| [ X      ] | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|------------|------------------------------------------------------------------------------------------------|

| OR                   |
|----------------------|
| [   ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

|             New      York             |              11-1978958                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State      or other jurisdiction of incorporation or organization)                                                                                           | (I.R.S.      Employer Identification No.)                                                                                                                                                 |
| 145 Oser Avenue, Hauppauge, New      York                                                                                                                     |                 11788               |
| (Address      of principal executive offices)                                                                                                                 | (Zip      Code)                                                                                                                                                                           |

----

----

|   | Forward-Looking      Statements |
|--------|---------------------------------|

----

|   | Item      1.  Business. |
|--------|-----------------------------------|

|   | Our      Company |
|--------|------------------|

| •      telecommunications equipment                                            | •      computers and office equipment                                                                                   |
|--------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
| •      medical devices and instrumentation                                     | •      industrial equipment and controls                                                                                |
| •      military/aerospace systems•      voting and gaming machines  | •      automotive electronics•      home entertainment and other      consumer   electronics  |

----

|   | Our      Industry |
|--------|-------------------|

|   | Products |
|--------|----------|

|    | 2008 | 2007 | 2006 |
|---------|------|------|------|
| Semi    | 37%  | 54%  | 50%  |
| FPD     | 37%  | 25%  | 27%  |
| Passive | 18%  | 15%  | 15%  |
| EMCH    | 8%   | 6%   | 8%   |

----

|   | Value-Added      Services |
|--------|---------------------------|

| ·   | Automated Inventory Management      Services.  We offer comprehensive, state-of-the-art      solutions that effectively manage our customers’ inventory reordering,      stocking and administration functions.  These services reduce      paperwork, inventory, cycle time and the overall cost of doing business      for our customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Kitting.  Kitting      consists of assembling to a customer’s specifications two or more of our      45,000 stock items into pre-packaged kits ready for use in the customer’s      assembly line.  Kitting services allow us to provide a partial      or complete fill of a customer’s order and enable the customer to more      efficiently manage its inventory. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Programming.  We      offer both field programming instruments, as well as volume production      capabilities performed in-house.  All standard surface mount and      dip packages are available.  We provide custom oscillators at a      user-specified frequency.  In addition, we offer configurable      modular power supplies featuring the flexibility of 10 wide-range outputs,      with the best technical specifications in its class.  This      configurable power supply series offers quick turnaround and fully-tested      units in medical, test and measurement, industrial and datacom      applications. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | FPD Integration. Our      FPD sales specialists and technical engineers work directly with our      customers to design, develop, configure, test and deliver highly      customized solutions to meet specific FPD requirements for both business      and consumer applications. We are able to internalize key elements of the      FPD integration process that were previously sub-contracted to outside      vendors and offer customers a one-stop source for their FPD and      integration needs through our state-of-the-art FPD integration      facility.  See “Operations –  Manufacturing.” |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Suppliers |
|--------|-----------|

----

|   | Operations |
|--------|------------|

----

----

|   | Backlog |
|--------|---------|

|   | Employees |
|--------|-----------|

----

----

----

| -   | increasing      our vulnerability to general adverse economic and industry      conditions; |
|---------------|---------------------------------------------------------------------------------------------|

| -   | increasing      our exposure to increasing interestrates; |
|---------------|-----------------------------------------------------------|

| -   | restricting      our credit with our suppliers, which would limit our ability to purchase      inventory; |
|---------------|-----------------------------------------------------------------------------------------------------------|

| -   | limiting      our ability to obtain additional financing on acceptable terms or at      all; |
|---------------|----------------------------------------------------------------------------------------------|

| -   | requiring      the dedication of a portion of any cash flow from operations to service      our indebtedness (currently, our credit facility requires the deposit of      customer receipts to be directed to a blocked account and applied directly      to the repayment of outstanding indebtedness), thereby reducing the amount      of any cash flow available for other purposes, including capital      expenditures; |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| -   | limiting      our flexibility in planning for, or reacting to, changes in our business      and the industry in which we compete;and |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------|

