U.S. Defense Department Grants JMAR $3.5 Million Funding for Continued Development of Soft X-Ray Source.

SAN DIEGO -- The U.S. Department of Defense has awarded the Research Division of JMAR Technologies, Inc. (Nasdaq: JMAR) $3.5 million in funding under its previously announced $34.5 million Department of Defense Contract to continue development of a compact soft X-ray light source for applications that would otherwise require access to a synchrotron facility.

The funding will be used to make the compact X-ray source sufficiently robust for continuous operation and to advance its performance, reliability and maintainability.

"Enhancements such as improving laser produced plasma (LPP) source laser-to-X-ray conversion efficiency, refining the debris management approach, and completing development and testing of an improved LPP target delivery subsystem, will ultimately make this technology more readily usable by the Department of Defense and other potential customers," said Dr. Scott Bloom, General Manager of JMAR's Research Division.

JMAR has developed advanced LPP X-ray source technology for semiconductor nanolithography under a multi-year contract with the DoD. In conjunction with its ongoing work for the DoD, JMAR has expanded the research and commercial application of this unique technology by producing soft X-ray light at wavelengths optimized for advanced instrument functions including high-resolution microscopy and chemical analysis and fabrication at the nanoscale.

"This funding, along with the previously announced award of $2.1 million from the U.S. Government's Naval Air Warfare Center for X-ray mask development, allows us to develop the enabling X-ray source and mask technology for nanolithography," said Ronald Walrod, CEO of JMAR. "And it is this X-ray source and the resultant fine featured nanolithography that will dramatically reduce the cost of X-ray optics and make soft X-ray based instruments economically feasible for defense and commercial applications."

"In addition to the funding provided by these contracts, JMAR is investing its own funds, augmented by our recently announced $4 million financing, to help accelerate development of our Compact X-ray Microscope and our X-ray Nano Probe," continued Walrod. "We believe these instruments, both of which are on track for demonstration this year, will make possible important advances in bioscience, materials research, chemical analysis, and fabrication at the nanoscale."

Certain of these awarded funds apply to costs already incurred and recognized as part of the Company's ongoing LPP soft X-ray program.

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 provide support for the U.S. Government's Defense Microelectronics Activity (DMEA) semiconductor fabrication facility. JMAR is targeting the nanotech, bioscience and semiconductor industries with its Britelight(TM) Laser; Compact X-ray Light Source; X-ray Microscope - for 3D visualization of single cells and polymers- and its X-ray Nano Probe - enabling interaction, analysis and modification at the nano-scale. JMAR also maintains strategic alliances for the development of BioSentry(TM) and READ - biological and chemical sensors 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 delays in completing the improved X-ray source due to unanticipated technical problems, the failure of new product technology to perform as predicted, competition from alternative technologies, uncertainties as to the size of the market, cost and margins, failure to obtain market acceptance, current or future government regulations affecting the use of our products, the lack of availability of critical components, such as laser diodes and X-ray zone plates, the degree of protection from future patents, and other risks associated with the development or acquisition of new products or technologies and those risks detailed in the Company's 2003 Form 10-K and third quarter Form 10-Q filed 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.