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SMS Seeks Protection Under Chapter 7

5 January 2001

SMS Seeks Protection Under Chapter 7

    AUSTIN, Texas, Jan. 5 Scientific Measurement Systems, Inc.
announced today that it filed for bankruptcy Chapter 7 of the U.S. Bankruptcy
Code on December 21, 2000.  The Company has formally ceased operation and a
trustee has been appointed to liquidate its assets.
    "The Company experienced a very difficult year with very little new
revenue over the most recent quarters," said Tom Prud'homme.  "In fact the
industrial CT industry as a whole appears to have been in a down turn over the
last year," he added.
    "Additional efforts to develop a strategic service based relationship with
a new European user for the Company's technology were being vigorously pursued
until mid-November when discussions were suddenly terminated.  This new
application seemed to hold considerable promise with the organization in
question, but that large prospective partner ultimately concluded that it
could not commit, invest in, or acquire, a small Austin-based technology
firm."
    SMS has been a publicly traded company traded on the OTC Bulletin Board
under the symbol SCMS.

     Tom Prud'homme
     512-259-7070
     tom@process-sciences.com