COMPANY HISTORY

The Company was established in 1948 and concentrated on machining. In late 2000, the Company acquired the assets of MagStar Technologies, Inc., a private high-energy magnet and magnetic assembly company. In early 2001, the Company changed its name to MagStar Technologies, Inc. to reflect the new character of its business. In February 2001, the Company acquired the assets of Quickdraw^® Conveyors, a provider of conveyors and technology for factory, laboratory and equipment automation. The magnet and automation technologies compliment and enable the Company to fully serve the medical, semiconductor, motion control, and factory automation markets.

The Company today is also a contract manufacturer of precision-machined components and close tolerance bearing-related assemblies used in electro-mechanical devices such as several models of blood centrifuges for a variety of medical applications. Other growing concentrations include biometric identification assemblies, spindles, precision slides, complex magnetic assemblies, and motion control devices for factory or OEM equipment automation. In order to differentiate itself from its competitors, the Company emphasizes its design and manufacturing engineering capability and support.

The Company still manufactures and sells proprietary self-powered oil centrifuges under the Reuter¬ Name.