-FOR IMMEDIATE RELEASE -	Additional Information:
PO Box 218370	Larry Edwards x 200
Houston, TX 77218	Carl Schmidt x 203
	281/492-0550
	281/492-0615 -- fax

RELIABILITY INCORPORATED to Transfer to Nasdaq SmallCap Market

HOUSTON, TEXAS, July 16, 2004 - Reliability Incorporated (NASDAQ: REAL), a leader in burn-in and test technology for semiconductors, today announced that it received a determination by the Nasdaq Listing Qualification Staff on July 13, 2004 indicating that the Company's application to list its common stock on the Nasdaq SmallCap Market has been accepted. The Company's securities will be transferred from The Nasdaq National Market to the Nasdaq SmallCap Market at the opening of business on July 16, 2004.

See the Company's websites at www.relinc.com and www.ezyload.com.

Reliability Incorporated is based in Houston, Texas with an operating facility in Singapore. Reliability manufactures burn-in and test equipment for sale to manufacturers and volume users of integrated circuits. The Company's Singapore subsidiary provides conditioning and testing services for integrated circuits. The Company also designs and manufactures a line of power sources, including DC-to-DC power converters and a hydraulic lift product for the automotive aftermarket.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this report regarding Reliability's business which are not historical facts are "forward looking statements" that involve risks and uncertainties that may affect the operations, performance, development and results of the Company's business and include, but are not limited to, adverse changes in the global economy, decreases in the demand for electronic products and semiconductors, market acceptance of the Company's products and services, the impact of competition, delays in product development schedules, delays due to technical difficulties related to developing and implementing technology, delays in delivery schedules, the ability to attract and maintain sufficient levels of people with specific technical talents, future results related to investments or liquidity, changes in demand for the Company's products and services and the Company's customers' products and services, the impact of entering a new line of business (automotive aftermarket), with different marketing strategies, marketing channels, and a different customer base from the Company's historical business lines and the ultimate acceptance by the market of this new product, and continued listing on public markets such as Nasdaq. Actual results may materially differ from projections.