
Officer (the principal executive officer and principal financial officer,
respectively) conducted an evaluation of the design and operation of our
&#147;disclosure controls and procedures&#148; (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended (&#147;Exchange
Act&#148;)).&nbsp; Based on that evaluation for the quarter ended December 31, 2007, the
Chief Executive Officer and Chief Financial Officer concluded that the
disclosure controls and procedures are effective to ensure that information
required to be disclosed by use in the reports filed or submitted by us under
the Exchange Act is accumulated, recorded, processed, summarized and reported
to management, including our Chief Executive Officer and Chief Financial
Officer, as appropriate, and to allow timely decisions regarding whether or not
disclosure is required.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-22-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>During the
quarter ended December 31, 2007, there were no changes in our internal controls
over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the
Exchange Act) that have materially affected, or are reasonably likely to
materially affect, our internal controls over financial reporting.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:center;margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">-23-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>&nbsp;<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>
<b>PART II</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b>OTHER
INFORMATION</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><font style="font-size: 10.0pt">Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings
</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-autospace:
none'><font style="font-size: 10.0pt">The Company may be a party to various
legal proceedings incidental to its business, none of which are considered by
the Company to be material at this time.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Item 2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unregistered Sales of
Equity Securities and Use of Proceeds. </b>&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-indent:.5in'>
<font style="font-size: 10.0pt">None.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Item 3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defaults Upon Senior
Securities. </b>&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-indent:.5in'>
<font style="font-size: 10.0pt">None.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Item 4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Submissions of Matters
to a Vote of Securities Holders. </b>&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;margin-right:0in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font style="font-size: 10.0pt">On December
4, 2007, the Company held its 2007 Annual Shareholders Meeting. &nbsp;At the Meeting,
the Company's shareholders (i) Amended the Company&#146;s Articles of Incorporation
to remove the Class 1, Class II and Class III Board member designations; (ii)
elected George Isaac, Michael Mesenbrink and William Healey as directors; and
(iii) ratified the appointment of Moss Adams, LLP as the Company's independent
auditors for the fiscal year ending June 30, 2008.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;margin-right:0in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in'>
<font style="font-size: 10.0pt">The proposal to approve the amendment the Company&#146;s
Articles of Incorporation received the following votes: For 7,107,013; Against 211,664;
and Abstain 11,999.&nbsp; Mr. Isaac received the following votes: For 7,083,998; and
Withhold 246,679. &nbsp;Mr. Mesenbrink received the following votes: For 5,868,149;
and Withhold 1,462,528 &nbsp;&nbsp;Mr. Healey received the following votes: For
7,088,110; and Withhold 242,567.&nbsp; The proposal to ratify the appointment of
Moss Adams, LLP received the following votes: For 7,299,507; Against 17,752;
and Abstain/Broker Non-Votes 13,417.&nbsp; &nbsp;&nbsp;&nbsp; </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><font style="font-size: 10.0pt">Item 5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Information.
</font></b><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-indent:.5in'>
<font style="font-size: 10.0pt">None.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify'>
<b><font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.
</font></b><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-indent:.5in'>
<u><font style="font-size: 10.0pt">Exhibits</font></u><font style="font-size: 10.0pt">:</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:.5in'>
<font style="font-size: 10.0pt">10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1994 Second amended Stock Option Plan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:.5in'>
<font style="font-size: 10.0pt">10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second amended and restated 2004&nbsp; Stock
Option Plan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:.5in'>
<font style="font-size: 10.0pt">10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second amended and restated Directors&#146;
Stock Option Plan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:.5in'>
<font style="font-size: 10.0pt">10.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004 amended and restated Directors&#146;
Stock Option Plan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-indent:.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:2.0in;text-indent:-.5in'>
<font style="font-size: 10.0pt">31.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certifications of Chief Executive Officer
Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended,
as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-indent:.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:2.0in;text-indent:-.5in'>
<font style="font-size: 10.0pt">31.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifications of Chief Financial
Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as
amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:2.0in;text-indent:-.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:2.0in;text-indent:-.5in'>
<font style="font-size: 10.0pt">32&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of the Chief Executive
Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">-24-</font></p><hr color="#000080">
<br clear=all
style='page-break-before:always'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">SIGNATURES </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-indent:.5in'>
<font style="font-size: 10.0pt">In
accordance with the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-indent:.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='width:764px;border-collapse:collapse'>
	<tr>
		<td valign=top style='width:320px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">Date:&nbsp; February 14, 2008</font></p>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">&nbsp;</font></p>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">PRO-DEX INC. </font></p></td>
		<td valign=top style='width:444px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">Date:&nbsp; February 14, 2008</font></p>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">&nbsp;</font></p>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">PRO-DEX INC. </font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:320px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">By: / s / Mark Murphy </font></p></td>
		<td valign=top style='width:444px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">By: / s / Jeffrey J.
  Ritchey </font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:320px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">&nbsp;</font></p></td>
		<td valign=top style='width:444px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:320px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">Mark Murphy</font></p></td>
		<td valign=top style='width:444px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">Jeffrey J. Ritchey </font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:320px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">Chief Executive Officer</font></p></td>
		<td valign=top style='width:444px;padding:0in; '>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">Secretary and Chief
  Financial Officer</font></p>
		<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
		<font style="font-size: 10.0pt">(Principal Financial and
  Accounting Officer)</font></p></td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>&nbsp;<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>
<b><font style="font-size: 16.0pt">End of Filing</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none'>&nbsp;</p>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10-1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With EDGARSTAR Software-->
<!-- Copyright 2007 EDGARSTAR TRADEMARK-->
<!-- All rights reserved EDGAR2.com -->



