News Release

For immediate release, Mountain View, CA, June, 2004.

sp3, Inc. reorganizes into cutting tools and diamond technologies subsidiaries
sp3 Inc, a full service provider of products and services relating to thin-film and thick-film diamond deposition and other diamond materials, has formed two subsidiaries: sp3 Cutting tools Inc. and sp3 Diamond Technologies Inc. The reorganization better serves the growth in diamond applications served by sp3 which are not related to the manufacture and marketing of cutting tools.
sp3 Cutting Tools will continue, without change, in its present facility in Decatur, Indiana.
sp3 Diamond Technologies will continue to develop thin-film and thick-film deposition processes and will provide both products and deposition services to companies world-wide. sp3 Diamond Technologies also manufactures and supplies hot-filament reactors, world-wide.
sp3 Diamond Technologies will be located at sp3's current facility in Mountain View, California, and will encompass sp3's existing thick-film deposition facility in Calgary, Alberta, Canada.
More information about sp3 Inc.
More information about sp3 Diamond Technologies.