Reliability, Inc - On March 14, 2006, Reliability Incorporated (the...

Reliability, Inc - Recent Material Event

Item 1.01. Entry into a Material Definitive Agreement

On March 14, 2006, Reliability Incorporated (the "Company")entered into an Asset Purchase Agreement with Reliability Power, Inc. under which the Company will sell the assets of its Power Sources Division, excluding accounts receivable.

The foregoing description of the terms of the asset sale does not purport to be a complete statement of the parties' rights or a complete explanation of the material terms of the Asset Purchase Agreement. Such description is qualified in its entirety by reference to the Asset Purchase Agreement, a copy of which is attached as Exhibit 2.1 to this report and is incorporated by reference into this report by this reference.

Prior to entereing into the Asset Purchase Agreement, no material relationship existed between the Company and its subsidiary and Reliability Power, Inc. or any of its affiliates, directors or officers.

Item 2.01. Completion of Acquisition or Disposition of Assets

On March 14, 2006, the Company closed the transaction described in Item 1.01 above. The purchase price was $280,000, paid in cash at closing.

Item 9.01. Financial Statements and Exhibits

(a) Financial Stements of Businesses Acquired

Not applicable.

(b) Unaudited Pro Forma Consolidated Financial Information

Not applicable.

2.1 Asset Purchase Agreement dated March 14, 2006, by and between Reliability Incorporated and Reliability Power, Inc.

99.1 Press release issued by Reliability Incorporated on March 15, 2006

Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.