<title>Exhibit 10.1</title>


</head>

<body lang=EN-US>

<div style='page:Section1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>PRO-DEX, INC.</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>1994 SECOND AMENDED STOCK OPTION
PLAN</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This
Second Amended Stock Option Plan (the &#147;Plan&#148;), adopted in consideration for
services rendered and to be rendered to Pro-Dex, Inc. and related companies, is
amended this 4th day of December, 2007.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.25in'>1.&nbsp;&nbsp; <u>Definitions</u>.&nbsp; The terms used in this Plan shall, unless otherwise
indicated or required by the particular
context, have the following meanings:</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Board</u>:&nbsp; &nbsp;&nbsp;
The Board of Directors of Pro-Dex, Inc.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Code</u>:&nbsp;&nbsp; &nbsp;&nbsp;
The Internal Revenue Code of 1986, as amended.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Common Stock</u>:&nbsp;&nbsp;&nbsp;
The no par value common stock of Pro-Dex, Inc.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Company</u>:&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro-Dex, Inc., a corporation incorporated under the laws of</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>California, and any successors in
interest by merger, operation of law, assignment or purchase of all or
substantially all of the property, assets or business of the Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Date
of Grant</u>:&nbsp;&nbsp;&nbsp; The date on which an Option (see below) is granted under the
Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Disinterested
Person</u>:&nbsp; A director who has not been granted or awarded equity securities
pursuant to any plan of the Company or of any Related Company of the Company
during one year prior to that director&#146;s service as an administrator of the
Plan, except as otherwise provided in Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;) with respect
to (a) participation in formula plans or ongoing securities acquisitions plans,
and (b) an election to receive securities for an annual retainer fee.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Employee</u>:&nbsp;&nbsp;&nbsp;
An Employee is an employee of the Company or any Related Company.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Fair
Market Value</u>:&nbsp;&nbsp; The Fair Market Value of the Option Shares.&nbsp; Such Fair
Market Value as of any date shall be determined by the Option Committee as of
the last business day for which the prices or quotes discussed in this sentence
are available prior to the date an Option is granted and shall mean (a) the
average (on that date) of the high and low prices of the Common Stock on the
principal national securities exchange by which the Common Stock is traded, if
the stock is then traded on a national securities exchange; or, (b) the last
reported sale price (on that date) of the Common Stock on NASDAQ or other
securities market, if the stock is not then traded on a national securities
exchange; or (c) the closing bid price (or average of bid prices) last quoted
(on that date) by an established securities market or quotation service for
over-the-counter securities, if the last sale price is not reported for the
stock on the service or market on which the stock is quoted.&nbsp; However, if the
Common Stock is not publicly-traded at the time an Option is granted under the
Plan, Fair Market Value shall be deemed to be the fair value of the stock as
determined in good faith by the Board or the Option Committee, and a written
record of the method of determining such value shall be maintained.&nbsp; Such
valuation shall take into account all available information material to the
value of the company, including but not limited to the value of the tangible
and intangible assets of the company, the present value of its anticipated
future cash flows, the market value of the stock or equity interests in other
entities engaged in substantially the same business, recent arm&#146;s length
transactions involving the sale of such stock, and other relevant factors.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
1</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Incentive
Stock Options</u> (&#147;ISOs&#148;):&nbsp; &#147;Incentive Stock Options&#148; as that term is defined
in Section 422A of the Code.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Key
Employee</u>:&nbsp;&nbsp;&nbsp;&nbsp; A person designated by the Option Committee who either is
employed by the Company or a Related Company (see below) and upon whose
judgment, initiative and efforts the Company or a Related Company is largely
dependent for the successful conduct of its business; provided, however, that
Key Employees shall not include those members of the Board who are not
employees of the Company or a Related Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Non-Incentive
Stock Options (&#147;Non-ISOs&#148;</u>):&nbsp;&nbsp;&nbsp;&nbsp; Options which are not intended to qualify
as &#147;Incentive Stock Options&#148; under Section 422A of the Code.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Option</u>:&nbsp;&nbsp;&nbsp;&nbsp;
The rights granted to an Employee to purchase Common Stock pursuant to the
terms and conditions of an Option Agreement (see below).</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Option
Agreement</u>:&nbsp;&nbsp;&nbsp;&nbsp; The written agreement (and any amendment or supplement
thereto) between the Company and an Employee designating the terms and
conditions of an Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Option
Committee</u>:&nbsp;&nbsp;&nbsp;&nbsp; With respect to grants of Options to Employees who are not
also Officers and/or Directors of the Company, the Plan shall be administered
by an Option Committee (&#147;Option Committee&#148;) composed of the Board or at least
two members of the Board.&nbsp; With respect to grants of Options to Employees who
are also Officers or Directors, the Plan shall be administered by a committee,
selected by the Board, consisting of two or more persons, each of whom is a
Disinterested Person.&nbsp; Such committee may also be deemed an Option Committee.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Option
Shares</u>:&nbsp;&nbsp;&nbsp;&nbsp; The shares of Common Stock underlying an Option granted to an
Employee.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Optionee</u>:&nbsp;&nbsp;&nbsp;&nbsp;
An Employee who has been granted an Option.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
2</p>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Related
Company</u>:&nbsp;&nbsp;&nbsp;&nbsp; Any corporation that is a &#147;parent corporation&#148; or a
&#147;subsidiary corporation&#148; with respect to the Company, as those terms are
defined in Section 425 of the Code.&nbsp; The determination of whether a corporation
is a Related Company shall be made without regard to whether the corporation or
the relationship between the corporation and the Company now exists or comes
into existence hereinafter.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.25in'>2.&nbsp;&nbsp;&nbsp; <u>Purpose and Scope</u>.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>(a)&nbsp;&nbsp;&nbsp; The
purpose of this Plan is to advance the interests of the Company and
its shareholders by affording Employees an opportunity for investment in the
Company and the incentive advantages inherent in stock ownership in this
Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;margin-right:0in; margin-top:0in; text-indent:0.25in'>(b)&nbsp;&nbsp; &nbsp;This
Plan authorizes the Option Committee to grant Options to purchase shares
of Common Stock to Employees selected by the Option Committee while considering
criteria such as employment position or other relationship with the Company,
duties and responsibilities, ability, productivity, length of service or
association, morale, interest in the Company, recommendations by supervisors,
and other matters.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Administration of the Plan</u>.&nbsp; The Plan shall be administered by
the OptionCommittee.&nbsp; The Option Committee
shall have the authority granted to it under this section and under each other
section of the Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1.5in; margin-right:0in; margin-top:0in'>In accordance
with and subject to the provisions of the Plan, the OptionCommittee shall select the
Optionees, shall determine (a) the number of shares of Common Stock to be
subject to each Option, which number shall be fixed as of the date of grant,
(b) the time at which each Option is to be granted, (c) whether an Option shall
be granted in exchange for the cancellation and termination of a previously
granted option or options under the Plan or otherwise, (d) the purchase price
for the Option Shares, which price shall not be less than 100% of the per share
Fair Market Value of the shares on the date of grant, (e) the option period,
and (f) the manner in which the Option becomes exercisable.&nbsp; In addition, the
Option Committee shall fix such other terms of each Option as the Option
Committee may deem necessary or desirable.&nbsp; The Option Committee shall
determine the form of Option Agreement to evidence each Option.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify; text-indent:1.5in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1.5in; margin-right:0in; margin-top:0in'>The Option
Committee from time to time may adopt such rules and regulations for carrying out the
purposes of the Plan as it may deem proper and in the best interests of the
Company. &nbsp;The Option Committee shall keep minutes of its meetings and those
minutes shall be distributed to every member of the Board.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1.5in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1.5in; margin-right:0in; margin-top:0in'>The Board may
from time to time make such changes in and additions to the Plan as it may deem
proper and in the best interest of the Company; provided, however, that no such
change or addition shall impair any Option previously granted under the Plan,
and that the approval by the affirmative vote of the holders of a majority of
the Company's securities entitled to vote and represented at a meeting duly held
in accordance with the applicable laws of the State of California, shall be
required for any amendment which would:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
3</p>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; modify
the eligibility requirements for receiving Options under the Plan;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.25in'>(b)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;increase
the benefits accruing to Employees under the Plan; or</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.25in'>(c)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;increase
the number of shares of Common Stock that may be issued under the
Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.5in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-right:0in; margin-top:0in; text-indent:1.5in'>All actions
taken and all interpretations and determinations made by the Option Committee in good
faith (including determinations of Fair Market Value) shall be final and
binding upon all Employees, the Company and all other interested persons.&nbsp; No
member of the Option Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan,
and all members of the Option Committee shall, in addition to rights they may
have as Directors of the Company be fully protected by the Company with respect
to any such action, determination or interpretation.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Number of Shares</u>.&nbsp; The Board is authorized to appropriate, issue
and sell for the purposes of the Plan, and
the Option Committee is authorized to grant Options with respect to, a total
number, not in excess of 1,500,000 shares of Common Stock, either treasury or
authorized but unissued, or the number and kind of shares of stock or other
securities which in accordance with Section 9 shall be substituted for the
1,500,000 shares or into which such 1,500,000 shares shall be adjusted.&nbsp; All or
any unsold shares subject to an Option that for any reason expires or otherwise
terminates, may again be made subject to Options under the Plan.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-right:0in; margin-top:0in; text-indent:1in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Eligibility</u>.&nbsp; Options which are intended to qualify as ISOs will
be granted only to Key Employees.&nbsp; Key
Employees and other Employees may hold more than one Option under the Plan and
may hold Options under the Plan and options granted pursuant to other plans or
otherwise.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-right:0in; margin-top:0in; text-indent:1in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Option Price</u>.&nbsp; The Option Committee shall determine the purchase
price for the Options Shares, provided
that the purchase price to be paid by Optionees for the Option Shares shall not
be less than 100 percent of the Fair Market Value of the Option Shares at the
time the Option is granted.&nbsp; The purchase price for the Option Shares shall be
a fixed, and cannot be a fluctuating, price.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Duration and Exercise of Options</u>.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each
Option granted under the Plan shall be exercisable on such date or dates
and during such period and for such number of shares as shall be determined
pursuant to the provisions of the instrument evidencing such Option.&nbsp; The
Option Committee shall have the right to accelerate the date of exercise of any
Option, provided that the Option Committee shall not accelerate the exercise of
any ISO granted if such acceleration would violate the annual vesting
limitation contained in Section 422(d) (1) of the Code.&nbsp; The Option Committee
shall not amend or extend any Award in such a way as
might, under the Regulations promulgated under Section 409A of the Code,
provide for the additional deferral of compensation or an effective decrease in
the exercise price of the Award to a price below what was the Fair Market Value
of the Common Stock on the date of grant.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">4</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(b)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise permitted under Section 11, during the lifetime of
the Optionee, the Option shall be exercisable only by the Optionee; provided,
that in the event of the legal disability of an Optionee, the guardian or
personal representative of the Optionee may exercise the Option.&nbsp; However, if
the Option is an ISO it may be exercised by the guardian or personal
representative of the Optionee only if such guardian or personal representative
obtains a ruling from the Internal Revenue Service or an opinion of counsel to
the effect that neither the grant nor the exercise of such power is violative
of Section 422A(b) (5) of the Code.&nbsp; Any opinion of counsel must be both from
counsel arid in a form acceptable to the Option Committee.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(c)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;The
Option Committee may determine whether any Option shall be exercisable
as provided in Paragraph (a) of this Section 7 or whether the Options shall be
exercisable in installments only; if the Option Committee determines the
latter, it shall determine the number of installments and the percentage of the
Option exercisable at each installment date.&nbsp; All such installments shall be
cumulative.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(d)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;If
the Optionee ceases to be employed by either the Company or a Related
Company because of the death or permanent and total disability (as defined in
Section 22(e) (3) of the Code) of the Optionee, any Option held by the Optionee
at the time his employment ceases may be exercised within 90 days after the
date his employment ceased, but only to the extent that the Option was
exercisable according to its terms on the date the Optionee&#146;s employment
ceased.&nbsp; After such 90-day period, any unexercised portion of an Option shall
expire.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(e)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the provisions of Paragraph (d) of this Section 7,if an Optionee&#146;s employment by the Company or a Related Company ceases for any reason
other than the Optionee&#146;s death or permanent and total disability, any
unexercised portion of any Option held by the Optionee at the time his
employment ceases may be exercised within 30 days after the date his employment
ceased, but only to the extent that the Option was exercisable according to its
terms on the date the Optionee&#146;s employment ceased.&nbsp; After such date, any
unexercised portion of an Option shall expire.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(f)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Each
Option shall be exercised in whole or part by delivering to the office of
the Treasurer of the Company written notice of the number of shares with
respect to which the Option is to be exercised and by paying in full the
purchase price for the Option Shares purchased as set forth in Section 8;
provided, that an Option may not be exercised in part unless the purchase price
for the Option Shares purchased is at least $2,000.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
