JMAR Awarded $3.5 Million in Contracts to Enhance Semiconductor Process at DMEA Installation in Sacramento.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 4, 2004

JMAR Technologies, Inc. (Nasdaq:JMAR), announced today that its Microelectronics Division has been awarded two new contracts totaling approximately $3.5 million to enhance and maintain the semiconductor fabrication processes installed at the Advanced Reconfigurable Manufacturing for Semiconductors (ARMS) foundry owned and operated by the Defense Microelectronics Activity (DMEA) in Sacramento, California. General Dynamics Advanced Information Systems (GDAIS), a prime contractor for DMEA, issued these contracts to JMAR as an element of the DOD's Advanced Technology Support Program (ATSP). Since the establishment of the ARMS foundry in 1999, JMAR has played a key role in the installation and implementation of that foundry's chip fabrication processes, which include Complementary Metal-oxide Semiconductor (CMOS) gate array, Electronically Erasable Programmable Read-only Memory (EEPROM), and radiation tolerant ultra-thin silicon technologies.

"The contract, two-thirds of which will be performed in 2004, continues JMAR's long-standing relationships with GDAIS and the DMEA and underscores the Company's unique role in sustaining and improving the ARMS foundry, which is an important part of the DMEA operations," said Mr. Ronald A. Walrod, President and Chief Executive Officer of JMAR. "We believe JMAR's Microelectronics Division's business will continue to grow as we support the DMEA and their mission continues to expand."

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.

DMEA's advanced technology services and facilities are also available on a dual-use basis to the private sector through Cooperative Research and Development Agreements (CRADA). The JMAR CRADA and the Company's access to the foundry position JMAR to enhance the ARMS foundry processes and to use those processes for commercial product manufacturing.

Under a contract awarded by General Dynamics in 1998, JMAR supported the DMEA in the design, construction and commissioning of the ARMS foundry upgrade. The foundry is a custom integrated circuit prototyping facility responsible for producing critical innovative microcircuits to replace obsolete military system electronics, thereby extending the operational lifetimes of those systems for substantial periods with attendant savings to the U.S. Government. JMAR maintains a semiconductor process engineering and operations group adjacent to DMEA's facility in Sacramento. JMAR's Sacramento staff will perform the work under the current contract on-site.

Mr. Walrod commented, "We believe our semiconductor processing group is unique in its ability to provide the DMEA with the highly specialized, long-term support it needs for the evaluation, selection, installation and implementation of these new semiconductor manufacturing processes. That support, which JMAR has been providing to the DMEA since the inception of the Sacramento foundry, has been instrumental in helping that organization fulfill its increasingly vital role in the nation's defense." Mr. Walrod continued, "We are very confident that the DMEA's success will bring with it expanded opportunities for JMAR, while at the same time increasing the value of the essential services it provides."

Headquartered in San Diego, California, JMAR Technologies, Inc., is the originator of Collimated Plasma Lithography (CPL(TM)), a next-generation lithography (NGL) alternative designed to deliver affordable, sub-100 nanometer chip-making capability in a compact format to the semiconductor industry. In addition to CPL, JMAR develops other products for the public and private sectors based on its proprietary "Britelight(TM)" laser light source. JMAR's operations include its laser and laser-produced plasma Research Division in San Diego, California; its Systems Division in Burlington, Vermont, where CPL stepper systems and other products are designed and manufactured; and its Microelectronics Division, based in Sacramento, California, where JMAR provides process integration and maintenance support for the U.S. Government's Defense Microelectronics Activity semiconductor fabrication facility.

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 cancellation of government programs, delays in receipt of funding of government contracts, reductions in the expected amounts of government contract funding, delays and other unforeseen issues involved in the procurement of supplies, equipment and semiconductor fabrication processes required under the contracts and other risks detailed in the Company's 2002 Form 10-K and Form 8-K filed with the SEC on November 20, 2003. 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.