To: Bucky Katt who wrote (9706 ) 11/27/2002 2:26:44 PM From: CusterInvestor Respond to of 48463 re:JMAR, I added today too. These lines from the release may have spoooked people, the parts about technical obstacles and engineering issues, followed by Martinez warning of orders being put out til 03. I am gratified by the patience and understanding shown by JMAR shareholders as we've worked to overcome the technical obstacles that are inherent in the development of this, or any other, leading-edge technology, and I'm confident that patience will be rewarded in the not-too-distant future," Walrod noted. "With that said, I'm sure those who have followed CPL's development will appreciate the fact that we will not try to compensate for the delays of the past by moving too quickly through CPL's pre-shipment source testing, which must be meticulous if we are to give this important technology, which has taken so long to develop, its best chance to succeed in the marketplace. As part of that discipline, we intend to complete the source's characterization and reliability testing in San Diego before shipping it to JSAL in Vermont for integration. "The rigorous testing now being conducted on the CPL source is essential in order to detect and remedy the engineering issues that inevitably surface when any complex, state-of-the-art system is worked up to full operational status," Walrod emphasized. "As part of that effort, and to facilitate the transition of the source from San Diego to Vermont, JSAL technical staff will soon come to JRI to participate in the source's operational reliability testing, to be trained on source operation and maintenance and to perform demonstrations of static lithography. I am confident that careful CPL source testing and the training of the JSAL team in San Diego will make the first integrated CPL stepper system demonstrations in Vermont all the more impressive and will save JMAR both time and money in the long run," said Walrod. Referring to JMAR's Precision Systems division, Mr. Joseph G. Martinez, acting president of JPSI said, "Unfortunately, despite the acceptance of our precision products by the semiconductor and other industries, we do not believe we have yet seen the bottom of the downturn in our precision equipment business. Although our motion and metrology products compete well at the high end of the market, many of our customers are delaying their equipment purchases out into 2003. We cannot predict when the semiconductor and other technology industries will rebound, but when it does we will be ready to react with a competitive product line that should generate attractive gross margins. In the meantime, we have responded with aggressive cost reductions that have substantially reduced JPSI's use of cash and its operating losses. At the same time, we are expanding our sales activity using both direct sales staff and manufacturer's representatives in the U.S. and internationally, and we are also looking outside the semiconductor industry for new markets for our metrology products."