- -.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
- -.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
5</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(g)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;To
the extent required to qualify for the exemption provided by Rule 16b-3
under the Exchange Act, and any successor provision, at least six months must
elapse from the date of acquisition of an Option by any person who is subject
to the reporting requirements of Section 16(a) of the Exchange Act to the date
of exercise of such Option or disposition of the Option Shares.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Payment for Option Shares</u>.&nbsp; If the purchase price of the Option
Sharespurchased by any Optionee at one
time exceeds $2,000, the Option Committee may permit all or part of the
purchase price for the Option Shares to be paid by the Optionee by (a)
delivering to the Company shares of the Company&#146;s common Stock previously owned
by the Optionee with a Fair Market Value as of the date of payment equal to the
portion of the purchase price for the Option Shares that the Optionee does not
pay in cash, (b) having shares withheld from the amount of shares to be
received by the Optionee, (c) delivering an irrevocable subscription agreement
obligating the Optionee to take and pay for the shares to be purchased within
one year of the date of such exercise, or (d) complying with any other payment
mechanisms as the Option Committee may approve from time to time.&nbsp; As a
condition to the exercise of any Option granted under this Plan, the Optionee
shall make such arrangements as the Option Committee may require for the
satisfaction of any federal, state or withholding tax obligations which may
arise in connection with such exercise.&nbsp; The issuance, transfer or delivery of
certificates of shares of Common Stock pursuant to the exercise or Options may
be delayed, at the discretion of the Option Committee, until the Option
Committee is satisfied that the applicable requirements of federal and state
securities laws and the withholding provisions of the Code have been met.&nbsp;
Until such person has been issued a certificate or certificates for the Option
Shares so purchased, he or she shall possess no rights of a recordholder with
respect to any of such shares.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Change in Stock, Adjustments, Inc</u>.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the
event that each of the outstanding shares of Common Stock (other than
shares held by dissenting shareholders which are not changed or exchanged)
should be changed into, or exchanged for, a different number or kind of shares
of stock or other securities of the Company, or, if further changes or
exchanges of any stock or other securities into which the Common Stock shall
have been changed, or for which it shall have been exchanged, shall be made
(whether by reason of merger, consolidation reorganization, recapitalization,
stock dividends, reclassification, split-up, combination or shares or
otherwise), then there shall be substituted for each share of Common Stock that
is subject to the Plan but not subject to an outstanding Option thereunder, the
number and kind of shares of stock or other securities into which each
outstanding share of Common Stock (other than shares held by dissenting
shareholders which are not changed or exchanged) shall be so changed or for
which each outstanding share of Common Stock (other than shares held by
dissenting shareholders) shall be exchanged.&nbsp; Any securities so substituted
shall be subject to similar successive adjustments.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
6</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; margin-right:0in; margin-top:0in'>In the event
of any such changes or exchanges, the Option Committee shall determine whether,
in order to prevent dilution or enlargement of rights, an adjustment should be
made in the number, or kind, or Option price of the shares or other securities
then subject to an Option or Options granted pursuant to the Plan and the
Option Committee shall make any such adjustment, and such adjustments shall be
made and shall be effective and binding for all purposes of the Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.5in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(b)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;The
Company completed a Plan of Reorganization and Merger(&#147;Reorganization&#148;)
whereby P-D Acquiring Corp., a California corporation, merged with and into the
Company in exchange for shares of Pro-Dex Holdings, Inc., a Colorado
corporation.&nbsp; Post Reorganization, the Plan is the Plan of Pro-Dex, Inc.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>10.&nbsp; <u>Relationship
to Employment</u>.&nbsp; Nothing contained in the Plan, or in any Option granted pursuant to the
Plan, shall confer upon any Optionee any right with respect to continuance of
employment by the Company, or interfere in any way with the right of the Company
to terminate the Optionee&#146;s employment at any time.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify; text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>11.&nbsp; <u>Nontransferability
of Option</u>.&nbsp; No Option granted under the Plan shall betransferable by the Optionee,
either voluntarily or involuntarily, except by will or the laws of descent and
distribution, pursuant to a qualified domestic relations order as defined in
the Code, or pursuant to the Employee Retirement Income Security Act or rules
promulgated thereunder; except that (a) Optionees who are not subject to
Section 16(b) of the Exchange Act may upon written notice transfer an Option
(i) to an Optionee&#146;s spouse, parents, siblings, or lineal descendants, or (ii)
to a trust for the benefit of the Optionee or any of the Optionee&#146;s spouse,
parents, siblings, or lineal descendants, or (iii) to any corporation or
partnership controlled by the Optionee; and (b) Optionees who are subject to
Section 16(b) of the Exchange Act may transfer Options to immediate family
members and family trusts.&nbsp; No Option shall be subject to execution, attachment
or similar process. &nbsp;Except as specifically provided herein, any attempt to
transfer the Option shall void the Option.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>12.&nbsp; <u>Rights
as a Shareholder</u>.&nbsp; No person shall have any rights as a shareholder with respect to any shares
covered by an Option until that person shall become the holder of record of
such shares and, except as provided in Section 9, no adjustments shall be made
for dividends or other distributions or other rights as to which there is an
earlier record date.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
7</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>13.&nbsp; <u>Securities
Laws Requirements</u>.&nbsp; No Option Shares shall be issued unlessand until, in the opinion of the
Company, any applicable registration requirements of the Securities Act of
1933, as amended (&#147;Securities Act&#148;), any applicable listing requirements of any
securities exchange on which stock of the same class is then listed, and any
other requirements of law or of any regulatory bodies having jurisdiction over
such issuance and delivery, have been fully complied with.&nbsp; Each Option and
each Option Share certificate may be imprinted with legends reflecting federal
and state securities laws, restrictions and conditions, and the Company may
comply therewith and issue &#147;stop transfer&#148; instructions to its transfer agent
and registrar in good faith without liability.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>14.&nbsp; <u>Disposition
of Shares</u>.&nbsp; Each Optionee, as a condition of exercise, shall represent, warrant and agree, in
a form of written certificate approved by the Company, as follows:&nbsp; (a) that
all Option Shares are being acquired solely for his own account and not on
behalf of any other person or entity; (b) that no Option Shares will be sold or
otherwise distributed in violation of the Securities Act, or any other
applicable federal or state securities laws; (c) that if he is subject to
reporting requirements under Section 16(a) of the Exchange Act, he will (i) not
violate Section 16(b) of the Exchange Act, (ii) furnish the Company with a copy
of each Form 4 and Form 5 filed by him, and (iii) timely file all reports
required under the federal securities laws; and (d) that he will report all
sales of Option Shares to the Company in writing on a form prescribed by the
Company.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>15.&nbsp; <u>Effective
Date of Plan; Termination Date of Plan</u>.&nbsp; The Plan shall be effective on the date of the
approval of the Plan by the affirmative vote of the holders of a majority of
the Company&#146;s securities entitled to vote and represented at a meeting duly
held in accordance with applicable law.&nbsp; The Plan shall terminate on May 25,
2004, except as to Options previously granted and outstanding under the Plan at
that time.&nbsp; No Options shall be granted after the date on which the Plan
terminates.&nbsp; The Plan may be abandoned or terminated at any earlier time by the
Board, except with respect to any Options then outstanding under the Plan.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>16.&nbsp; <u>Limitation
on Amount of Option</u>.&nbsp; With respect to ISOs, the aggregate Fair Market Value (determined as of
the time the ISO is granted) of the stock as to which an ISO may first become
exercisable in a particular calendar year may not exceed $100,000.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>17.&nbsp; <u>Ten
Percent Shareholder Rule</u>.&nbsp; With respect to ISOs, no Option may be granted to a Key Employee who, at
the time the Option is granted, owns stock possessing more than 10 percent of
the total combined voting power of all classes of stock of the Company or of
any &#147;parent corporation&#148; or &#147;subsidiary corporation&#148; as those terms are defined
in Section 425 of the Code, unless at the time the Option is granted the
purchase price for the Option shares is at least 110 percent of the Fair Market
Value of the Option Shares at the time the ISO is granted and such Option by
its terms is not exercisable after the&nbsp; expiration of five years from the Date
of Grant.&nbsp; For purposes of the preceding sentence, stock ownership shall be
determined as provided in Section 425 of the Code.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; text-indent:1in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>18.&nbsp; <u>Withholding
Taxes</u>.&nbsp; The Company, or any Related Company, may take such steps as it may deem
necessary or appropriate for the withholding of any taxes which the Company, or
any Related Company, is required by any law or regulation or any governmental
authority, whether federal, state or local, domestic or foreign, to withhold in
connection with any Option including, but riot limited to, the withholding of
all or any portion of any payment or the withholding of issuance of Option
Shares to be issued upon the exercise of any Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">8</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:
1in; margin-right:0in; margin-top:0in'>19.&nbsp; <u>Change
in Control, Stock Dividends, Reorganization and Other Extraordinary Actions</u>.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify; margin-right:0in; margin-top:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp; If (i)
the company shall at any time be involved in a transaction described n
Section 424(a) of the Code (or any successor provision) or any &#147;corporate
transaction&#148; described in the regulations thereunder; (ii) the Company shall
declare dividends payable in, or shall subdivide or combine, its Common Stock
or (iii) any other event with substantially the same effect shall occur, the
Option Committee shall, with respect to each outstanding Option, proportionately
adjust the number of Option Shares and/or the exercise price per share so as to
preserve the rights of the Optionee substantially proportionate to the rights
of the Optionee prior to such event, and to the extent that such action shall
include an increase or decrease in the number of Option Shares subject to
outstanding Options, the number of shares available under this Plan shall
automatically be increased or decreased, as this case may be, proportionately,
without further action on the part of the Option Committee, the Company or the
Company&#146;s shareholders.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
3.0pt; margin-right:0in; margin-top:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp; If the Company is liquidated or dissolved, the Option Committee
may allow the holders of any outstanding Options to exercise all or any part of
the unvested portion of the Options held by them; provided, however, that such
Options must be exercised prior to the effective date of such liquidation or
dissolution.&nbsp; If the Option Holders do not exercise their Options prior to such
effective date, each outstanding Option shall terminate as of the effective
date of the liquidation or dissolution.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
3pt; margin-right:0in; margin-top:0in'>(c)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;The
grant of an Option shall not affect in any way the right or power of the Company
to make adjustments, reclassifications, reorganizations or&nbsp; changes of its
capital or business structure, to merge, consolidate or dissolve, to liquidate
or to sell or transfer all or part of its business or assets.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:.5in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
3pt; margin-right:0in; margin-top:0in'>(d)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;In
the event of a Change in Control (as defined below) of the Company, the
Option Committee may, in its discretion, accelerate all outstanding Options so
that they immediately become fully vested and immediately exercisable for the
duration of the Option Term.&nbsp; For purposes of this subsection (d), &#147;Change in
Control&#148; shall mean either one of the following:&nbsp; (i) when any &#147;person,&#148; as
such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than a
shareholder of the Company on the date of this Plan), the Company, a subsidiary
or a Company Employee Benefit Plan, (including any trustee of such Plan acting
as trustee) becomes, after the date of this Plan, the &#147;beneficial owner&#148; (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company&#146;s then outstanding securities; or (ii) the occurrence of a
transaction requiring shareholder approval, arid involving the sale of all or
substantially all of the assets of the Company or the merger of the Company
with or into another corporation.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.25in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
9</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;margin-right:0in; margin-top:0in'>(e)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;If
at any time the Company declares an Extraordinary Dividend, as defined
below, all Options shall accelerate and thereupon become fully vested and
immediately exercisable for the duration of the Option Term.&nbsp; For purposes of
this subsection (e), &#147;Extraordinary Dividend&#148; shall mean a cash dividend
payable to holders of record of the Common Stock in an amount in excess of 10%
of the then Fair Market Value of the Company&#146;s Common Stock.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.25in'>20.&nbsp; <u>Other
Provisions</u>.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;The use of a masculine gender in the Plan shall also include within its
meaning the feminine, and the singular may include the plural, and the plural
may include the singular, unless the context clearly indicates to the contrary.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any expenses of administering the Plan shall be borne by the Company.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Plan shall be construed to be in addition to any and all other compensation
plans or programs.&nbsp; Neither the adoption of the Plan by the Board nor the
submission of the Plan to the shareholders of the Company shall be construed as
creating any limitations on the power of authority of the Board to adopt such
other additional incentive or other compensation arrangements as the Board may
deem necessary or desirable.</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify; text-indent:0.25in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
0.25in; margin-right:0in; margin-top:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The validity, construction, interpretation, administration and effect of the Plan and
its rules and regulations, and the rights of any and all personnel having or
claiming to have an interest therein or thereunder shall be governed by and
determined exclusively and solely in accordance with the laws of the State of
California; provided, however, if the Reorganization described in Section 9(b)
hereof shall be consummated, the laws of the State of Colorado shall govern and
determine construction, etc. of this Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">*********&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">10</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:center'>&nbsp;</p>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>exhibit10-2.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With EDGARSTAR Software-->
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<title>Exhibit 10.2</title>


