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Pro-Dex, Inc. Announces Fiscal Third Quarter And Nine-Month Results
Date:5/13/2013

Board Chairman CommentsNick Swenson, the Company's Chairman, commented, "The culmination of the proxy contest, which changed a majority of the board on January 22, 2013, led to the immediate reduction of board member compensation, the appointment of Hal Hurwitz in the dual role of CEO/CFO on February 25, 2013, and the implementation of a plan to make Pro-Dex better and stronger.

"While the former board chose to engage us in a proxy contest rather than to make changes we considered necessary for the good of Pro-Dex, and we believe that Pro-Dex's shareholders are better off with today's board, we very much regret the $177,000 that the then-incumbent board spent on the proxy contest. The shareholder-nominated slate won two votes for every one vote won by the former board.  We believe this result was obvious very early in the contest, yet spending by that former board did not slow.

"We believe that the recently announced promotion of Rick Van Kirk to Chief Operating Officer will result in the sensible application of productivity measurement disciplines (common in manufacturing) into other areas of the Pro-Dex cost structure. We are trying hard to increase the efficiency of the cost structure and lower the Company's working capital requirements.

"A key addition to the management team in March 2013 was Siddharth Desai, Vice President of Engineering.  Sid's leadership, energy and know-how have already begun a transition of our research and development efforts into a high-performance zone.

"The sale of the Carson City property is a priority for the Board, and we look forward to the anticipated completion of this transaction at a sales price above our carrying value for the property.

"Recently, the board formed a committee focused on capital allocation to create a framework that helps the Board determine the excess capital available to Pro-Dex, evaluate possible internal and external re-investment opportunities, and direct th
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