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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 O7JsExOTn+mYpcDsTH3mSQ==

<SEC-DOCUMENT>0001181431-07-021980.txt : 20070329
<SEC-HEADER>0001181431-07-021980.hdr.sgml : 20070329
<ACCEPTANCE-DATETIME>20070329144446
ACCESSION NUMBER:		0001181431-07-021980
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070329
DATE AS OF CHANGE:		20070329

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RELIABILITY INC
		CENTRAL INDEX KEY:			0000034285
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				750868913
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		16400 PARK ROW
		STREET 2:		P O BOX 218370
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77218-8370
		BUSINESS PHONE:		281-492-0550

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FAIRLANE INDUSTRIES INC
		DATE OF NAME CHANGE:	19800519

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			HARWELL JAMES M
		CENTRAL INDEX KEY:			0001193381

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-07092
		FILM NUMBER:		07727241

	MAIL ADDRESS:	
		STREET 1:		POST OFFICE BOX 218370
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77218-8370
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>rrd152927.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2006-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>1</form3HoldingsReported>

    <form4TransactionsReported>0</form4TransactionsReported>

    <issuer>
        <issuerCik>0000034285</issuerCik>
        <issuerName>RELIABILITY INC</issuerName>
        <issuerTradingSymbol>REAL</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001193381</rptOwnerCik>
            <rptOwnerName>HARWELL JAMES M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>P.O. BOX 218370</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77218-8370</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Operating Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Reliability Incorporated Common Stock</value>
            </securityTitle>
            <transactionCoding>
                <transactionFormType>3</transactionFormType>
            </transactionCoding>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>16249</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Reliability Incorporated Common Stock</value>
            </securityTitle>
            <transactionCoding>
                <transactionFormType>3</transactionFormType>
            </transactionCoding>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>59579</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>401 (k)</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option to purchase Reliability Common Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.21</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-07-19</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>5</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>100000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.21</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-01-20</value>
            </exerciseDate>
            <expirationDate>
                <value>2016-07-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>100000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>233751</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Includes 8,155 shares acquired between 01/01/2006 and 12/31/2006 under Reliability 401 (k) Plan</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ James Harwell</signatureName>
        <signatureDate>2007-03-29</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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