</head>

<body lang=EN-US>

<div style='page:Section1;'>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>PRO-DEX, INC.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>SECOND AMENDED AND RESTATED</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;margin-top:0in'>2004 STOCK OPTION PLAN</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>This Second Amended and Restated 2004 Stock Option Plan (the &#147;<u>Plan</u>&#148;)
is adopted in consideration for services rendered and to be rendered to
Pro-Dex, Inc. or any Related Company (as defined below).</p>

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1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Definitions</u>. The terms used in this Plan shall, unless otherwise
indicated or required by the particular context, have the following meanings:</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Award Shares</u>: The shares of Common Stock underlying an Option or
Restricted Stock granted to an Employee.</h2>

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(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Board</u>: The Board of Directors of Pro-Dex, Inc.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Code</u>: The Internal Revenue Code of 1986, as amended.</h2>

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(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u>: The no par value common stock of Pro-Dex, Inc.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Company</u>: Pro-Dex, Inc., a corporation incorporated under the laws
of Colorado, and any successors in interest by merger, operation of law,
assignment or purchase of all or substantially all of the property, assets or
business of the Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Date of Grant</u>: The date on which an Option is granted under the
Plan.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Disinterested Person</u>: A director who has not been granted or
awarded equity securities pursuant to any plan of the Company or of any Related
Company of the Company during one year prior to that director&#146;s service as an
administrator of the Plan, except as otherwise provided in Rule 16b-3 promulgated
under the Securities Exchange Act of 1934, as amended (the &#147;<u>Exchange Act</u>&#148;)
with respect to (i) participation in formula plans or ongoing securities
acquisitions plans, and (ii) an election to receive securities for an annual
retainer fee.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Employee</u>: An Employee is an employee of the Company or any
Related Company.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Fair Market Value</u>: The Fair Market Value of the Option Shares.
Such Fair Market Value as of any date shall be determined by the Option
Committee as of the last business day for which the prices or quotes discussed
in this sentence are available prior to the date an Option is granted and shall
mean (i) the average (on that date) of the high and low prices of the Common
Stock on the principal national securities exchange by which the Common Stock
is traded, if the stock is then traded on a national securities exchange; or,
(ii) the last reported sale price (on that date) of the Common Stock on an
established securities market, if the stock is not then traded on a national
securities exchange; or (iii) the closing bid price (or average of bid prices)
last quoted (on that date) by an established securities market or quotation
service for over-the-counter securities, if the last sale price is not reported
for the stock on the service or market on which the stock is quoted.&nbsp; However,
if the Common Stock is not publicly-traded at the time an Option is granted
under the Plan, Fair Market Value shall be deemed to be the fair value of the
stock as determined in good faith by the Board or the Option Committee, provided that such valuation shall take into account all
available information material to the value of the company, including but not
limited to the value of the tangible and intangible assets of the company, the
present value of its anticipated future cash flows, the market value of the
stock or equity interests in other entities engaged in substantially the same
business, recent arm&#146;s length transactions involving the sale of such stock,
and other relevant factors, and a written record of the method of
determining such value shall be maintained.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<u><br clear=all
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</u>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Incentive Stock Options (&#147;ISOs&#148;)</u>: &#147;Incentive Stock Options&#148; as
that term is defined in Section 422 of the Code.</h2>

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(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Key Employee</u>: A person designated by the Option Committee who
either is employed by the Company or a Related Company (see below) and upon
whose judgment, initiative and efforts the Company or a Related Company is
largely dependent for the successful conduct of its business; provided,
however, that Key Employees shall not include those members of the Board who
are not employees of the Company or a Related Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Non-Incentive Stock Options (&#147;Non-ISOs&#148;</u>): Options which are not
intended to qualify as &#147;Incentive Stock Options&#148; under Section 422 of the Code.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option</u>: The rights granted to an Employee to purchase Common
Stock pursuant to the terms and conditions of an Option Agreement.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Agreement</u>: The written agreement (and any amendment or
supplement thereto) between the Company and an Employee designating the terms
and conditions of an Option.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Committee</u>: With respect to grants of Options to Employees
who are not also Officers and/or Directors of the Company, the Plan shall be
administered by an Option Committee (&#147;<u>Option Committee</u>&#148;) composed of the
Board or at least two members of the Board. With respect to grants of Options
to Employees who are also Officers or Directors, the Plan shall be administered
by a committee, selected by the Board, consisting of two or more persons, each
of whom is a Disinterested Person. Such committee may also be deemed an Option
Committee.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Shares</u>: The shares of Common Stock underlying an Option
granted to an Employee.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Optionee</u>: An Employee who has been granted an Option.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Related Company</u>: Any corporation that is a &#147;parent corporation&#148;
or a &#147;subsidiary corporation&#148; with respect to the Company, as those terms are
defined in Section 425 of the Code. The determination of whether a corporation
is a Related Company shall be made without regard to whether the corporation or
the relationship between the corporation and the Company now exists or comes
into existence hereinafter.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-2-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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</div>

