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<B><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</P>
</B><P ALIGN="CENTER">__________________</P>
<U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</U><B><P ALIGN="CENTER">FORM 8-K</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE <BR>
SECURITIES AND EXCHANGE ACT OF 1934 (NO FEE REQUIRED)</P>
<P ALIGN="CENTER">Date of Report: July 30, 2001</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<U><P ALIGN="CENTER">PRO-DEX, INC. <BR>
</U>(Exact Name of Registrant as Specified in its Charter)</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Commission File Number 0-14942</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=650>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P ALIGN="CENTER"><U>Colorado</U></TD>
<TD WIDTH="31%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="31%" VALIGN="TOP">
<U><P ALIGN="CENTER">84-1261240</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P ALIGN="CENTER">(State or other Jurisdiction of&#9;</TD>
<TD WIDTH="31%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="31%" VALIGN="TOP">
<P ALIGN="CENTER">(I.R.S. Employer</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P ALIGN="CENTER">Incorporation or Organization)</TD>
<TD WIDTH="31%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="31%" VALIGN="TOP">
<P ALIGN="CENTER">Identification Number)</TD>
</TR>
</TABLE>

<U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">650 S. Taylor Ave., Suite 20-A, Louisville, CO 80027<BR>
</U>(Address Of Principal Executive Offices, Including Zip Code)</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Registrant's Telephone Number, Including Area Code: (303) 443-6136</P>
<P ALIGN="CENTER">&nbsp;</P>
<hr size="3" color="#000080">
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">INFORMATION TO BE INCLUDED IN THE REPORT</P>
<P ALIGN="left">ITEM 1. <U>Changes in the Control of Registrant.</U> None. </P>
<P>ITEM 2. <U>Acquisition or Disposition of Assets. </U>On June 12, 2001, registrant sold substantially all of the assets of its indirect wholly-owned subsidiaries, Biotrol, Inc. and Challenge Products, Inc. to Young Colorado, LLC, a newly formed subsidiary of Young Innovations, Inc., for a purchase price of $9,000,000 in cash. Payment of the purchase price was subject to cash holdbacks totaling $2,400,000, which was escrowed to secure the performance of various warranties under the sale agreement. The assets sold comprised registrant's line of infection control and preventive chemical products.</P>
<P>ITEM 3. <U>Bankruptcy or Receivership</U>. None. </P>
<P>ITEM 4. <U>Changes in Registrant's Certifying Registered Accountant</U>. None. </P>
<P>ITEM 5. <U>Other Events</U>. None.</P>
<P>ITEM 6. <U>Resignation of Registrant's Directors</U>. None.</P>
<P>ITEM 7. <U>Financial Statements and Exhibits.</U> Unaudited Pro Forma Consolidated Balance Sheet for March 31, 2001. Unaudited Pro Forma Consolidated Income Statements for the nine-months ended March 31, 2001 and 2000, Unaudited Pro Forma Consolidated Income Statements for the years ending June 30, 2000, and June 30, 1999.</P>
<P>ITEM 8. <U>Changes in Fiscal Year.</U> None.</P>
<U><P>ITEM 9. Regulation FD Disclosure. None. </P>
</U><P>&nbsp;</P>
<P>&nbsp;</P>
<P>Exhibit 99-1 &#9;Asset purchase agreement.</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<hr size="3" color="#000080">
<P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="CENTER">SIGNATURES</P>
<P ALIGN="CENTER">&nbsp;</P>
<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=650>
<TR><TD WIDTH="622" VALIGN="TOP" colspan="4">
<P align="center">PRO-DEX, INC. </TD>
</TR>
<TR><TD WIDTH="104" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="316" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="93" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="104" VALIGN="TOP">
<P>July 30, 2001</TD>
<TD WIDTH="61" VALIGN="TOP">
<P></TD>
<TD WIDTH="316" VALIGN="TOP"><u>&nbsp;/s/ George J.
