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In the area of factory automation, accurate positioning systems are increasingly required in various industries to improve the productivity and to lower the manufacturing cost. In this paper, we present a prototype precision linear stage. It has a positioning accuracy of 1 μm and a peak speed above 1 m/s. A permanent magnet DC linear motor has been used in the system as the actuator to eliminate the need for mechanical transmission from the rotary to linear motion. To achieve a fast and accurate closed loop response, we develop a state space predictive controller and a dynamic friction compensation system for the precision stage. The system has been optimally tuned using the genetic algorithm. Some experimental results are presented.