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</u>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Restricted Stock</u>: Shares of Common Stock granted pursuant to the
terms of <u>Section 12</u> hereof.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Restricted Stock Agreement</u>: The written agreement (and any
amendment or supplement thereto) between the Company and an Employee
designating the terms and conditions of Restricted Stock.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Stock Award</u>: Any Option or Restricted Stock granted under this
Plan.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Purpose and Scope</u>.</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this Plan is to advance the interests of the Company and
its shareholders by affording Employees an opportunity for investment in the
Company and the incentive advantages inherent in stock ownership in this
Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Plan authorizes the Option Committee to grant Stock Awards to
Employees selected by the Option Committee while considering criteria such as
employment position or other relationship with the Company, duties and
responsibilities, ability, productivity, length of service or association,
morale, interest in the Company, recommendations by supervisors, and other matters.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Administration of the Plan</u>.</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall be administered by the Option Committee. The Option
Committee shall have the authority granted to it under this Section and under
each other Section of the Plan.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with and subject to the provisions of the Plan, the Option
Committee shall select the Employees to receive Stock Awards and shall
determine (i) the number of shares of Common Stock to be subject to each Stock
Award, which number shall be fixed as of the date of grant, (ii) the time at
which each Stock Award is to be granted, (iii) whether a Stock Award shall be
granted in exchange for the cancellation and termination of a previously
granted option or options under the Plan or otherwise, (iv) the purchase price
for the Option Shares, (v) the option period, and (vi) the manner in which the
Option becomes exercisable. In addition, the Option Committee shall fix such
other terms of each Stock Award as the Option Committee may deem necessary or
desirable. The Option Committee shall determine the form of Option Agreement or
Restricted Stock Agreement to evidence each Stock Award.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Option Committee from time to time may adopt such rules and
regulations for carrying out the purposes of the Plan as it may deem proper and
in the best interests of the Company. The Option Committee shall keep minutes
of its meetings and those minutes shall be distributed to every member of the
Board.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board may from time to time make such changes in and additions to
the Plan as it may deem proper and in the best interest of the Company;
provided, however, that no such change or addition shall impair any Stock Award
previously granted under the Plan, and that the approval by the affirmative
vote of the holders of a majority of the Company&#146;s securities entitled to vote
and represented at a meeting duly held in accordance with the applicable laws
of the State of California, shall be required for any amendment which would:</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-3-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<br clear=all
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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</h2>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(i)&nbsp;&nbsp;&nbsp;&nbsp; materially modify the eligibility requirements for receiving Stock
Awards under the Plan;</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;materially increase the benefits accruing to Employees under the Plan;
or</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;increase the number of shares of Common Stock that may be issued under
the Plan.</h3>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All actions taken and all interpretations and determinations made by the
Option Committee in good faith (including determinations of Fair Market Value)
shall be final and binding upon all Employees, the Company and all other
interested persons. No member of the Option Committee shall be personally
liable for any action, determination or interpretation made in good faith with
respect to the Plan, and all members of the Option Committee shall, in addition
to rights they may have as Directors of the Company be fully protected by the
Company with respect to any such action, determination or interpretation.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the further intent of the Plan that it conform in all respects
with the requirements of Rule 16b-3 of the Securities and Exchange Commission
under the Exchange Act (&#147;<u>Rule 16b-3</u>&#148;). To the extent that any aspect of
the Plan or its administration is at any time viewed as inconsistent with the
requirements of Rule 16b-3 or, in connection with ISOs, the Code, that aspect
shall be deemed to be modified, deleted, or otherwise changed as necessary to
ensure continued compliance with the Rule 16b-3 requirements.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Number of Shares</u>. The Board is authorized to appropriate, issue
and sell for the purposes of the Plan, and the Option Committee is authorized
to grant Options with respect to, a total number, not in excess of 2,000,000<b>
</b>shares of Common Stock, either treasury or authorized but unissued, or the
number and kind of shares of stock or other securities which in accordance with
<u>Section 9</u> shall be substituted for the 2,000,000<b> </b>shares or into
which such 2,000,000<b> </b>shares shall be adjusted. Such number of shares
shall include any options granted under any other stock option plan of the
Company that may from time to time become subject to and governed by the terms
and conditions of this Plan. All or any unsold shares subject to a Stock Award
that for any reason expires or otherwise terminates, may again be made subject
to Stock Awards under the Plan.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Eligibility</u>. Options which are intended to qualify as ISOs will
be granted only to Key Employees. Key Employees and other Employees may hold
more than one Option under the Plan and may hold Stock Awards under the Plan
and options or awards granted pursuant to other plans or otherwise.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Price</u>. The Option Committee shall determine the purchase
price for the Options Shares, provided that the purchase price to be paid by
Optionees for the Option Shares shall not be less than 100 percent of the Fair
Market Value of the Option Shares at the time the Option is granted. The
purchase price for the Option Shares shall be a fixed, and cannot be a
fluctuating, price.</h1>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-4-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Duration and Exercise of Options</u>.</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option granted under the Plan shall be exercisable on such date or
dates and during such period and for such number of shares as shall be
determined pursuant to the provisions of the instrument evidencing such Option.
The Option Committee shall have the right to accelerate the date of exercise of
any Option, provided that the Option Committee shall not accelerate the
exercise of any ISO granted if such acceleration would violate the annual
vesting limitation contained in Section 422(d)(1) of the Code.&nbsp; In no event
shall the Option Committee have the discretion to extend an Option beyond the
earlier of the last date that the Option could have been exercised under the
initial term of the Option and the date that is 10 years after the initial date
of grant, unless said extension is granted at a time when the exercise price of
the Option does not equal or exceed the Fair Market Value of the stock that
could be purchased pursuant to the Option.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise permitted under <u>Section 11</u>, during the
lifetime of the Optionee, the Option shall be exercisable only by the Optionee;
provided, that in the event of the legal disability of an Optionee, the
guardian or personal representative of the Optionee may exercise the Option.
However, if the Option is an ISO it may be exercised by the guardian or
personal representative of the Optionee only if such guardian or personal
representative obtains a ruling from the Internal Revenue Service or an opinion
of counsel to the effect that neither the grant nor the exercise of such power
is violative of Section 422(b)(5) of the Code. Any opinion of counsel must be
both from counsel and in a form acceptable to the Option Committee.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Option Committee may determine whether any Option shall be
exercisable as provided in Subsection (a) of this <u>Section 7</u> or whether
the Options shall be exercisable in installments only; if the Option Committee
determines the latter, it shall determine the number of installments and the
percentage of the Option exercisable at each installment date. All such
installments shall be cumulative.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Optionee ceases to be employed by either the Company or a Related
Company because of the death or permanent and total disability (as defined in
Section 22(e) (3) of the Code) of the Optionee, any Option held by the Optionee
at the time his employment ceases may be exercised within 90 days after the
date his employment ceased, but only to the extent that the Option was
exercisable according to its terms on the date the Optionee&#146;s employment ceased.
After such 90-day period, any unexercised portion of an Option shall expire.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of Subsection (d) of this <u>Section 7</u>,
if an Optionee&#146;s employment by the Company or a Related Company ceases for any
reason other than the Optionee&#146;s death or permanent and total disability, any
unexercised portion of any Option held by the Optionee at the time his
employment ceases may be exercised within 30 days after the date his employment
ceased, but only to the extent that the Option was exercisable according to its
terms on the date the Optionee&#146;s employment ceased. After such date, any
unexercised portion of an Option shall expire.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option shall be exercised in whole or part by delivering to the
office of the Treasurer of the Company written notice of the number of shares
with respect to which the Option is to be exercised and by paying in full the
purchase price for the Option Shares purchased as set forth in <u>Section 8</u>;
provided, that an Option may not be exercised in part unless the purchase price
for the Option Shares purchased is at least $2,000.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-5-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required to qualify for the exemption provided by Rule
16b-3 under the Exchange Act, and any successor provision, at least six months
must elapse from the date of acquisition of an Option by any person who is
subject to the reporting requirements of Section 16(a) of the Exchange Act to
the date of exercise of such Option or disposition of the Option Shares.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Payment for Option Shares</u>. If the purchase price of the Option
Shares purchased by any Optionee at one time exceeds $2,000, the Option
Committee may permit all or part of the purchase price for the Option Shares to
be paid by the Optionee by (a) delivering to the Company shares of the
Company&#146;s Common Stock previously owned by the Optionee with a Fair Market
Value as of the date of payment equal to the portion of the purchase price for
the Option Shares that the Optionee does not pay in cash, (b) having shares
withheld from the amount of shares to be received by the Optionee, (c)
delivering an irrevocable subscription agreement obligating the Optionee to
take and pay for the shares to be purchased within one year of the date of such
exercise, or (d) complying with any other payment mechanisms as the Option
Committee may approve from time to time. As a condition to the exercise of any
Option granted under this Plan, the Optionee shall make such arrangements as
the Option Committee may require for the satisfaction of any federal, state or
withholding tax obligations which may arise in connection with such exercise.
The issuance, transfer or delivery of certificates of shares of Common Stock
pursuant to the exercise or Options may be delayed, at the discretion of the
Option Committee, until the Option Committee is satisfied that the applicable
requirements of federal and state securities laws and the withholding
provisions of the Code have been met. Until such person has been issued a
certificate or certificates for the Option Shares so purchased, he or she shall
possess no rights of a recordholder with respect to any of such shares.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Change in Stock, Adjustments, Inc.</u></h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that each of the outstanding shares of Common Stock (other
than shares held by dissenting shareholders which are not changed or exchanged)
should be changed into, or exchanged for, a different number or kind of shares
of stock or other securities of the Company, or, if further changes or
exchanges of any stock or other securities into which the Common Stock shall
have been changed, or for which it shall have been exchanged, shall be made
(whether by reason of merger, consolidation reorganization, recapitalization,
stock dividends, reclassification, split-up, combination or shares or
otherwise), then there shall be substituted for each share of Common Stock that
is subject to the Plan but not subject to an outstanding Option thereunder, the
number and kind of shares of stock or other securities into which each
outstanding share of Common Stock (other than shares held by dissenting
shareholders which are not changed or exchanged) shall be so changed or for
which each outstanding share of Common Stock (other than shares held by
dissenting shareholders) shall be exchanged, provided, in the event that the
Optionee is providing direct services to the Company at the time the shares are
substituted, such shares shall constitute &#147;service recipient stock&#148; as that
term is defined by the IRS for purposes of Section 409A of the Code.&nbsp; Any
securities so substituted shall be subject to similar successive adjustments.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-6-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any such changes or exchanges, the Option Committee
shall determine whether, in order to prevent dilution or enlargement of rights,
an adjustment should be made in the number, or kind, or Option price of the
shares or other securities then subject to an Option or Options granted
pursuant to the Plan and the Option Committee shall make any such adjustment,
and such adjustments shall be made and shall be effective and binding for all
purposes of the Plan.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Relationship to Employment</u>. Nothing contained in the Plan, or in
any Stock Award granted pursuant to the Plan, shall confer upon any recipient
or holder of a Stock Award any right with respect to continuance of employment
by the Company or any Related Company, or interfere in any way with the right
of the Company or any Related Company to terminate the employment of a Stock
Award recipient or holder at any time.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Nontransferability of Option</u>. No Option granted under the Plan
shall be transferable by the Optionee, either voluntarily or involuntarily,
except by will or the laws of descent and distribution, pursuant to a qualified
domestic relations order as defined in the Code, or pursuant to the Employee
Retirement Income Security Act or rules promulgated thereunder; except that (a)
Optionees who are not subject to Section 16(b) of the Exchange Act may upon
written notice transfer an Option (i) to an Optionee&#146;s spouse, parents,
siblings, or lineal descendants, or (ii) to a trust for the benefit of the
Optionee or any of the Optionee&#146;s spouse, parents, siblings, or lineal
descendants, or (iii) to any corporation or partnership controlled by the
Optionee; and (b) Optionees who are subject to Section 16(b) of the Exchange
Act may transfer Options to immediate family members and family trusts. No
Option shall be subject to execution, attachment or similar process. Except as
specifically provided herein, any attempt to transfer the Option shall void the
Option.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Restricted Stock</u>: The Option Committee may grant shares of
Restricted Stock pursuant to this Plan.&nbsp; To the extent consistent with the
Company&#146;s Bylaws, at the Option Committee&#146;s election, shares of Restricted
Stock may be (i) held in book entry form subject to the Company&#146;s instructions
until any restrictions relating to the Restricted Stock lapse, or (ii)&nbsp;evidenced
by a certificate, which certificate shall be held in such form and manner as
determined by the Option Committee and shall contain an appropriate legend
clearly stating that the transferability of the Restricted Stock represented by
the certificate is restricted by the Restricted Stock Agreement and this Plan.&nbsp;
The Restricted Stock Agreements shall be in such form and shall contain such
terms and conditions as the Option Committee shall deem appropriate from time
to time and the terms and conditions of separate Restricted Stock Agreements
need not be identical; <u>provided</u>, <u>however</u>, that each Restricted
Stock Agreement shall include (through incorporation of the provisions hereof
by reference in the agreement or otherwise) the substance of each of the following
provisions:</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Consideration</u>. Restricted Stock may be awarded in consideration
for (A)&nbsp;past or future services actually or to be rendered to the Company
or a Related Company, or (B)&nbsp;any other form of legal consideration that
may be acceptable to the Option Committee in its sole discretion and
permissible under applicable law.</h2>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
- -7-</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<u><br clear=all
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</u>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Vesting</u>. Shares of Restricted Stock may be subject to forfeiture
to the Company in accordance with a vesting schedule to be determined by the
Option Committee in its sole discretion and set forth in the Restricted Stock
Agreement.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Termination of Service</u>. In the event a Restricted Stock holder
ceases to be employed by either the Company or a Related Company, the Company
may receive pursuant to a forfeiture provision to be determined by the Option
Committee in its sole discretion and set forth in the Restricted Stock
Agreement, any or all Restricted Shares that have not vested as of the date of
termination.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Transferability</u>. Rights to acquire shares of Common Stock under a
Restricted Stock Agreement shall be transferable by the holder only upon such
terms and conditions as are set forth in the Restricted Stock Agreement, as the
Option Committee shall determine in its sole discretion, so long as such Common
Stock remains subject to the terms and conditions of the Restricted Stock
Agreement.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Rights as a Shareholder</u>. No person shall have any rights as a
shareholder with respect to any shares covered by an Stock Award until that
person shall become the holder of record of such shares (whether or not subject
to forfeiture) and, except as provided in <u>Section&nbsp;9</u>, no adjustments
shall be made for dividends or other distributions or other rights as to which
there is an earlier record date.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Securities Laws Requirements</u>. No Award Shares shall be issued
unless and until, in the opinion of the Company, any applicable registration
requirements of the Securities Act of 1933, as amended (&#147;<u>Securities Act</u>&#148;),
any applicable listing requirements of any securities exchange on which stock
of the same class is then listed, and any other requirements of law or of any
regulatory bodies having jurisdiction over such issuance and delivery, have
been fully complied with. Each Option, each Restricted Stock certificate and
each Award Share certificate may be imprinted with legends reflecting federal
and state securities laws, restrictions and conditions, and the Company may
comply therewith and issue &#147;stop transfer&#148; instructions to its transfer agent
and registrar in good faith without liability.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Disposition of Shares</u>. Each Optionee, as a condition of exercise,
and each Restricted Stock holder, as a condition to the Restricted Stock grant,
shall represent, warrant and agree, in a form of written certificate approved
by the Company, as follows: (a) that all Award Shares are being acquired solely
for his own account and not on behalf of any other person or entity; (b) that
no Award Shares will be sold or otherwise distributed in violation of the
Securities Act, or any other applicable federal or state securities laws; (c) that
if he is subject to reporting requirements under Section 16(a) of the Exchange
Act, he will (i) not violate Section&nbsp;16(b) of the Exchange Act, (ii)
furnish the Company with a copy of each Form 4 and Form 5 filed by him, and
(iii) timely file all reports required under the federal securities laws; and
(d)&nbsp;that he will report all sales of Award Shares to the Company in
writing on a form prescribed by the Company.</h1>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-8-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Effective Date of Plan; Termination Date of Plan</u>. The Plan shall
be effective on the date of the approval of the Plan by the affirmative vote of
the holders of a majority of the Company&#146;s securities entitled to vote and
represented at a meeting duly held in accordance with applicable law. The
initial Plan was adopted, subject to shareholder approval, by the Board as of
October 16, 2003 and approved by the shareholders on December 11, 2003. This
first amended and restated Plan was adopted, subject to shareholder approval,
by the Board as of October 18, 2006. The Plan shall terminate on October 16, 2013,
except as to Stock Awards previously granted and outstanding under the Plan at
that time. No Stock Awards shall be granted after the date on which the Plan
terminates. In no event may the Option period exceed ten years from the date on
which the Option is granted. The Plan may be abandoned or terminated at any
earlier time by the Board, except with respect to any Options then outstanding
under the Plan.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Limitation on Amount of Option</u>. The aggregate Fair Market Value
(determined at the time any ISO is granted) of the Common Stock with respect to
which an Optionee&#146;s ISOs, together with incentive stock options granted under
any other plan of the Company and any parent, are exercisable for the first
time by such Optionee during any calendar year shall not exceed $100,000. If an
Optionee holds ISOs that become first exercisable (including as a result of
acceleration of exercisability under the Plan) in any one year for shares
having a Fair Market Value at the date of grant in excess of $100,000, then the
most recently granted of the ISOs, to the extent that they are exercisable for
shares having an aggregate Fair Market Value in excess of the limit, shall be
deemed to be NQOs.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Ten Percent Shareholder Rule</u>. With respect to ISOs, no Option may
be granted to a Key Employee who, at the time the Option is granted, owns stock
possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company or of any &#147;parent corporation&#148; or &#147;subsidiary
corporation&#148; as those terms are defined in Section 425 of the Code, unless at
the time the Option is granted the purchase price for the Option shares is at
least 110 percent of the Fair Market Value of the Option Shares at the time the
ISO is granted and such Option by its terms is not exercisable after the
expiration of five years from the Date of Grant. For purposes of the preceding
sentence, stock ownership shall be determined as provided in Section 425 of the
Code.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Withholding Taxes</u>. The Company, or any Related Company, may take
such steps as it may deem necessary or appropriate for the withholding of any
taxes which the Company, or any Related Company, is required by any law or
regulation or any governmental authority, whether federal, state or local,
domestic or foreign, to withhold in connection with any Stock Award including,
but not limited to, the withholding of all or any portion of any payment or the
withholding of issuance of Option Shares to be issued upon the exercise of any
Option.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Change in Control, Stock Dividends, Reorganization and Other
Extraordinary Actions</u>.</h1>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If (i) the Company shall at any time be involved in a transaction
described in Section 424(a) of the Code (or any successor provision) or any
&#147;corporate transaction&#148; described in the regulations thereunder; (ii) the
Company shall declare dividends payable in, or shall subdivide or combine, its
Common Stock or (iii) any other event with substantially the same effect shall
occur, the Option Committee shall, with respect to each outstanding Option,
proportionately adjust the number of Option Shares and/or the exercise price
per share so as to preserve the rights of the Optionee substantially
proportionate to the rights of the Optionee prior to such event, and to the
extent that such action shall include an increase or decrease in the number of
Option Shares subject to outstanding Options, the number of shares available
under this Plan shall automatically be increased or decreased, as this case may
be, proportionately, without further action on the part of the Option
Committee, the Company or the Company&#146;s shareholders.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
- -9-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Company is liquidated or dissolved, the Option Committee may
allow the holders of any outstanding Options to exercise all or any part of the
unvested portion of the Options held by them; provided, however, that such
Options must be exercised prior to the effective date of such liquidation or
dissolution. If the Option Holders do not exercise their Options prior to such
effective date, each outstanding Option shall terminate as of the effective
date of the liquidation or dissolution. </h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The grant of a Stock Award shall not affect in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge, consolidate or
dissolve, to liquidate or to sell or transfer all or part of its business or
assets. </h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of a Change in Control (as defined below) of the Company,
the Option Committee may, in its discretion, accelerate all outstanding Options
so that they immediately become fully vested and immediately exercisable for
the duration of the term of the Option. For purposes of this Subsection (d), &#147;<u>Change
in Control</u>&#148; shall mean either one of the following: (i) when any &#147;person,&#148;
as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other
than a shareholder of the Company on the date of this Plan), the Company, a
subsidiary or a Company Employee Benefit Plan, (including any trustee of such
Plan acting as trustee) becomes, after the date of this Plan, the &#147;beneficial owner&#148;
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company&#146;s then outstanding securities; or (ii) the occurrence of a
transaction requiring shareholder approval, arid involving the sale of all or
substantially all of the assets of the Company or the merger of the Company
with or into another corporation.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If at any time the Company declares an Extraordinary Dividend, as
defined below, all Options shall accelerate and thereupon become fully vested
and immediately exercisable for the duration of the term of the Option. For
purposes of this Subsection (e), &#147;<u>Extraordinary Dividend</u>&#148; shall mean a
cash dividend payable to holders of record of the Common Stock in an amount in
excess of 10% of the then Fair Market Value of the Company&#146;s Common Stock.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Other Provisions</u>.</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of a masculine gender in the Plan shall also include within its
meaning the feminine, and the singular may include the plural, and the plural
may include the singular, unless the context clearly indicates to the contrary.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any expenses of administering the Plan shall be borne by the Company.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-10-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Plan shall be construed to be in addition to any and all other
compensation plans or programs. Neither the adoption of the Plan by the Board
nor the submission of the Plan to the shareholders of the Company shall be
construed as creating any limitations on the power of authority of the Board to
adopt such other additional incentive or other compensation arrangements as the
Board may deem necessary or desirable.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporate laws of the State of Colorado shall govern all issues
concerning the relative rights of the Company and its shareholders under the
Plan. All other questions and obligations under the Plan shall be construed and
enforced in accordance with the internal laws of the State of California,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of California or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
California.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained in this Plan, the
following provisions, in compliance with the California Corporate Securities
Law of 1968 and the rules and regulations promulgated thereunder, shall apply
to the Plan and all Options granted under the Plan:</h2>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option shall be exercisable in whole or in consecutive
installments, cumulative or otherwise, during its term as determined in the
discretion of the Option Committee. Each Option granted to an Optionee shall
provide for the right to exercise at the rate of at least 20% per year over
five years from the date the Option is granted, subject to reasonable
conditions such as continued employment; however, in the case of an Option
granted to officers, directors, managers or consultants of the Company, the
Option may become fully exercisable, subject to reasonable conditions such as
continued employment, at any time or during any period established by the
Company.</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the Optionee&#146;s employment with the Company terminates for any
reason (other than involuntary dismissal for &#147;cause&#148; or voluntary resignation
in violation of any agreement to remain in the employ of the Company), he or
she may, at any time before the expiration of thirty days after termination or
before expiration of the Option, whichever first occurs, exercise the Option
(to the extent that the Option was exercisable by him or her on the date of the
termination of his or her employment); (B) if the Optionee&#146;s employment
terminates due to disability (as defined in Section 22(e)(3) of the Code and
subject to such proof of disability as the Option Committee may require), the
Option may be exercised by the Optionee (or by his guardian(s), or
conservator(s), or other legal representative(s)) before the expiration of six
months after termination or before expiration of the Option, whichever first
occurs (to the extent that the Option was exercisable by him or her on the date
of the termination of his or her employment); and (C) in the event of the death
of the Optionee, an Option exercisable by him or her at the date of his or her
death shall be exercisable by his or her legal representative(s), legatee(s),
or heir(s), or by his or her beneficiary or beneficiaries so designated by him
or her, as the case may be, within six months after his or her death or before
the expiration of the Option, whichever first occurs (to the extent that the
Option was exercisable by him or her on the date of his or her death).</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Optionees under the Plan who do not otherwise have access to financial
statements of the Company will receive the Company&#146;s financial statements at
least annually.</h3>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
- -11-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as permitted by rule 701 of the Securities Act, Options granted
under the Plan are nontransferable other than by will, by the laws of descent
and distribution, by instrument to an inter vivos or testamentary trust in
which the Options are to be passed to beneficiaries upon the death of the
trustor (settlor), or by gift to immediate family. The term &#147;immediate family&#148;
means any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law or sister-in-law, and also includes adoptive relationships.</h3>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>exhibit10-3.htm
<TEXT>
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<head>
<!-- Document Prepared With EDGARSTAR Software-->
<!-- Copyright 2007 EDGARSTAR TRADEMARK-->
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<title>Exhibit 10.3</title>