     Isaac&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
<TD WIDTH="93" VALIGN="TOP">
     </TD>
</TR>
<TR><TD WIDTH="104" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="61" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="316" VALIGN="TOP">
<P>George J. Isaac </TD>
<TD WIDTH="93" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="104" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="316" VALIGN="TOP">Chief Financial Officer</TD>
<TD WIDTH="93" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2></FONT>
<p>&nbsp;</p>
<hr align="left" color="#000080">
<p>&nbsp;</p>
<p><font face="Times New Roman" size="3">The unaudited pro-forma consolidated
income statements for the years ended June 30, 2000, and 1999, and the nine
months ended March 31, 2001, and 2000, and the unaudited pro forma balance sheet
as of March 31, 2001 have been prepared to illustrate the sale of two
subsidiaries, Biotrol, Inc., and Challenge Products, Inc. The pro forma
consolidated income statements give effect to the transaction as if it occurred
on July 1, 1998, and the pro forma consolidated balance sheet gives effect to
the transaction as if it occurred on March 31, 2001. These pro forma
consolidated financial statements do not purport to be indicative of the results
of operations or financial position of the Registrant that would have actually
been obtained had this transaction been completed as of the assumed dates, and
for the periods presented, or which may be obtained in the future. The pro forma
adjustments are described in the accompanying notes and are based upon available
information and certain assumptions that the Registrant believes are reasonable.
The pro forma financial statements should be read in conjunction with the
historical consolidated financial statements of the Registrant, and the notes
thereto. The gain on the sale of the subsidiaries has not been presented in the
pro forma income statements. The amount of the gain is estimated to be $6.7
million, less a tax affect of $2.5 million, resulting in a net gain of $4.2
million. The estimated gain, net of tax, is reflected in the pro forma
consolidated balance sheet as of March 31, 2001. The actual gain may be
significantly different, and is subject to change.</font></p>
<p>&nbsp;</p>
<table border="0" width="734">
     <tr VALIGN="bottom">
          <td ALIGN="right" width="726" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Dex,
               Inc.</font></b></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="726" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Unaudited
               Pro-Forma Balance Sheet</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="726" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">March
               31, 2001</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center" STYLE="vnd.ms-excel.numberformat: d-mmm-yy" width="117"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center" width="117"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="center" width="104"><b><font face="Times New Roman" size="2">Disposition</font></b></td>
          <td ALIGN="center" width="115"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
          <td ALIGN="center" width="101"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center" width="117"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="center" width="104"><b><font face="Times New Roman" size="2">of</font></b></td>
          <td ALIGN="center" width="115"><b><font face="Times New Roman" size="2">Adjustment</font></b></td>
          <td ALIGN="center" width="101"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center" width="117"><b><font face="Times New Roman" size="2">Historical</font></b></td>
          <td ALIGN="center" width="104"><b><font face="Times New Roman" size="2">Business(a)</font></b></td>
          <td ALIGN="center" width="115"><b><font face="Times New Roman" size="2">(b)</font></b></td>
          <td ALIGN="center" width="101"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" colspan="4" width="455">
               <p align="right">_______________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Current
               Assets</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="117"><font face="Times New Roman" size="2">$9,053</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="104"><font face="Times New Roman" size="2">$2,133</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="115"><font face="Times New Roman" size="2">$2,400</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">$9,320</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Property
               &amp; Equipment</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">2,360</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">465</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">1,895</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Other
               Assets</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">3,130</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">38</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">3,092</font></td>
     </tr>
     <tr>
          <td ALIGN="left" width="265"></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" colspan="4" width="455">
               <p align="right">_______________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Total
               Assets</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="117"><font face="Times New Roman" size="2">$14,543</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="104"><font face="Times New Roman" size="2">$2,636</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="115"><font face="Times New Roman" size="2">$2,400</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">$14,307</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="455">=================================================</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Current
               Liabilities</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="117"><font face="Times New Roman" size="2">$8,489</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="104"><font face="Times New Roman" size="2">$937</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="115"><font face="Times New Roman" size="2">($3,504)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">$4,048</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Long-Term
               Debt</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">0</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">0</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">0</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Shareholders'
               Equity</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">6,054</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="104"><font face="Times New Roman" size="2">1,699</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="115"><font face="Times New Roman" size="2">5,904</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">10,259</font></td>
     </tr>
     <tr>
          <td ALIGN="left" width="265"></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" colspan="4" width="455">
               <p align="right">_______________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">Total
               Liabilities &amp; Shareholders' Equity</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="117"><font face="Times New Roman" size="2">$14,543</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="104"><font face="Times New Roman" size="2">$2,636</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="115"><font face="Times New Roman" size="2">$2,400</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">$14,307</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="455">=================================================</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" colspan="5" width="726"><font face="Times New Roman" size="2">(a)
