PRAB Reports Third Quarter Results

    KALAMAZOO, Mich.--Sept. 18, 2001--PRAB, Inc. (OTC:PRAB) reports third quarter sales of $4,429,000 and earnings of $212,000 for the period ended July 31, 2001. This compares with sales of $4,318,000 and earnings of $83,000 in the same period a year ago. Nine month sales of $11,224,000 and earnings of $222,000 for the current year compares with sales of $11,766,000 and earnings of $170,000 for the same period a year ago.
    The negative earnings per share for the first nine months of 2000 was due to the convertible preferred stock redemption completed on December 28, 1999. In calculating earnings per share, net income for the first nine months of 2000 was reduced by the premium paid on the convertible preferred stock redeemed which totaled $322,667. The impact of this transaction was to reduce earnings per share by approximately $.18 for the first nine months of 2000.
    The order backlog of $3,878,000 at the end of the third quarter ended July 31, 2001 compares with $4,186,000 at the end of the previous quarter ended April 30, 2001 and $2,940,000 at the end of the third quarter a year ago.
    Prab, Inc., operating under two divisions, Prab Conveyors and Hapman Conveyors, designs and manufactures conveyors, metal scrap reclamation systems, and bulk material handling equipment and systems for a wide variety of industrial markets throughout the world.

                              PRAB, INC.
                     Summary of Financial Results
            (in thousands of dollars except per share data)

                        Third Quarter Ended         Nine Months Ended
                             July 31,                  July 31,
                         2001         2000         2001         2000
                      --------     --------     --------     --------
Sales                 $  4,429     $  4,318     $ 11,224     $ 11,766

Net Income                 212           83          222          170

Per Share             $   0.12     $   0.04     $   0.12     $  (0.09)