</head>

<body lang=EN-US>

<div style='page:Section1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>PRO-DEX, INC.</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>SECOND AMENDED AND RESTATED
DIRECTORS&#146; STOCK OPTION PLAN</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'><b>&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This
Second Amended and Restated Directors&#146; Stock Option Plan (the &#147;Plan&#148;) adopted
by Pro-Dex, Inc. (the &#147;Company&#148;) on May 25, 1994, and amended the 27<sup>th</sup>
day of February 1996, is amended this 4th day of December, 2007.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Definitions</u>.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:.5in'>Unless
otherwise indicated or required by the particular context, the terms</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>used in this Plan shall have the
following meanings:&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Board</u>:&nbsp; &nbsp;&nbsp;
The Board of Directors of Pro-Dex, Inc.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Code</u>:&nbsp;&nbsp; &nbsp;&nbsp;
The Internal Revenue Code of 1986, as amended.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Common Stock</u>:&nbsp;&nbsp;&nbsp;
The no par value common stock of Pro-Dex, Inc.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'><u>Company</u>:&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro-Dex, Inc., a corporation incorporated under the laws of</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>California, and any successors in
interest by merger, operation of law, assignment or purchase of all or
substantially all of the property, assets or business of the Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Date
of Grant</u>:&nbsp;&nbsp;&nbsp; The date on which an Option (see below) is granted under the
Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Fair
Market Value</u>:&nbsp;&nbsp; If, at any time an Option is granted under the Plan, the
Company&#146;s Common Stock is publicly traded,&nbsp; Fair Market Value shall be
determined as of the last business day for which the prices or quotes discussed
in this sentence are available prior to the date an Option is granted and shall
mean (a) the average (on that date) of the high and low prices of the Common
Stock on the principal national securities exchange by which the Common Stock
is traded, if the stock is then traded on a national securities exchange; or,
(b) the last reported sale price (on that date) of the Common Stock on an
established securities market, if the stock is not then traded on a national
securities exchange; or (c) the closing bid price (or average of bid prices)
last quoted (on that date) by an established securities market or quotation
service for over-the-counter securities, if the last sale price is not reported
for the stock on the service or market on which the stock is quoted.&nbsp; However,
if the Common Stock is not publicly-traded at the time an Option is granted
under the Plan, Fair Market Value shall be as determined in good faith by the
Board after such consultation with outside legal, accounting and other experts
as the Board may deem advisable, provided that such
valuation shall take into account all available information material to the
value of the company, including but not limited to the value of the tangible
and intangible assets of the company, the present value of its anticipated
future cash flows, the market value of the stock or equity interests in other
entities engaged in substantially the same business, recent arm&#146;s length
transactions involving the sale of such stock, and other relevant factors.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
1</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Nonemployee
Director:</u> A person who is a member of the Board of Directors and who is not
an employee of the Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Option:</u>&nbsp;&nbsp;
The rights to purchase Common Stock granted pursuant to the terms and
conditions of an Option Agreement (defined below</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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;<u>Option
Agreement</u>:&nbsp;&nbsp;&nbsp;&nbsp; The written agreement (including any amendments or
supplements thereto) between the Company and a Nonemployee Director designating
the terms and conditions of an Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Option
Shares</u>:&nbsp; The shares of Common Stock underlying an Option granted to an
Employee.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; <u>Optionee</u>:&nbsp;&nbsp;&nbsp;&nbsp;
A Nonemployee Director who has been granted an Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;<u>Purpose and Scope</u>.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(a)&nbsp;&nbsp;&nbsp; The
purpose of this Plan is to advance the interests of the Company and its
shareholders by affording Nonemployee Directors, whose participation and
guidance contribute to the successful operation of the Company, and affording
them an opportunity for investment in the Company and the incentive advantages
inherent in stock ownership in this Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(b)&nbsp; This Plan
authorizes that Options be granted to Nonemployee Directors according to the
formula set forth in Section 3 of this Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;<u>Operation of the Plan</u>.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;margin-right:0in; margin-top:0in'>
(a) <u>Grant
of Options:&nbsp; Amount and Timing.</u>&nbsp; Options to purchase 20,000 in shares of
Common Stock shall be granted under the Plan to each Nonemployee Director at
the later to occur of (i) the date this Plan is adopted by the Company&#146;s
shareholders, or (ii) the date he or she is first elected or appointed a
Nonemployee Director of the Company.&nbsp; In addition, effective on the second and
third anniversary dates of commencement of service on the Board, options to
purchase an additional 15,000 shares shall automatically be granted to the
Optionee provided that, at that time, he or she is a Nonemployee Director.&nbsp; All
Options shall be exercisable only as set forth in Sections 3(c) and 6 below and
shall be subject to the other terms and conditions set forth in this Plan or
otherwise established by the Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.25in'>(b) <u>Option
Purchase Price.</u>&nbsp; The exercise price for each Option Share shall be the
Fair Market Value of the Company&#146;s Common Stock on the Date of Grant.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.25in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.25in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
2</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;margin-right:0in; margin-top:0in'>&nbsp;(c)&nbsp;
<u>Term.</u>&nbsp; Each Option shall expire ten years after the Date of Grant,&nbsp; except that an
Option will expire, if not exercised, 90 days after the Optionee ceases to be a
director of the Company. In no event shall an Option be extended beyond the
initial ten year term unless said extension is granted at a time when the
exercise price of the Option does not equal or exceed the Fair Market Value of
the stock that could be purchased pursuant to the Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(d)&nbsp;&nbsp;&nbsp; <u>Amendments.</u>&nbsp;&nbsp;&nbsp;
This Plan may be changed or modified from time to time provided, however, that,
(A) no such change or modification shall impair any Option previously granted
under the Plan; (B) the provisions relating to the amount, price and timing of
the Options shall not be amended more than once every six months other than to
comport with changes in the Code, the Employee Retirement Income Security Act,
or rules promulgated thereunder; and (C) the approval by the affirmative vote
of the holders of a majority of shares of the Company&#146;s securities present, or
represented, and entitled to vote at a meeting duly held in accordance with the
applicable laws of the State of Colorado, shall be required for any amendment
which would do any of the following:</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; modify
the eligibility requirements for receiving Options under the Plan;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(ii) &nbsp;&nbsp;&nbsp; except
as provided in Section 8 relative to capital changes, the number of shares
purchasable pursuant to the granting of any Option hereunder or the exercise
price of each Option;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(iii)&nbsp;&nbsp;&nbsp; the
maximum term of Options granted;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; (iv) &nbsp;&nbsp;&nbsp;the
minimum price at which Options may be granted;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:100.5pt;text-align:justify;text-indent:
- -28.5pt'>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the dollar amount pursuant to which Options may be granted at any</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; one
time;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(vi)&nbsp;&nbsp;&nbsp;&nbsp; the
timing of Option Grants; or</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(vii)&nbsp;&nbsp;&nbsp; the
term of the Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Shares</u>.&nbsp; </p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board is authorized
to appropriate, issue and sell for the purposes of the Plan, an aggregate maximum of 500,000
shares of Common Stock, including both treasury and newly issued shares, or the
number and kind of shares of stock or other securities which in accordance with
Section 8 shall be substituted for the 500,000 shares or into which such
500,000 shares shall be adjusted.&nbsp; All or any unsold shares subject to an
Option that for any reason expires or otherwise terminates before it has been
exercised, again may be made subject to other Options granted under the Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">3</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Eligibility</u>.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>Options shall be granted under
the Plan only to Nonemployee Directors provided that any Nonemployee Director
may waive his right to participate in the Plan.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Exercise of Options</u>.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option granted pursuant to this Plan shall be exercisable in full
commencing six months after the Date of Grant. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided in Section 9, during the lifetime of the Optionee, the Option shall be exercisable only by the Optionee; provided that,
in the event of the legal disability of an Optionee, the guardian or personal
representative of the Optionee may exercise the Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option shall be exercised in whole or in part by delivering to the
office of the Treasurer of the Company written notice of the number of shares
with respect to which the Option is to be exercised and by paying in full the
purchase price for the Option Shares as set forth in Section 7 herein;
provided, that an Option may not be exercised in part unless the purchase price
for the Option Shares purchased is at least $2,000.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Option may be exercised, and no Option Shares may be sold,
transferred or otherwise disposed of for a period of at least six months
following the Date of Grant of the Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment for Option Shares.</u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.75in;text-align:justify;text-indent:
- -.25in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon exercise of any Option, the aggregate exercise price shall be paid
to the Company in cash or by certified or cashier&#146;s check.&nbsp; For any single
purchase by an Optionee of Option Shares at a total purchase price in excess of
$2,000, the Company, in its sole discretion, upon request by the Optionee, may
permit all or part of the purchase price for the Option Shares to be paid by
(a) delivery to the Company for cancellation shares of the Common Stock
previously owned by the Optionee (&#147;Previously Owned Shares&#148;) with a Fair Market
Value as of the date of the payment equal to the portion of the purchase price
for the Option Shares that the Optionee does not pay in cash; (b) having shares
withheld from the amount of shares to be received by the Optionee; (c)
delivering an irrevocable subscription agreement obligating the Optionee to
take and pay for the shares to be purchased within one year of the date of such
exercise; or (d) complying with any other payment mechanism as the Company may
approve from time to time.&nbsp; Notwithstanding the above, an Optionee shall be
permitted to exercise his Option by delivering Previously Owned Shares only if
he has held, and provides appropriate evidence of such, the Previously Owned
Shares for more than six months prior to the date of exercise.&nbsp; This period
(the &#147;Holding Period&#148;) may be extended by the Company acting in its sole
discretion as is necessary, in the opinion of the Company, so that, under
generally accepted accounting principles, no compensation shall be considered
to have been or to be paid to the Optionee as a result of the exercise of the
Option in this manner.&nbsp; At the time the Option is exercised, the Optionee shall
provide an affidavit, and such other evidence and documents as the Company shall
request, to establish the Optionee&#146;s Holding Period.&nbsp; As indicated above, an
Optionee may deliver shares of Common Stock as part of the purchase price only
if the Company, in its sole discretion agrees, on a case by case basis, to
permit this form of payment.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
4</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify;text-indent:
21.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:51.0pt;text-align:justify;text-indent:
21.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Change
in Stock, Adjustments, Etc.</u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";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; In the
event that each of the outstanding shares of Common Stock (other</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>than shares held
by dissenting shareholders which are not changed or exchanged) should be
changed into, or exchanged for, a different number or kind of shares of stock
or other securities of the Company, or if further changes or exchanges of any
stock or other securities into which the Common Stock shall have been changed,
or for which it shall have been exchanged, shall be made (whether by reason of
merger, consolidation, reorganization, recapitalization, stock dividends,
reclassification, split-up, combination of shares or otherwise) then there
shall be substituted for each share of Common Stock that is subject to the Plan
but not subject to an outstanding Option hereunder, the number and kind of
shares of stock or other securities into which each outstanding shares of
Common Stock (other than shares held by dissenting shareholders which are not
changed or exchanged) shall be so changed or for which each outstanding share
of Common Stock (other than shares held by dissenting shareholders) shall be so
changed or for which each such share shall be exchanged, provided, in the event
that the Optionee is providing direct services to the Company at the time the
shares are substituted, such shares shall constitute &#147;service recipient stock&#148;
as that term is defined by the IRS for purposes of Section 409A of the Code.&nbsp;
Any securities so substituted shall be subject to similar successive adjustments.
</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
the event of any such changes or exchanges, (a) the number, or kind, or
exercise price of the Option Shares or other securities that are then subject
to an Option or Options granted pursuant to the Plan shall be deemed
automatically adjusted in order to prevent dilution or enlargement of rights
and (b) such adjustments shall be effective and binding for all purposes or the
Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Nontransferability
of Option.</u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except
as herein provided, no Option granted under the Plan shall be transferable by
the Optionee, either voluntarily or involuntarily, except by will, by the laws
of descent and distribution, or pursuant to a qualified domestic relations
order as defined in the Code or the Employee Retirement Income Security Act or
rules promulgated thereunder; and no Option shall be subject to execution,
attachment or similar process.&nbsp; Any attempt to transfer an Option except as
otherwise herein provided shall void the Option.&nbsp; Notwithstanding anything
herein to the contrary, an Option may be transferred to an immediate family
member or a family trust if such transfer is then permitted by the rules
adopted under Section 16(b) of the Securities Exchange Act of 1934, as amended.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
5</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Rights as a Shareholder.</u></p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0.5in;text-align:justify; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No person shall
have any rights as a shareholder with respect to any shares covered by an
Option until that person becomes the holder of record of such shares and,
except as provided in Section 8, no adjustments shall be made for dividends or
other distributions or other rights as to which there is an earlier record
date.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Securities Laws Requirements.</u></p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0.5in;text-align:justify; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Option
Shares shall be issued unless and until, in the opinion of the Company, any
applicable registration requirements of the Securities Act of 1933, as amended
(&#147;Securities Act&#148;), any applicable listing requirements of any securities
exchange on which stock of the same class is then listed, and any other
requirement of law or of any regulatory bodies having jurisdiction over such
issuance and delivery, have been fully complied with.&nbsp; Each Option Agreement and
each Option Share certificate may be imprinted with legends reflecting federal
and state securities laws restrictions and conditions, and the Company may
comply therewith and issue &#147;stop transfer&#148; instructions to its transfer agent
and registrar in good faith without liability.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Disposition of Shares.</u></p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0.5in;text-align:justify; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent
reasonably requested by the Company, each Optionee, as a condition of
exercise, shall represent, warrant and agree, in a form of written certificate
approved by the Company, as follows:&nbsp; (a) that all Option Shares are being
acquired solely for his/her own account and not on behalf of any other person
or entity; (b) that no Option Shares will be sold or otherwise distributed in
violation of the Securities Act or any other applicable federal or state
securities laws; (c) that he/she will report all sales of Option Shares to the
Company in writing on a form prescribed by the Company; and (d) that if he/she
is subject to the reporting requirements under Section 16(a) of the Exchange
Act (i) he will not violate Section 16(b) of the Exchange Act, (ii) he will
furnish the Company with a copy of each Form 4 and Form 5 filed by him, and
(iii) he will timely file all reports required under the federal securities
laws.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">6</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Effective Date of Plan; Termination Date of Plan</u>.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:.5in'>The
Plan shall be effective on the date of&nbsp; the Plan has been approved by the Board
of Directors and the shareholders of the Company and shall terminate at
midnight on a date which is ten years after the effective date, except as to
Options previously granted and outstanding under the Plan at that time. No
Options shall be granted after the date on which the Plan terminates.&nbsp; The Plan
may be abandoned or terminated at any earlier time by the affirmative vote of
the holders of a majority of the shares of Common Stock present, or
represented, and entitled to vote at a meeting duly held in accordance with the
applicable laws of the State of California, except with respect to any Options
then outstanding under the Plan.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Withholding Taxes</u>. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:.5in'>The
Option Agreement shall provide that the Company may take such steps as it may
deem necessary or appropriate for the withholding of any taxes which the
Company is required by any law or regulation or any governmental authority,
whether federal, state or local, domestic or foreign, to withhold in connection
with any Option including, but riot limited to, the withholding of all or any
portion of any payment or the withholding of issuance of Option Shares upon the
exercise of any Option.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Other Provisions.</u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>The following
provisions are also in effect under the Plan:</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; margin-right:0in; margin-top:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp; The
use of a masculine gender in the Plan shall also include within its meaning the
feminine, and the singular may include the plural, and the plural may include
the singular, unless the context clearly indicates to the contrary. </p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;text-indent:
3.0pt; margin-right:0in; margin-top:0in'>(b)&nbsp; Any expenses of administering the plan shall be borne by the
Company.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1in;text-align:justify;margin-right:0in; margin-top:0in'>(c)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;This
Plan shall be construed to be in addition to any and all other compensation
plans or programs.&nbsp; The adoption of the Plan by the shareholders of the Company
shall not be construed as creating any limitations on the power or authority of
the Board to adopt such other additional incentive or other compensation
arrangements as the Board may deem necessary or desirable. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify'>(d)&nbsp;&nbsp;&nbsp; The
validity, construction, interpretation, administration and effect of the Plan
and of its rules and regulations, and the rights of any and all persons having
or claiming to have an interest therein or thereunder shall be governed by and
determined exclusively and solely in accordance with the laws of the State of
Colorado. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.25in;text-align:center; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-right:0in; margin-top:0in' align="center">********</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">
7</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>exhibit10-4.htm
<TEXT>
<html>