               - Represents disposition of assets and liabilities of Biotrol
               &amp; Challenge</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" colspan="5" width="726"><font face="Times New Roman" size="2">(b)
               - Represents the proceeds from the sale of Biotrol &amp;
               Challenge after provisions for income taxes, and payoff of the
               Company's bank debt.</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"></td>
          <td ALIGN="right" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Net proceeds from sale</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon][Red]($#, ##0)" width="117"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;
               8,400</font></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Less: Income tax on gain</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">(2,496)</font></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">_______</font></td>
          <td ALIGN="right" width="104"></td>
          <td ALIGN="right" width="115"></td>
          <td ALIGN="left" width="101"></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" width="265"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Net proceeds from sale</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117"><font face="Times New Roman" size="2">5,904</font></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="left" width="101"></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="left" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="117">
               <p align="right">=====</td>
          <td ALIGN="left" width="104"></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" width="265"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="117"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="104"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="115"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
</table>
<p>&nbsp;</p>
<hr align="left" color="#000080">
<p>&nbsp;</p>
<table border="0">
     <tr VALIGN="bottom">
          <td ALIGN="right" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Dex,
               Inc.</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Unaudited
               Pro-Forma Income Statement</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Nine
               Months Ended March 31, 2001</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Disposition</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">of</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Adjustment</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Historical</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Business(a)</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">(b)</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Net Sales</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$19,025</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0"><font face="Times New Roman" size="2">$7,044</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$11,981</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Cost of Sales</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">9,109</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">3,375</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">5,734</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Gross Profit</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">9,916</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">3,669</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">6,247</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Operating
               Expenses</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">9,075</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">3,395</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">5,680</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Income from
               Operations</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">840</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">274</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">566</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Other expenses,
               primarily interest</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(666)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(88)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">505</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(73)</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Income before
               taxes</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">174</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">186</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">505</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">493</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Income taxes</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(70)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(74)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(202)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(198)</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Net income
               (loss)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$104</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$112</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$303</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$295</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" colspan="4" width="458">==================================================</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" colspan="5"><font face="Times New Roman" size="2">(a)
               - Represents the disposition of the Biotrol and Challenge
               subsidiaries</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" colspan="5"><font face="Times New Roman" size="2">(b)
               - Represents the elimination of interest paid on a bank loan paid
               off with proceeds from sale of &nbsp;Biotrol and Challenge.</font></td>
     </tr>
</table>
<p>&nbsp;</p>
<hr align="left" color="#000080">
<p>&nbsp;</p>
<table border="0">
     <tr VALIGN="bottom">
          <td ALIGN="right" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Dex,
               Inc.</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Unaudited
               Pro-Forma Income Statement</font></b></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right" colspan="5">
               <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Nine
               Months Ended March 31, 2000</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
          </td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Disposition</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">of</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Adjustment</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Historical</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Business(a)</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">(b)</font></b></td>
          <td ALIGN="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Net Sales</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$19,038</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0"><font face="Times New Roman" size="2">$7,519</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$11,519</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Cost of Sales</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">8,673</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">3,276</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">5,397</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Gross Profit</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">10,365</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">4,243</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">6,122</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Operating
