|JMAR THIRD QUARTER ACCOMPLISHMENTS:|
 During third quarter, successfully completed a test program. This month JMAR expects to
receive a purchase order for the first 2 of 17 production units conditionally ordered by the
customer. Vermont facility is ready to ramp up production into 2006.
 900,000 order from femtrotrace - for 3 advanced read sensor systems. for environmental
monitoring and security applications.
 Negotiated a sale of another brightlite laser system and expect an order from a
major national laboratory by year end.
 JMAR selected for a US ARMY grant for another brightlite application. This one for hazardous
materials in the field. Could lead to a new family of instruments. Applications such as
nuclear proliferation inspection.
 Received an additional 600k from General Dynamics (for a total of 1.9 million)
for defense microelectronics activities support. Expect an additional $2 million bookings for DMEA
support by yearend.
Versacam microscope completed beta testing at Univ of Vermont for life sciences.
Second beta unit with a semiconductor co. for quality assurance. This week being shown
to microscope dealers to get feedback on the instrument.
 Biosentry - laser based product, enbables realtime surveilance of micro-organisms.
Early warning systems. Can be used for water treatment, bottling plants, cruise ships,
battlefield water supplies, and numerous other applications. Also homeland security.
Likely revenues in 2006.
Market Potentials for biosentry
[a] Beverage production offers the potential of rapid
product acceptance. Beverage production especially in Latin America. Biosentry can
reduce lab testing of water for these applications. Can save the beverage makers a lot
of money and potential lawsuits.
A beverage producer in Mexico intends to put 1 biosentry unit in each of its 15 bottling
Total potential market for bottling plants - $275 million
Cruise Ships - Biosentry can add additional passenger protection of ship water supplies.
Must operate in engine room environments, with vibration, heat and humidity.
Beta unit going through shock, vibration and temperature tests this quarter.
Estimates are that 5 biosentry units are needed per ship. For drinking water, pools and spas
on the ship.
Available market $40-100 million. Hyde marine is the distributor.
[c] Utility Water - Realtime online surveilance. This will take longer than cruise ship
and bottling to test., but market much larger. Beta into mid 2006.
Available market: $3 billion
[d] Homeland Security - Early warning system protecting buildings, military facilities,
buildings, water distribution.
Available market: $2 billion
[e] Pharmaceutical Water - bacteria is the biggest problem. JMAR in early stages of discussion with
major pharmaceutical manufacturer for this application.
Available market: $80 million
[f] Semiconductor production - process water needs to be bacteria free. Can cause
carbon contamination on lithography masks and wafers.
[g] Portable water systems for battlefield and emergency situations.
[h] Food and Dairy production that uses water (potential market $600 million).
Many applications for Biosentry. Some near term (a and b) and some in the near future.
Substitute products not as attractive as biosentry.
More to come.....
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