Pro-Dex, Inc. Total Backlog Totals Nearly $6.2 Million at July 31

BEAVERTON, Ore., Aug 12, 2003 (BUSINESS WIRE) -- Pro-Dex, Inc. (Nasdaq:PDEX) today announced that its wholly owned subsidiary, Oregon Micro Systems, Inc., a leading multi-axis motion controller manufacturer, signed a one-year supply agreement with a major semiconductor equipment manufacturer. Under the terms of the agreement, Oregon Micro Systems will provide the customer and their Tier I manufacturers, a multi-axis, bus based, motion controller designed and developed by Oregon Micro Systems exclusively for this customer. The agreement provides for the delivery of 300 motion controllers with initial shipments beginning in August 2003. The agreement runs from July 2003 to June 2004 and will generate $500,000 in revenue.

Commenting on the agreement, Gary Garleb, President of Oregon Micro Systems (OMS) said, "We are very excited having signed this agreement. It represents a significant indication that semiconductor equipment manufacturers are recovering from one of the deepest and longest cyclical decline in industry history. This agreement is the largest purchase commitment we have received from this or any other customer in nearly four years. Combined with the general strengthening of new order bookings, this agreement pushes our backlog over $1,000,000 for the first time in two and a half years."

Strong new sales bookings are also a trend that Pro-Dex's other subsidiary, Micro Motors, Inc., has been experiencing recently. During the month of July, Micro Motors booked an additional $1,432,000 in new orders. A large portion of these new orders came from Curozone, USA, which placed orders for additional Healozone devices and accessories to support those devices. As with previous orders for the Healozone device, both Pro-Dex's subsidiaries will be involved in their production. Micro Motors will complete a substantial part of the component manufacturing in its Santa Ana based facility and OMS will complete the electro-mechanical assembly of the product in its Beaverton facilities.

Remarking on the recent activity, Patrick Johnson, CEO & President of Pro-Dex, Inc. said, "We're very pleased with the trends we are seeing at both OMS and Micro Motors and we are encouraged that the two subsidiaries are finding projects to work on together, making the best and highest use of all our company resources. Given the strong booking we have seen from both of our subsidiaries, we closed the month of July with nearly $6,200,000 in backlog, practically all of it scheduled to ship in fiscal 2004. This is a great way to start out a new fiscal year, where we will be looking for continued increases in top line sales and bottom line profits."

Pro-Dex Inc., is a California-based holding company with the following wholly-owned operating subsidiaries: Oregon Micro Systems, Inc., located in Beaverton, Oregon, designs, develops and manufactures multi-axis motion controllers for OEM capital equipment manufacturers and Government research facilities; and Micro Motors, Inc., located in Santa Ana, manufactures miniature electric, pneumatic and battery powered rotary drive systems for use in the high tech medical, dental and industrial industries.

For more information, visit the Company's website at www.pro-dex.com.

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

SOURCE: Pro-Dex, Inc.

Oregon Micro Systems, Inc.
Gary Garleb, 503-629-8081
or
Pro-Dex, Inc.
Patrick Johnson, 714-241-4411
or
Kehoe, White & Co., Inc.
Jim White, 562-437-0655 (Investor Relations)

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