Transbotics Corporation Announces Quarterly Results

CHARLOTTE, N.C.--July 13, 2006--Transbotics Corporation (OTCBB: TNSB) announced results for its fiscal quarter ended May 31, 2006. Net revenues decreased to $2,303,101 compared to $2,310,234 for the fiscal quarter ended May 31, 2005. The Company achieved net income for the second quarter in 2006 of $4,917 compared to a net income of $123,976 in 2005. The decrease in net income was primarily due to the increase in operating expenses compared to the prior year.

Net revenues for the six months period ended May 31, 2006 increased from $3,902,584 in 2005 to $4,357,106 in the latter period. Net income decreased to $13,544 in 2006 from a net income of $114,272 in 2005. The primary reasons for the decrease in the net income were that the Company's operating expenses increased in 2006 compared to 2005.

Earnings per share were $.00 for the most recent fiscal quarter compared to earnings per share of $.00 in 2005, and earnings were $.00 per share for the most recent six month period compared to earnings per share of $.02 for the corresponding period in 2005.

On May 31, 2006, the Company's backlog increased to approximately $3,350,000 compared to approximately $2,930,000 one year earlier.

For over 20 years Transbotics Corporation has specialized in the design, development, support and installation of automation solutions with an emphasis on Automatic Guided Vehicles (AGVs). The Company is a leading North American Automation Solutions Integrator that manufactures, installs and supports various automation technology including AGVs, robotics, batteries, chargers, motors and other related products.

Transbotics provides unique automation solutions to a variety of industries, including aerospace and defense, automotive (tier one supplier), ceramics, chemical processing, entertainment, food and beverage, newsprint and publishing, microelectronics, plastics, primary metals and recycling. Transbotics' current customers include Fortune 500 companies as well as small manufacturing companies.

This release (including information or incorporated by reference herein) may be deemed to contain certain forward-looking statements, with respect to the financial condition, results of operation, plans, objectives, future performance and business of the Company. These forward-looking statements involve certain risk, including, without limitation, the uncertainties detailed in Transbotics Corporation Securities and Exchange Commission filings.

                       TRANSBOTICS CORPORATION

                    CONDENSED STATEMENTS OF INCOME
                             (Unaudited)

                          Three Months Ended       Six Months Ended
                          May 31,    May 31,      May 31,    May 31,
                           2006       2005         2006       2005
------------------------ ---------- ------------ ---------- ----------

Net revenues            $2,303,101 $2,310,234   $4,357,106 $3,902,584
Cost of goods sold       1,665,256  1,687,421    3,175,378  2,783,154
------------------------ ---------- ------------ ---------- ----------
    Gross profit           637,845    622,813    1,181,728  1,119,430
------------------------ ---------- ------------ ---------- ----------

Operating expenses:
      Selling              180,295    127,379      312,362    297,065
      General and
       administrative      369,429    293,623      709,903    591,860
      Research and
       development          70,449     70,073      125,154    101,214
------------------------ ---------- ------------ ---------- ----------
                           620,173    491,075    1,147,419    990,139
------------------------ ---------- ------------ ---------- ----------
           
  Operating  income         17,672    131,738       34,309    129,291
------------------------ ---------- ------------ ---------- ----------


Net interest expense:      (12,755)    (7,762)     (20,765)   (15,019)
------------------------ ---------- ------------ ---------- ----------

Income before income
 taxes                       4,917    123,976       13,544    114,272

Federal and state
 income taxes  (Note B)          -          -            -          -
------------------------ ---------- ------------ ---------- ----------


Net income               $   4,917  $ 123,976    $ 13,544   $ 114,272
======================== ========== ============ ========== ==========

Weighted average number
 of common shares
 outstanding             4,838,511  4,827,223   4,833,073   4,825,852
------------------------ ---------- ----------- ---------- -----------

Income per common share
 - basic (Note C)       $     0.00 $     0.03   $     0.00 $     0.02
Income  per common share
 - diluted  (Note C)          0.00       0.03         0.00       0.02

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Dividends per common
 share                  $       -  $        -   $       -  $        -
======================= ========== ===========  ========== ===========

See Notes to the Condensed Financial Statements