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Prab Reports Repurchase of Convertible Preferred Stock

4 January 2000

Prab Reports Repurchase of Convertible Preferred Stock

    KALAMAZOO, Mich.--Jan. 4, 2000--Prab Inc. has repurchased 366,667 shares of its convertible preferred shares from the State of Michigan Retirement Systems (SMRS).
    The repurchase was completed on Dec. 28, 1999, at the price of $1.63 per share. The 366,667 shares represented 100 percent of the convertible preferred shares issued by the company.
    Gary Herder, Prab's president and CEO, reported, "With this transaction, Prab has now completed the repurchase of all the shares of Prab once owned by the SMRS. The repurchased convertible preferred shares, with the right to be converted to common shares on a one-to-one basis, represented approximately 16 percent of the company's outstanding shares on a fully diluted basis."
    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. is a public company with its stock (symbol:PRAB) regularly quoted on the OTC Bulletin Board (OTCBB:PRAB).