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I have seen a few very small models using something called "Modulex" pieces and have even heard that they are directly related to LEGO somehow? They don't seem to be around anymore so I was wondering what their history was?

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Not around anymore? I have a 2x5 right here! (At some time, they produced a planning board which my company still uses for operator shifts.) – Joubarc Oct 27 '11 at 11:54
@Joubarc I meant that I didn't believe you could still buy them new. I am sure there are plenty of people who have there sets still. – RedRiderX Oct 27 '11 at 22:06
up vote 7 down vote accepted

Modulex bricks were produced by LEGO mainly for architects as the dimensions were more easy to scale up (they are 5mm in all directions).

You can find a full history (which I confess I didn't read) here

In time, Modulex started to focus more on signage and separated from LEGO, but it still exists nowadays.

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The german Wikipedia article states that they were meant to be used by architects, etc. They are much easier to use for to-scale models, because they are 5 mm high (which results in a comfortable 1:20 scale). It would be quite hard to do that with the standard 8x9.6 mm LEGO bricks.

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