EXHIBIT 99.1


FOR IMMEDIATE RELEASE                                COMPANY CONTACT:
                                                     ROBERT W. KLINGE
                                                     (269) 382-8200

                      PRAB, INC. ANNOUNCES MERGER PROPOSAL

                   PROPOSAL FROM STEVENS FINANCIAL GROUP, LLC

KALAMAZOO, MI (August 4, 2003) - PRAB, INC. (OTC BULLETIN BOARD: PRAB), which
operates under two divisions, Prab Conveyors and Hapman Conveyors, and is a
leading provider in the design and manufacturing of conveyors, metal scrap
reclamation systems, and bulk material handling equipment and systems for a wide
variety of industrial markets throughout the world, announced today that it has
received a merger proposal from Stevens Financial Group, LLC.

The proposal, dated July 28, 2003, included in its terms a provision that the
shareholders of Prab would be offered a price of $2.20 per share. An Independent
Special Committee of Prab's Board of Directors has been appointed to review and
negotiate the merger proposal and report back to Prab's Board of Directors.

Note regarding Private Securities Litigation Reform Act: Statements made in this
press release which are not historical facts, including projections, statements
of plans, objectives, expectations, or future economic performance, are forward
looking statements that involve risks and uncertainties and are subject to the
safe harbor created by the Private Securities Litigation Reform Act of 1995.
Prab's future financial performance could differ significantly from that set
forth herein, and from the expectations of management. Important factors that
could cause Prab's financial performance to differ materially from past results
and from those expressed in any forward looking statements include, without
limitation, the inability to obtain additional capital resources, variability in
quarterly operating results, customer concentration, product performance and
acceptance, long sales cycles, long and varying delivery cycles, Prab's
dependence on business partners, emerging technological standards, risks
associated with acquisitions and other risk factors detailed from time to time
in Prab's periodic reports filed with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates.




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