<head>
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<title>Exhibit 10.4</title>


</head>

<body lang=EN-US>

<div style='page:Section1;'>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>PRO-DEX, INC.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>2004 AMENDED AND RESTATED DIRECTORS&#146; STOCK OPTION PLAN</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>This 2004 Amended and Restated Directors&#146; Stock Option Plan,
adopted in consideration for services rendered and to be rendered to Pro-Dex,
Inc. and related companies, is amended this 4th day of December, 2007 (the &#147;<u>Plan</u>&#148;).</p>

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1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Definitions</u>. Unless otherwise indicated or required by the
particular context, the terms used in this Plan shall have the following
meanings:</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Board</u>: The Board of Directors of Pro-Dex, Inc.</h2>

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(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Code</u>: The Internal Revenue Code of 1986, as amended.</h2>

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(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u>: The no par value common stock of Pro-Dex, Inc.</h2>

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(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Company</u>: Pro-Dex, Inc., a corporation incorporated under the
laws of Colorado, and any successors in interest by merger, operation of law,
assignment or purchase of all or substantially all of the property, assets or
business of the Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Date of Grant</u>: The date on which an Option (see below) is granted
under the Plan.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fair Market Value</u>: If, at any time an Option is granted under the Plan,
the Company&#146;s Common Stock is publicly traded, Fair Market Value shall be
determined as of the last business day for which the prices or quotes discussed
in this sentence are available prior to the date an Option is granted and shall
mean (i) the average (on that date) of the high and low prices of the Common
Stock on the principal national securities exchange by which the Common Stock
is traded, if the stock is then traded on a national securities exchange; or,
(ii) the last reported sale price (on that date) of the Common Stock on an established
securities market, if the stock is not then traded on a national securities
exchange; or (iii) the closing bid price (or average of bid prices) last quoted
(on that date) by an established securities market or quotation service for
over-the-counter securities, if the last sale price is not reported for the
stock on the service or market on which the stock is quoted.&nbsp; However, if the
Common Stock is not publicly-traded at the time an Option is granted under the
Plan, Fair Market Value shall be as determined in good faith by the Board after
such consultation with outside legal, accounting and other experts as the Board
may deem advisable provided that such
valuation shall take into account all available information material to the
value of the company, including but not limited to the value of the tangible
and intangible assets of the company, the present value of its anticipated
future cash flows, the market value of the stock or equity interests in other
entities engaged in substantially the same business, recent arm&#146;s length
transactions involving the sale of such stock, and other relevant factors.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Nonemployee Director</u>: A person who is a member of the Board of Directors
and who is not an employee of the Company.</h2>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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</u>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option</u>: The rights to purchase Common Stock granted pursuant
to the terms and conditions of an Option Agreement (defined below).</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Option Agreement</u>:&nbsp; The written agreement (including any amendments or
supplements thereto) between the Company and a Nonemployee Director designating
the terms and conditions of an Option.</h2>

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(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Option Shares</u>: The shares of Common Stock underlying an Option
granted to a Nonemployee Director.</h2>

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(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Optionee</u>: A Nonemployee Director who has been granted an
Option.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Purpose and Scope</u>.</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this Plan is to
advance the interests of the Company and its shareholders by affording Nonemployee Directors, whose participation and guidance contribute to the
successful operation of the Company, and affording them an opportunity for
investment in the Company and the incentive advantages inherent in stock
ownership in this Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Plan authorizes that Options
be granted to Nonemployee Directors according to the formula set forth in <u>Section
3</u> of this Plan.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is the further intent of the
Plan that it conform in all respects with the requirements of Rule 16b-3 of the
Securities and Exchange Commission under the Exchange Act (&#147;<u>Rule 16b-3</u>&#148;).
To the extent that any aspect of the Plan or its administration is at any time
viewed as inconsistent with the requirements of Rule 16b-3 or, in connection
with ISOs, the Code, that aspect shall be deemed to be modified, deleted, or
otherwise changed as necessary to ensure continued compliance with the Rule
16b-3 requirements.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Operation of the Plan</u>. </h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Grant of Options; Amount and
Timing</u>. Options to purchase 20,000
shares of Common Stock shall be granted under the Plan to each Nonemployee
Director at the later to occur of (i) the date this Plan is adopted by the
Company&#146;s shareholders, or (ii) the date he or she is first elected or
appointed a Nonemployee Director of the Company. In addition, effective on the
anniversary dates of commencement of service on the Board, options to purchase
an additional 15,000 shares shall automatically be granted to the Optionee
provided that, at that time, he or she is a Nonemployee Director. All Options
shall be exercisable only as set forth in <u>Sections 3(c) and 6</u> below and
shall be subject to the other terms and conditions set forth in this Plan or
otherwise established by the Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Purchase Price</u>. The exercise price for each Option Share shall be
the Fair Market Value of the Company&#146;s Common Stock on the Date of Grant.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Term</u>. Each Option shall expire ten years after the Date of
Grant, except that an Option will expire, if not exercised, 90 days after the
Optionee ceases to be a director of the Company.&nbsp; In no event shall an Option
be extended beyond the initial ten year term unless said extension is granted
at a time when the exercise price of the Option does not equal or exceed the
Fair Market Value of the stock that could be purchased pursuant to the Option.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>-2-</p>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
&nbsp;</h2>

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(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Amendments</u>. This Plan may be changed or modified from time to
time provided, however, that, (i) no such change or modification shall impair
any Option previously granted under the Plan; (ii) the provisions relating to
the amount, price and timing of the Options shall not be amended more than once
every six months other than to comport with changes in the Code, the Employee
Retirement Income Security Act, or rules promulgated thereunder, or other
applicable law; and (iii) the approval by the affirmative vote of the holders
of a majority of shares of the Company&#146;s securities present, or represented,
and entitled to vote at a meeting duly held in accordance with the applicable
laws of the State of Colorado, shall be required for any amendment which would
do any of the following:</h2>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
materially modify the eligibility
requirements for receiving Options under the Plan;</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; except as provided in <u>Section 8</u>
relative to capital changes, increase the number of shares purchasable pursuant
to the granting of any Option hereunder or the exercise price of each Option;</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;increase the maximum term of
Options granted;</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;decrease the minimum price at
which Options may be granted;</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;change the dollar amount pursuant
to which Options may be granted at any one time;</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;change the timing of Option
Grants; or</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:2.0in;text-indent:-.5in'>(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;increase the term of the Plan.</h3>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Number of Shares</u>. The Board is authorized to appropriate, issue and
sell for the purposes of the Plan, an aggregate maximum of 500,000 shares of
Common Stock, including both treasury and newly issued shares, or the number
and kind of shares of stock or other securities which in accordance with <u>Section
8</u> shall be substituted for the 500,000 shares or into which such 500,000
shares shall be adjusted. Such number of shares shall include any options
granted under any other stock option plan of the Company that may from time to
time become subject to and governed by the terms and conditions of this Plan.
All or any unsold shares subject to an Option that for any reason expires or
otherwise terminates before it has been exercised, again may be made subject to
other Options granted under the Plan.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Eligibility</u>. Options shall be granted under the Plan only to
Nonemployee Directors provided that any Nonemployee Director may waive his right
to participate in the Plan. </h1>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-3-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exercise of Options</u>. </h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option granted pursuant to
this Plan shall be exercisable in full commencing six months after the Date of
Grant, except as otherwise determined by the Board of Directors.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as otherwise provided in <u>Section
9</u>, during the lifetime of the Optionee, the Option shall be exercisable
only by the Optionee; provided that, in the event of the legal disability of an
Optionee, the guardian or personal representative of the Optionee may exercise
the Option.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option shall be exercised in
whole or in part by delivering to the office of the Treasurer of the Company
written notice of the number of shares with respect to which the Option is to
be exercised and by paying in full the purchase price for the Option Shares as
set forth in <u>Section 7</u> herein; provided, that an Option may not be
exercised in part unless the purchase price for the Option Shares purchased is
at least $2,000.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No Option may be exercised, and no
Option Shares may be sold, transferred or otherwise disposed of for a period of
at least six months following the Date of Grant of the Option.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-4-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>