               Expenses</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">7,688</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">2,872</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">4,816</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Income from
               Operations</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">2,677</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">1,371</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">1,306</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Other expenses,
               primarily interest</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(800)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(74)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">625</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(101)</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Income before
               taxes</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">1,877</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">1,297</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">625</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">1,205</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Income taxes</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(761)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(519)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(250)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(492)</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left"><font face="Times New Roman" size="2">Net income
               (loss)</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$1,116</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$778</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$375</font></td>
          <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$713</font></td>
     </tr>
     <tr>
          <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right" colspan="4" width="458">==================================================</td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" colspan="5"><font face="Times New Roman" size="2">(a)
               - Represents the disposition of the Biotrol and Challenge
               subsidiaries&nbsp;</font></td>
     </tr>
     <tr VALIGN="bottom">
          <td ALIGN="left" colspan="5"><font face="Times New Roman" size="2">(b)
               - Represents the elimination of interest paid on a bank loan paid
               off with proceeds from sale of Biotrol and Challenge.</font></td>
     </tr>
</table>
<p>&nbsp;</p>
<hr align="left" color="#000080">
<p>&nbsp;</p>
<div align="left">
     <table border="0" width="695">
          <tr VALIGN="bottom">
               <td ALIGN="right" colspan="5" width="640">
                    <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Dex,
                    Inc.</font></b></p>
               </td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" colspan="5" width="640">
                    <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Forma
                    Income Statement</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
               </td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" colspan="5" width="640">
                    <p align="center"><b><font face="Times New Roman" size="2">Year
                    Ended June 30, 2000</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
               </td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="102"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
               <td ALIGN="center" width="123"><b><font face="Times New Roman" size="2">Disposition</font></b></td>
               <td ALIGN="center" width="114"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
               <td ALIGN="right" width="101"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="102"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
               <td ALIGN="center" width="123"><b><font face="Times New Roman" size="2">of</font></b></td>
               <td ALIGN="center" width="114"><b><font face="Times New Roman" size="2">Adjustment</font></b></td>
               <td ALIGN="right" width="101"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="left" width="102">
                    <p align="center"><b><font face="Times New Roman" size="2">Historical</font></b></p>
               </td>
               <td ALIGN="center" width="123"><b><font face="Times New Roman" size="2">Business
                    (a)</font></b></td>
               <td ALIGN="center" width="114"><b><font face="Times New Roman" size="2">(b)</font></b></td>
               <td ALIGN="left" width="101">
                    <p align="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></p>
               </td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Net
                    Sales</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="102"><font face="Times New Roman" size="2">$26,670</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0" width="123"><font face="Times New Roman" size="2">$10,573</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">$16,097</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Cost
                    of Sales</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">12,125</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">4,519</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">7,606</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Gross
                    Profit</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">14,545</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">6,054</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">8,491</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Operating
                    Expenses</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">10,815</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">3,997</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">6,818</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Income
                    from Operations</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">3,730</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">2,057</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">1,673</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Other
                    expenses, primarily interest</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">(1,131)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="123"><font face="Times New Roman" size="2">(105)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="114"><font face="Times New Roman" size="2">(846)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">(180)</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Income
                    before taxes</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">2,599</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">1,952</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="114"><font face="Times New Roman" size="2">846</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">1,493</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Income
                    taxes</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="102"><font face="Times New Roman" size="2">(1,058)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="123"><font face="Times New Roman" size="2">(781)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="114"><font face="Times New Roman" size="2">(338)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" width="101"><font face="Times New Roman" size="2">(615)</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" width="223"><font face="Times New Roman" size="2">Net
