Reconditioned Systems, Inc. News Release

444 West Fairmont

Tempe, Arizona 85282 Contact: Investor Relations

(480) 968-1772 (Telephone)

(480) 894-1907 (Fax)

“RSI reports Fourth Quarter 2005 results and declares cash dividend”

Tempe, Arizona, May 23, 2005

Dear Fellow Shareholders:

I am pleased to report that Reconditioned Systems, Inc. (“RSI”) was profitable again this quarter. We exceeded our budget for sales and earnings for the year, booked record annual sales for the company, and we were profitable every quarter this fiscal year for the first time in many years. I am extremely proud of our employees and their accomplishments.

For the three months ended March 31 2005, RSI made pre-tax income of $197 thousand on sales of $4.5 million. This compares to a pre-tax profit of $20 thousand on sales of $4.8 million for the quarter ending March 31, 2004. Obviously, this is a strong relative performance and validates the very difficult decisions and changes that we made over the last several years. By becoming a non-reporting public company, we saved a substantial amount of money, and combined with our cost cutting resulted in this excellent performance.

The effect of higher energy prices could have a significant impact on the economy. The last time energy prices had this kind of increase, it led to a recession. Both fiscal and monetary policies are already very stimulative, so the economy is vulnerable to such increases. Despite our concern however, we are still cautiously optimistic about the economy and our business. For this next fiscal year ending March 31, 2006, we are budgeting for flat sales with a modest increase in earnings.

We have just started to realize some savings from the merger between RSI and Beck Office Systems by consolidating some administrative functions in Tempe. We will continue to explore ways of making the combination yield more profits for your company. This will be a continuing focus of the Board of Directors over the next fiscal year.

The Board of Directors of RSI has declared a $0.20 per share cash dividend to all shareholders of record June 24, 2005, payable August 31, 2005. This is a one-time cash dividend which represents a substantial portion of the prior fiscal year’s after-tax earnings. The Board felt that it was important to reward shareholders for their support and forbearance over the last several years through the transition to a non-reporting public company. Future annual cash dividends will be considered by the Board based on financial performance, but there is no guarantee that future cash dividends will be paid.

/S/ Scott W. Ryan

Scott W. Ryan

Chairman of the Board

Reconditioned Systems, Inc.

New Release

May 23, 2005

Page -2-

Summary Consolidated Statement of Operations
	For The Three Months Ended		For the Year Ended
	March 31, 2005 (Unaudited)	March 31, 2004 (Unaudited)	March 31, 2005 (Unaudited)	March 31, 2004 (Unaudited)
Sales	4,522,837	$4,815,237	$19,084,146	$16,580,004
Net income (loss) before provision for income taxes and loss on investment	$297,113	$19,567	$905,035	$(185,152)
Loss on investment	$(100,000)	0	$(100,000)	0
Net income (loss)	$1,787	$9,146	$437,709	$(162,685)
Basic earnings (loss) per share	$0.00	$0.01	$0.30	$(0.12)
Basic weighted average number of common shares outstanding	1,272,053	1,357,774	1,245,112	1,357,774
Diluted earnings (loss) per common and equivalent share	$0.00	$0.01	$0.30	$(0.12)
Diluted weighted average number of common and equivalent shares outstanding	1,272,053	1,465,248	1,245,112	1,357,774

Summary Consolidated Balance Sheet as of
	March 31, 2005 (Unaudited)	March 31, 2004 (Unaudited)		March 31, 2005 (Unaudited)	March 31, 2004 (Unaudited)
Assets			Liabilities and Equity
Cash	$998,716	$996,739	Accounts payable	$708,756	$1,211,255
Accounts receivable	1,643,749	1,862,682	Customer deposits	437,194	381,560
Inventory	1,883,117	1,912,694	Other current liabilities	755,567	510,006
Property & equipment	851,452	713,756	Stockholders’ equity	3,815,947	3,820,300
Other assets	340,430	437,250
Total	$5,717,464	$5,923,121	Total	$5,717,464	$5,923,121

Note: The Company’s press releases are available on our website www.resy.net under Inventor Relations. Any shareholder who would like to sell shares back to the Company should contact the Investor Relations Department at 800-280-5000.