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

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Payment for Option Shares</u>. Upon exercise of any Option, the aggregate exercise
price shall be paid to the Company in cash or by certified or cashier&#146;s check.
For any single purchase by an Optionee of Option Shares at a total purchase
price in excess of $2,000, the Company, in its sole discretion, upon request by
the Optionee, may permit all or part of the purchase price for the Option
Shares to be paid by (a) delivery to the Company for cancellation shares of the
Common Stock previously owned by the Optionee (&#147;<u>Previously Owned Shares</u>&#148;)
with a Fair Market Value as of the date of the payment equal to the portion of
the purchase price for the Option Shares that the Optionee does not pay in
cash; (b) having shares withheld from the amount of shares to be received by
the Optionee; (c) delivering an irrevocable subscription agreement obligating
the Optionee to take and pay for the shares to be purchased within one year of
the date of such exercise; or (d) complying with any other payment mechanism as
the Company may approve from time to time. Notwithstanding the above, an
Optionee shall be permitted to exercise his Option by delivering Previously
Owned Shares only if he has held, and provides appropriate evidence of such,
the Previously Owned Shares for more than six months prior to the date of
exercise. This period (the &#147;<u>Holding Period</u>&#148;) may be extended by the
Company acting in its sole discretion as is necessary, in the opinion of the
Company, so that, under generally accepted accounting principles, no
compensation shall be considered to have been or to be paid to the Optionee as
a result of the exercise of the Option in this manner. At the time the Option
is exercised, the Optionee shall provide an affidavit, and such other evidence
and documents as the Company shall request, to establish the Optionee&#146;s Holding
Period. As indicated above, an Optionee may deliver shares of Common Stock as
part of the purchase price only if the Company, in its sole discretion agrees,
on a case by case basis, to permit this form of payment.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Change in Stock, Adjustments,
Etc</u>.</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that each of the
outstanding shares of Common Stock (other than shares held by dissenting
shareholders which are not changed or exchanged) should be changed into, or
exchanged for, a different number or kind of shares of stock or other
securities of the Company, or if further changes or exchanges of any stock or
other securities into which the Common Stock shall have been changed, or for
which it shall have been exchanged, shall be made (whether by reason of merger,
consolidation, reorganization, recapitalization, stock dividends,
reclassification, split-up, combination of shares or otherwise) then there shall
be substituted for each share of Common Stock that is subject to the Plan but
not subject to an outstanding Option hereunder, the number and kind of shares
of stock or other securities into which each outstanding shares of Common Stock
(other than shares held by dissenting shareholders which are not changed or
exchanged) shall be so changed or for which each outstanding share of Common
Stock (other than shares held by dissenting shareholders) shall be so changed
or for which each such share shall be exchanged, provided that, in the event
that the Optionee is providing direct services to the Company at the time the
shares are substituted, such shares shall constitute &#147;service recipient stock&#148;
as that term is defined by the IRS for purposes of Section 409A of the Code.&nbsp;
Any securities so substituted shall be subject to similar successive
adjustments.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any such changes
or exchanges, (i) the number, or kind, or exercise price of the Option Shares
or other securities that are then subject to an Option or Options granted
pursuant to the Plan shall be deemed automatically adjusted in order to prevent
dilution or enlargement of rights and (ii) such adjustments shall be effective
and binding for all purposes or the Plan.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-5-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Nontransferability of Option</u>. Except as herein provided, no Option granted under
the Plan shall be transferable by the Optionee, either voluntarily or
involuntarily, except by will, by the laws of descent and distribution, or
pursuant to a qualified domestic relations order as defined in the Code or the
Employee Retirement Income Security Act or rules promulgated thereunder; and no
Option shall be subject to execution, attachment or similar process. Any
attempt to transfer an Option except as otherwise herein provided shall void
the Option. Notwithstanding anything herein to the contrary, an Option may be
transferred to an immediate family member or a family trust if such transfer is
then permitted by the rules adopted under Section 16(b) of the Securities
Exchange Act of 1934, as amended.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Rights as a Shareholder</u>. No person shall have any rights as a shareholder
with respect to any shares covered by an Option until that person becomes the
holder of record of such shares and, except as provided in <u>Section 8</u>, no
adjustments shall be made for dividends or other distributions or other rights
as to which there is an earlier record date.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Securities Laws Requirements</u>. No Option Shares shall be issued unless and until,
in the opinion of the Company, any applicable registration requirements of the
Securities Act of 1933, as amended (&#147;<u>Securities Act</u>&#148;), any applicable
listing requirements of any securities exchange on which stock of the same
class is then listed, and any other requirement of law or of any regulatory
bodies having jurisdiction over such issuance and delivery, have been fully
complied with. Each Option Agreement and each Option Share certificate may be
imprinted with legends reflecting federal and state securities laws
restrictions and conditions, and the Company may comply therewith and issue
&#147;stop transfer&#148; instructions to its transfer agent and registrar in good faith
without liability.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Disposition of Shares</u>. To the extent reasonably requested by the Company,
each Optionee, as a condition of exercise, shall represent, warrant and agree,
in a form of written certificate approved by the Company, as follows: (a) that
all Option Shares are being acquired solely for his/her own account and not on
behalf of any other person or entity; (b) that no Option Shares will be sold or
otherwise distributed in violation of the Securities Act or any other
applicable federal or state securities laws; (c) that he/she will report all
sales of Option Shares to the Company in writing on a form prescribed by the
Company; and (d) that if he/she is subject to the reporting requirements under
Section 16(a) of the Exchange Act (i) he will not violate Section 16(b) of the
Exchange Act, (ii) he will furnish the Company with a copy of each Form 4 and
Form 5 filed by him, and (iii) he will timely file all reports required under
the federal securities laws.</h1>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Effective Date of Plan;
Termination Date of Plan</u>. The Plan
shall be effective on the date the Plan has been approved by the Board of
Directors and the shareholders of the Company. The Plan was adopted, subject to
shareholder approval, by the Board as of October 16, 2003. The Plan shall
terminate on October 16, 2013, except as to Options previously granted and
outstanding under the Plan at that time. No Options shall be granted after the
date on which the Plan terminates. In no event may the Option period exceed ten
years from the date on which the Option is granted. The Plan may be abandoned
or terminated at any earlier time by the affirmative vote of the holders of a
majority of the shares of Common Stock present, or represented, and entitled to
vote at a meeting duly held in accordance with the applicable laws of the State
of Colorado, except with respect to any Options then outstanding under the
Plan.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>-6-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
&nbsp;</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Withholding Taxes</u>. The Option Agreement shall provide that the Company
may take such steps as it may deem necessary or appropriate for the withholding
of any taxes which the Company is required by any law or regulation or any
governmental authority, whether federal, state or local, domestic or foreign,
to withhold in connection with any Option including, but riot limited to, the
withholding of all or any portion of any payment or the withholding of issuance
of Option Shares upon the exercise of any Option.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Other Provisions</u>. The following provisions are also in effect under
the Plan:</h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of a masculine gender in
the Plan shall also include within its meaning the feminine, and the singular
may include the plural, and the plural may include the singular, unless the
context clearly indicates to the contrary. </h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any expenses of administering the
plan shall be borne by the Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Plan shall be construed to be
in addition to any and all other compensation plans or programs. The adoption
of the Plan by the shareholders of the Company shall not be construed as
creating any limitations on the power or authority of the Board to adopt such
other additional incentive or other compensation arrangements as the Board may
deem necessary or desirable.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporate laws of the State of
Colorado shall govern all issues concerning the relative rights of the Company
and its shareholders under the Plan. All other questions and obligations under
the Plan shall be construed and enforced in accordance with the internal laws
of the State of California, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of California or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of California.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.0in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the
contrary contained in this Plan, the following provisions, in compliance with
the California Corporate Securities Law of 1968 and the rules and regulations
promulgated thereunder, shall apply to the Plan and all Options granted under
the Plan:</h2>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option shall be exercisable
in whole or in consecutive installments, cumulative or otherwise, during its
term as determined in the discretion of the Board. Each Option granted to an Optionee shall provide for the right to exercise at the rate of at least 20%
per year over five years from the date the Option is granted, subject to
reasonable conditions such as continued employment or service; however, in the
case of an Option granted to officers, directors, managers or consultants of
the Company, the Option may become fully exercisable, subject to reasonable
conditions such as continued employment or service, at any time or during any
period established by the Company.</h3>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>-7-</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the Optionee&#146;s service with
the Company terminates for any reason (other than involuntary dismissal for
&#147;cause&#148; or voluntary resignation in violation of any agreement to remain in the
employ of the Company), he or she may, at any time before the expiration of
thirty days after termination or before expiration of the Option, whichever
first occurs, exercise the Option (to the extent that the Option was
exercisable by him or her on the date of the termination of his or her
service); (B) if the Optionee&#146;s service terminates due to disability (as
defined in Section 22(e)(3) of the Code and subject to such proof of disability
as the Option Committee may require), the Option may be exercised by the
Optionee (or by his guardian(s), or conservator(s), or other legal
representative(s)) before the expiration of six months after termination or
before expiration of the Option, whichever first occurs (to the extent that the
Option was exercisable by him or her on the date of the termination of his or
her service); and (C) in the event of the death of the Optionee, an Option
exercisable by him or her at the date of his or her death shall be exercisable
by his or her legal representative(s), legatee(s), or heir(s), or by his or her
beneficiary or beneficiaries so designated by him or her, as the case may be,
within six months after his or her death or before the expiration of the Option,
whichever first occurs (to the extent that the Option was exercisable by him or
her on the date of his or her death).</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'>
(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Optionees under the Plan who do
not otherwise have access to financial statements of the Company will receive
the Company&#146;s financial statements at least annually.</h3>

<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:0in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</h3>
<h3 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as permitted by rule 701 of
the Securities Act, Options granted under the Plan are nontransferable other
than by will, by the laws of descent and distribution, by instrument to an
inter vivos or testamentary trust in which the Options are to be passed to
beneficiaries upon the death of the trustor (settlor), or by gift to immediate
family. The term &#147;immediate family&#148; means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, and also includes
adoptive relationships.</h3>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:1.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;text-indent:1.5in;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-bottom:.0001pt;margin-left:0in; margin-right:0in; margin-top:0in'>-8-</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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

</h3>

</div>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>exhibit31-1.htm
<TEXT>
<html>

<head>
<title>EXHIBIT 31.1</title>
</head>

<body>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";'>
<b>EXHIBIT
31.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>
<b><u>CERTIFICATIONS</u></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">I, Mark Murphy, certify that:</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this Form 10-QSB of
Pro-Dex, Inc.;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this quarterly
report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report; </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial
statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this
report; </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The small business issuer&#146;s other
certifying officer(s) and I am responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f)) for the small business issuer and have :</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which this
report is being prepared;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal
control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report
any change in the registrant&#146;s internal control over financial reporting that
occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal
control over financial reporting; and</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons performing the
equivalent functions):</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all significant
deficiencies and material weaknesses in the design or operation of internal
controls over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report
financial information; and </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not
material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">Date: February 14, 2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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><u>/s/
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MARK MURPHY<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&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></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark
Murphy</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Executive Officer</font></p>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>exhibit31-2.htm
<TEXT>
<html>

<head>
<title>EXHIBIT 31.2</title>
</head>

<body>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";'>
<b>EXHIBIT
31.2&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>
<b><u>CERTIFICATIONS</u></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<b>&nbsp;</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">I, Jeffrey J. Ritchey,
certify that: </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this Form 10-QSB of
Pro-Dex, Inc.;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this quarterly
report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report; </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial
statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this
report; </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The small business issuer&#146;s other
certifying officer(s) and I am responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f)) for the small business issuer and have:</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which this
report is being prepared;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal
control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report
any change in the registrant&#146;s internal control over financial reporting that
occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s
internal control over financial reporting;&nbsp; and</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons performing the
equivalent functions):</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.5in'>
<font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all significant
deficiencies and material weaknesses in the design or operation of internal
controls over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report
financial information; and </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not
material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">Date: February 14, 2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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><u>/s/
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JEFFREY J. RITCHEY&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></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey
J. Ritchey</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>
<font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Financial Officer</font></p>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>8
<FILENAME>exhibit32.htm
<TEXT>
<html>

<head>
<title>EXHIBIT 32</title>
</head>

<body>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman"'>
<b>EXHIBIT 32</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:3.0in;margin-bottom:.0001pt;text-indent:-3.0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:3.0in;margin-bottom:.0001pt;text-align:center;
text-indent:-3.0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-top:0in;text-align:center'>
<b>CERTIFICATIONS
OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-top:0in;text-align:center'>
<b>PURSUANT
TO 18 U.S.C. SECTION 1350, <br>AS ADOPTED PURSUANT TO <br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-top:0in;text-align:center'>
<b>&nbsp;</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-top:0in;text-align:center'>
<b>Certifications
of Chief Executive Officer and Chief Financial Officer</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in;text-align:justify'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-family:"Times New Roman";margin-top:0in;text-align:justify'>In connection with the
quarterly report on Form 10-QSB of Pro-Dex Inc. (the &#147;Company&#148;) for the
quarterly period ended December 31, 2007 (the &#147;Report&#148;), the undersigned hereby
certify in their capacities as Chief Executive Officer and Chief Financial
Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, that:</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-family:"Times New Roman";text-align:justify'>1.&nbsp;&nbsp; The Report fully complies with
the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934, as amended; and</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-family:"Times New Roman";text-align:justify'>2.&nbsp;&nbsp; The information contained in the
Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Courier New";text-align:justify'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Dated:
February 14, 2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:<u>
/s/ &nbsp;&nbsp; MARK MURPHY&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark
Murphy</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Executive Officer and President<u><br></u></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Courier New";text-align:justify'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Dated:
February 14, 2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:<u>
/s/ &nbsp;&nbsp; JEFFREY J. RITCHEY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey
J. Ritchey</p>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Courier New";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>A signed original of this written statement required
by Section 906, or other document authenticating, acknowledging, or otherwise
adopting the signatures that appear in typed form within the electronic version
of this written statement required by Section 906, has been provided to the
Company and will be retained by the Company and Furnished to the Securities and
Exchange Commission or its staff upon request.</p>

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</DOCUMENT>
</SEC-DOCUMENT>
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