                    income (loss)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="102"><font face="Times New Roman" size="2">$1,541</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="123"><font face="Times New Roman" size="2">$1,171</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="114"><font face="Times New Roman" size="2">$508</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: $#, ##0_)[semicolon]($#, ##0)" width="101"><font face="Times New Roman" size="2">$878</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" colspan="4" width="458">==================================================</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="102"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="123"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="114"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" width="101"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" colspan="5" width="640"><font face="Times New Roman" size="2">(a)
                    - Represents the disposition of the Biotrol and Challenge
                    subsidiaries&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" colspan="5" width="640"><font face="Times New Roman" size="2">(b)
                    - Represents the elimination of interest paid on a bank loan
                    paid off with proceeds from sale of Biotrol and Challenge.</font></td>
          </tr>
     </table>
</div>
&nbsp;
<hr align="left" color="#000080">
<p>&nbsp;</p>
<div align="left">
     <table border="0">
          <tr VALIGN="bottom">
               <td ALIGN="right" colspan="5">
                    <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Dex,
                    Inc.</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
               </td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" colspan="5">
                    <p align="center"><font face="Times New Roman" size="2">&nbsp;</font><b><font face="Times New Roman" size="2">Pro-Forma
                    Income Statement</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
               </td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right" colspan="5">
                    <p align="center"><b><font face="Times New Roman" size="2">Year
                    Ended June 30, 1999</font></b><font face="Times New Roman" size="2">&nbsp;</font></p>
               </td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">Disposition</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">of</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">Adjustment</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">Historical</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">Business(a)</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">(b)</font></b></td>
               <td ALIGN="center"><b><font face="Times New Roman" size="2">Pro-forma</font></b></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Net Sales</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$18,342</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$9,535</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$8,807</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Cost of
                    Sales</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">9,763</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">4,770</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">4,993</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Gross
                    Profit</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">8,579</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">4,765</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">3,814</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Operating
                    Expenses</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">18,833</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">4,660</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">14,173</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">(Loss)
                    from Operations</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(10,254)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">105</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(10,359)</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Other
                    expenses, primarily interest</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(971)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(110)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(746)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(115)</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">(Loss)
                    before tax credits</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(11,225)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(5)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">746</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(10,474)</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Income tax
                    credits</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">2,291</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(2)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">(298)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">1,995</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat: #, ##0_)[semicolon](#, ##0)" colspan="4" width="458">_________________________________________________________</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left"><font face="Times New Roman" size="2">Net (loss)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">($8,934)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">($3)</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">$448</font></td>
               <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><font face="Times New Roman" size="2">($8,483)</font></td>
          </tr>
          <tr>
               <td ALIGN="right" width="223"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right" colspan="4" width="458">==================================================</td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
               <td ALIGN="right"><font face="Times New Roman" size="2">&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" colspan="5"><font face="Times New Roman" size="2">(a)
                    - Represents the disposition of the Biotrol and Challenge
                    subsidiaries&nbsp;</font></td>
          </tr>
          <tr VALIGN="bottom">
               <td ALIGN="left" colspan="5"><font face="Times New Roman" size="2">(b)
                    - Represents the elimination of interest paid on a bank loan
                    paid off with proceeds from sale of</font> <font face="Times New Roman" size="2">&nbsp;Biotrol
                    and Challenge.</font></td>
          </tr>
     </table>
</div>
<p>&nbsp;</p>
</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "pdex8k.htm", "description": "HTML 8K", "secsgml_size_bytes": 99565}]
{"company-data": {"conformed-name": "PRO DEX INC", "cik": "0000788920", "assigned-sic": "5047", "irs-number": "841261240", "state-of-incorporation": "CO", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-14942", "film-number": "1692786"}, "business-address": {"street1": "650 S. TAYKOR AVENUE", "street2": "SUITE 20-A", "city": "LOUISVILLE", "state": "CO", "zip": "80027", "phone": "3034438165"}, "mail-address": {"street1": "1401 WALNUT STREET", "street2": "SUITE 540", "city": "BOULDER", "state": "CO", "zip": "80302"}}
Prepared by E-Services, LLC - www.edgar2.net
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
Date of Report: July 30, 2001
PRO-DEX, INC.
(Exact Name of Registrant as Specified in its Charter)
Commission File Number 0-14942
Colorado
84-1261240
(State or other Jurisdiction of
(I.R.S. Employer
Incorporation or Organization)
Identification Number)
650 S. Taylor Ave., Suite 20-A, Louisville, CO 80027
(Address Of Principal Executive Offices, Including Zip Code)
Registrant's Telephone Number, Including Area Code: (303) 443-6136
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 1.
Changes in the Control of Registrant.
None.
ITEM 2.
Acquisition or Disposition of Assets.
