JMAR Awarded Contract to Upgrade Semiconductor Process at DMEA Installation in Sacramento; JMAR Contract with General Dynamics to Increase Productivity and Compatibility at the DMEA Production Facility

SAN DIEGO--(BUSINESS WIRE)--Oct. 3, 2005--JMAR Technologies, Inc. (Nasdaq: JMAR) has announced that its Microelectronics Division has been awarded a new contract totaling $603,000 to upgrade the semiconductor fabrication process installed at the Advanced Reconfigurable Manufacturing for Semiconductors (ARMS) foundry in Sacramento, California.

General Dynamics Advanced Information Systems (GDAIS), a prime contractor for the Defense Microelectronics Activity (DMEA), issued the contract to JMAR as an element of the Department of Defense's (DOD) Advanced Technology Support Program (ATSP). The contract, which is effective immediately, supplements JMAR's ongoing work for the DMEA and will last a total of six months. Under the terms of the contract, JMAR will transition the DMEA semiconductor fabrication process to six-inch silicon wafers from the present five-inch wafer process.

“This contract builds on JMAR's long-standing relationship with both GDAIS and the DMEA and underscores our role in sustaining and improving the ARMS foundry”

The DOD established the DMEA to solve the problem of microelectronics obsolescence over the extended lifetime of weapon systems. Its mission and capability is recognized as both unique and critical for the DOD as well as for other branches of the U.S. Government, including NASA, the FAA and the Department of Transportation. The one-of-a-kind ARMS facility, established in 1999, was created to produce specialized microelectronic devices, and since its inception, JMAR has played a key role in the installation and operation of that foundry's chip fabrication processes. Processes installed by JMAR at the ARMS facility include Complimentary Metal-oxide Semiconductor (CMOS) gate array, Electronically Erasable Programmable Read-only Memory (EEPROM), and radiation tolerant ultra-thin silicon technologies.

"This contract builds on JMAR's long-standing relationship with both GDAIS and the DMEA and underscores our role in sustaining and improving the ARMS foundry," commented Ronald A. Walrod, JMAR's President and Chief Executive Officer. "This transition to a larger wafer size will facilitate increased productivity and greater compatibility with semiconductor suppliers and vendors," continued Mr. Walrod.

About JMAR

JMAR Technologies, Inc. is a leading innovator in the development of laser-based equipment for imaging, analysis and fabrication at the nano-scale. The Company is leveraging over a decade of laser and photonics research to develop a diverse portfolio of products with commercial applications in rapidly growing industries while continuing to carry out research and development for the U.S. Defense Advanced Research Projects Agency (DARPA) and support for the U.S. Government's Defense Microelectronics Activity (DMEA) semiconductor fabrication facility. JMAR is targeting the nanotechnology, bioscience and semiconductor industries with its Britelight(TM) Laser; X-ray Light Source; Compact X-ray Microscope - for 3D visualization of single cells and polymers; and its X-ray Nano Probe - enabling interaction, analysis and materials modification at the nano-scale. JMAR also develops, manufactures and markets its BioSentry(TM) microorganism contamination warning system and maintains a strategic alliance for the production of the READ chemical sensor for homeland security, environmental and utility infrastructure industries.

This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. Actual results could differ materially from these forward-looking statements as a result of a number of factors, including the risk that the performance validation tests of the BioSentry Beta units are not successfully completed due to unforeseen issues with the installation and operation of the units outside of the controlled environment of JMAR's facility, delays in completion of the X-ray Microscope and X-ray Nano Probe prototypes and transition to production units, the failure of the technology to perform as predicted, competition from alternative technologies, uncertainties as to the size of the markets, cost and margins for JMAR's products, failure to obtain market acceptance, current or future government regulations affecting the use of JMAR's products, the lack of availability of critical components, the degree of protection from future patents, other risks associated with the development or acquisition of new products or technologies and those risks detailed in the Company's Form 10-Q for the quarter ended June 30, 2005 and its Form 8-K filed on March 30, 2005 with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved. JMAR Technologies, Inc. does not assume any duty to publicly update or revise the material contained herein.

Contacts

JMAR Technologies, Inc.
Dennis E. Valentine, 760-602-3292
www.jmar.com
or
The Investor Relations Group
Investors: Kathryn McNeil/Dian Griesel, Ph.D.
Media: Sally Martin/Dian Griesel, Ph.D.
212-825-3210

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