|   | · | The Company reported net income before preferred stock dividends (“net income”) of $38 for the three month period ended September 30, 2010; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Net income was reported for the second consecutive quarter; this is the first time the company has reported two consecutive quarters of net income since the end of 2007; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gross Profit improved to 39% and 40% for the three and nine months ended September 30, 2010, compared to 31% and 32% for the respective 2009 periods; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Excluding the 2009 net settlement gain, selling, general and administrative (“SG&A”) expenses were reduced by 13% and 15% during the three and nine months ended September 30, 2010, respectively, compared to the 2009 periods. As a percentage of revenues SG&A expenses were reduced to 38% and 41% of revenues in the three and nine months ended September 30, 2010 from 53% and 54% in the respective periods during 2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The signing of a new three year $14 million Revolving Credit Agreement with PNC Bank enabling the company to have continuing access to capital, paving the way for continuing financial strength. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                           |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                           |   | 2010                             |   |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |
| Net sales                                      |   | $                                | 18,302 |   |                            | $      | 14,921 |   |   | $ | 50,057 |   |   | $ | 44,400 |   |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                  |   |                             | 11,234 |   |                            |   | 10,321 |   |   |   | 30,220 |   |   |   | 30,159 |   |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                   |   |                             | 7,068  |   |                            |   | 4,600 |   |   |   | 19,837 |   |   |   | 14,241 |   |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general & administrative expenses |   |                             | 6,885  |   |                            |   | 7,918 |   |   |   | 20,409 |   |   |   | 22,092 |   |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                        |   |                             | 183    |   |                            |   | (3,318 | ) |   |   | (572 | ) |   |   | (7,851 | ) |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                          |   |                             | 145    |   |                            |   | 105 |   |   |   | 374 |   |   |   | 194 |   |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before benefit for income tax    |   |                             | 38     |   |                            |   | (3,423 | ) |   |   | (946 | ) |   |   | (8,045 | ) |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                             |   |                             | -      |   |                            |   | (1,465 | ) |   |   | (257 | ) |   |   | (3,443 | ) |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                              |   |                             | 38     |   |                            |   | (1,958 | ) |   |   | (689 | ) |   |   | (4,602 | ) |
| Preferred stock dividends                      |   |                             | 665    |   |                            |   | 615 |   |   |   | 1,957 |   |   |   | 1,809 |   |
| Loss available to common stockholders          |   | $                                | (627   | )      |                            | $      | (2,573 | ) |   | $ | (2,646 | ) |   | $ | (6,411 | ) |
|                                           |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Loss per share (basic and diluted):            |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net loss available to common stockholders      |   | $                                | (.09   | )      |                            | $      | (0.36 | ) |   | $ | (.37 | ) |   | $ | (0.89 | ) |
| Weighted average number of shares              |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                              |   |                             | 7,214  |   |                            |   | 7,186 |   |   |   | 7,213 |   |   |   | 7,205 |   |
|   Diluted                            |   |                             | 7,214  |   |                            |   | 7,186 |   |   |   | 7,213 |   |   |   | 7,205 |   |

----

|                                                               |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|--------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                                               |   | 2010                             |   |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |
| Net loss available to common stockholders                          |   |                             | (627   | )      |                            | $      | (2,573 | ) |   | $ | (2,646 | ) |   | $ | (6,411 | ) |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Add (subtract):                                                    |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net settlement expense (gain)                                      |   |                             | -      |   |                            |   | 13 |   |   |   | - |   |   |   | (1,910 | ) |
| Taxes                                                              |   |                             | -      |   |                            |   | (1,465 | ) |   |   | (257 | ) |   |   | (3,443 | ) |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted net loss available to common stockholders (non-GAAP)      |   |                             | (627   | )      |                            |   | (4,025 | ) |   |   | (2,903 | ) |   |   | (11,764 | ) |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Selling general & administrative expenses                      |   |                             | 6,885  |   |                            |   | 7,918 |   |   |   | 20,409 |   |   |   | 22,092 |   |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Add (subtract):                                                    |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net settlement (expense) gain                                      |   |                             | -      |   |                            |   | (13 | ) |   |   | - |   |   |   | 1,910 |   |
|                                                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted selling, general & administrative expenses (non-GAAP) |   |                             | 6,885  |   |                            |   | 7,905 |   |   |   | 20,409 |   |   |   | 24,002 |   |