On June 12, 2001, registrant sold substantially all of the assets of its indirect wholly-owned subsidiaries, Biotrol, Inc. and Challenge Products, Inc. to Young Colorado, LLC, a newly formed subsidiary of Young Innovations, Inc., for a purchase price of $9,000,000 in cash. Payment of the purchase price was subject to cash holdbacks totaling $2,400,000, which was escrowed to secure the performance of various warranties under the sale agreement. The assets sold comprised registrant's line of infection control and preventive chemical products.
ITEM 3.
Bankruptcy or Receivership
. None.
ITEM 4.
Changes in Registrant's Certifying Registered Accountant
. None.
ITEM 5.
Other Events
. None.
ITEM 6.
Resignation of Registrant's Directors
. None.
ITEM 7.
Financial Statements and Exhibits.
Unaudited Pro Forma Consolidated Balance Sheet for March 31, 2001. Unaudited Pro Forma Consolidated Income Statements for the nine-months ended March 31, 2001 and 2000, Unaudited Pro Forma Consolidated Income Statements for the years ending June 30, 2000, and June 30, 1999.
ITEM 8.
Changes in Fiscal Year.
None.
ITEM 9. Regulation FD Disclosure. None.
Exhibit 99-1 	Asset purchase agreement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PRO-DEX, INC.
July 30, 2001
/s/ George J.
     Isaac
George J. Isaac
Chief Financial Officer
The unaudited pro-forma consolidated
income statements for the years ended June 30, 2000, and 1999, and the nine
months ended March 31, 2001, and 2000, and the unaudited pro forma balance sheet
as of March 31, 2001 have been prepared to illustrate the sale of two
subsidiaries, Biotrol, Inc., and Challenge Products, Inc. The pro forma
consolidated income statements give effect to the transaction as if it occurred
on July 1, 1998, and the pro forma consolidated balance sheet gives effect to
the transaction as if it occurred on March 31, 2001. These pro forma
consolidated financial statements do not purport to be indicative of the results
of operations or financial position of the Registrant that would have actually
been obtained had this transaction been completed as of the assumed dates, and
for the periods presented, or which may be obtained in the future. The pro forma
adjustments are described in the accompanying notes and are based upon available
information and certain assumptions that the Registrant believes are reasonable.
The pro forma financial statements should be read in conjunction with the
historical consolidated financial statements of the Registrant, and the notes
thereto. The gain on the sale of the subsidiaries has not been presented in the
pro forma income statements. The amount of the gain is estimated to be $6.7
million, less a tax affect of $2.5 million, resulting in a net gain of $4.2
million. The estimated gain, net of tax, is reflected in the pro forma
consolidated balance sheet as of March 31, 2001. The actual gain may be
significantly different, and is subject to change.
Pro-Dex,
               Inc.
Unaudited
               Pro-Forma Balance Sheet
March
               31, 2001
Disposition
Pro-forma
of
Adjustment
Historical
Business(a)
(b)
Pro-forma
_______________________________________________________
Current
               Assets
$9,053
$2,133
$2,400
$9,320
Property
               & Equipment
2,360
465
1,895
Other
               Assets
3,130
38
3,092
_______________________________________________________
Total
               Assets
$14,543
$2,636
$2,400
$14,307
=================================================
Current
               Liabilities
$8,489
$937
($3,504)
$4,048
Long-Term
               Debt
0
0
0
Shareholders'
               Equity
6,054
1,699
5,904
10,259
_______________________________________________________
Total
               Liabilities & Shareholders' Equity
$14,543
$2,636
$2,400
$14,307
=================================================
(a)
               - Represents disposition of assets and liabilities of Biotrol
               & Challenge
(b)
               - Represents the proceeds from the sale of Biotrol &
               Challenge after provisions for income taxes, and payoff of the
               Company's bank debt.
Net proceeds from sale
$    
               8,400
Less: Income tax on gain
(2,496)
_______
Net proceeds from sale
5,904
=====
Pro-Dex,
               Inc.
Unaudited
               Pro-Forma Income Statement
Nine
               Months Ended March 31, 2001
Disposition
Pro-forma
of
Adjustment
Historical
Business(a)
(b)
Pro-forma
_________________________________________________________
Net Sales
$19,025
$7,044
$11,981
Cost of Sales
9,109
3,375
5,734
_________________________________________________________
Gross Profit
9,916
3,669
6,247
Operating
               Expenses
9,075
3,395
5,680
_________________________________________________________
Income from
               Operations
840
274
566
Other expenses,
               primarily interest
(666)
(88)
505
(73)
_________________________________________________________
Income before
               taxes
174
186
505
493
Income taxes
(70)
(74)
(202)
(198)
_________________________________________________________
Net income
               (loss)
$104
$112
$303
$295
==================================================
(a)
               - Represents the disposition of the Biotrol and Challenge
               subsidiaries
(b)
               - Represents the elimination of interest paid on a bank loan paid
               off with proceeds from sale of  Biotrol and Challenge.
Pro-Dex,
               Inc.
Unaudited
               Pro-Forma Income Statement
Nine
               Months Ended March 31, 2000
Disposition
Pro-forma
of
Adjustment
Historical
Business(a)
(b)
Pro-forma
_________________________________________________________
Net Sales
$19,038
$7,519
$11,519
Cost of Sales
8,673
3,276
5,397
_________________________________________________________
Gross Profit
10,365
4,243
6,122
Operating
               Expenses
7,688
2,872
4,816
_________________________________________________________
Income from
               Operations
2,677
1,371
1,306
Other expenses,
               primarily interest
(800)
(74)
625
(101)
_________________________________________________________
Income before
               taxes
1,877
1,297
625
1,205
Income taxes
(761)
(519)
(250)
(492)
_________________________________________________________
Net income
               (loss)
$1,116
$778
$375
$713
==================================================
(a)
               - Represents the disposition of the Biotrol and Challenge
               subsidiaries
(b)
               - Represents the elimination of interest paid on a bank loan paid
               off with proceeds from sale of Biotrol and Challenge.
Pro-Dex,
                    Inc.
Pro-Forma
                    Income Statement
Year
                    Ended June 30, 2000
Disposition
Pro-forma
of
Adjustment
Historical
Business
                    (a)
(b)
Pro-forma
_________________________________________________________
Net
                    Sales
$26,670
$10,573
$16,097
Cost
                    of Sales
12,125
4,519
7,606
_________________________________________________________
Gross
                    Profit
14,545
6,054
8,491
Operating
                    Expenses
10,815
3,997
6,818
_________________________________________________________
Income
                    from Operations
3,730
2,057
1,673
Other
                    expenses, primarily interest
(1,131)
(105)
(846)
(180)
_________________________________________________________
Income
                    before taxes
2,599
1,952
846
1,493
Income
                    taxes
(1,058)
(781)
(338)
(615)
_________________________________________________________
Net
                    income (loss)
$1,541
$1,171
$508
$878
==================================================
(a)
                    - Represents the disposition of the Biotrol and Challenge
                    subsidiaries
(b)
                    - Represents the elimination of interest paid on a bank loan
                    paid off with proceeds from sale of Biotrol and Challenge.
Pro-Dex,
                    Inc.
Pro-Forma
                    Income Statement
Year
                    Ended June 30, 1999
Disposition
Pro-forma
of
Adjustment
Historical
Business(a)
(b)
Pro-forma
_________________________________________________________
Net Sales
$18,342
$9,535
$8,807
Cost of
                    Sales
9,763
4,770
4,993
_________________________________________________________
Gross
                    Profit
8,579
4,765
3,814
Operating
                    Expenses
18,833
4,660
14,173
_________________________________________________________
(Loss)
                    from Operations
(10,254)
105
(10,359)
Other
                    expenses, primarily interest
(971)
(110)
(746)
(115)
_________________________________________________________
(Loss)
                    before tax credits
(11,225)
(5)
746
(10,474)
Income tax
                    credits
2,291
(2)
(298)
1,995
_________________________________________________________
Net (loss)
($8,934)
($3)
$448
($8,483)
==================================================
(a)
                    - Represents the disposition of the Biotrol and Challenge
                    subsidiaries
(b)
                    - Represents the elimination of interest paid on a bank loan
                    paid off with proceeds from sale of
Biotrol
                    and Challenge.