| -   | placing      us at a possible competitive disadvantage relative to less leveraged      competitors and competitors that have better access to capital      resources. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | import      and export regulations that could erode profit margins or restrict      exports; |
|---------------|----------------------------------------------------------------------------------------------|

| -   | the      burden and cost of compliance with foreign laws, treaties and technical      standards and changes in thoseregulations; |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|

| -   | potential      restrictions on transfers of funds; |
|---------------|----------------------------------------------------|

| -   | foreign      currency fluctuations; |
|---------------|-------------------------------------|

| -   | import      and export duties and value addedtaxes; |
|---------------|-----------------------------------------------------|

| -   | transportation      delays and interruptions; |
|---------------|-----------------------------------------------|

| -   | uncertainties      arising from local business practices and cultural considerations;      and |
|---------------|------------------------------------------------------------------------------------------------|

| -   | potential      military conflicts and politicalrisks. |
|---------------|-------------------------------------------------------|

----

| -   | increases      in tariffs or duties; |
|---------------|--------------------------------------|

| -   | changes      in trade treaties; |
|---------------|---------------------------------|

| -   | strikes      or delays in air or seatransportation; |
|---------------|-----------------------------------------------------|

| -   | future      U.S. legislation with respect to pricing and/or import quotas on products      imported from foreign countries;and |
|---------------|--------------------------------------------------------------------------------------------------------------------------------|

| -   | turbulence      in offshore economies or financialmarkets. |
|---------------|------------------------------------------------------------|

----

----

| Item      2. | Properties. |
|--------------|-------------|

|    Location |   Base      RentPer      Month |    Square      Feet |    Use               |  LeaseExpirationDate |
|----------------------------|------------------------------------------|------------------------------------|-------------------------------------|---------------------------|
|                       |                                     |                               |                                |                      |
| Hauppauge,      NY (1)     | $60,775                                  | 72,000                             | Administrative,                     | 12/31/13                  |
|                       |                                     |                               | Sales,                              |                      |
|                       |                                     |                               | Warehouse,      and FPD Integration |                      |
|                       |                                     |                               |                                |                      |
| Westlake      Village, CA  | $4,500                                   |  3,750                        | Administrative,                     | 4/30/09                   |
|                       |                                     |                               | Sales      and                      |                      |
|                       |                                     |                               | Warehouse                           |                      |
|                       |                                     |                               |                                |                      |
|                       |                                     |                               |                                |                      |

| (1)   | Leased      from a partnership owned by Joel H. Girsky, Chairman and President of the      Company, and Charles B. Girsky, Executive Vice President, at a current      monthly rent, which the Company believes represents the fair market value      for such space. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item      3. | Legal      Proceedings. |
|--------------|-------------------------|

----

| Item      4. | Submission      of Matters to a Vote of SecurityHolders. |
|--------------|----------------------------------------------------------|

----

| Item      5. | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Our      common stock is traded on the Nasdaq National Market under the symbol      “JACO”.  The stock prices listed below represent the high and      low sale prices of our common stock, as reported by the Nasdaq National      Market, for each fiscal quarter beginning with the first fiscal quarter of      the fiscal year ended June 30,2007. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | High             | Low              |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------|
| Fiscal      Year 2007:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |             |             |
| First      quarter ended September 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $4.38            | $3.11            |
| Second      quarter ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            |        3.89 |        3.05 |
| Third      quarter ended March 31,      2007                                                                        |        4.49 |        3.11 |
| Fourth      quarter ended June 30,      2007                                                                        |        3.60 |        2.00 |
| Fiscal      Year 2008:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |             |             |
| First      quarter ended September 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $2.31            | $1.62            |
| Second      quarter ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            |        1.99 |        1.06 |
| Third      quarter ended March 31,      2008                                                                        |        1.60 |        1.05 |
| Fourth      quarter ended June 30,      2008                                                                        |        2.30 |        1.06 |

|        (b)  | As      of September 19, 2008, there were approximately 143 holders of record of      our common stock.  We believe our stock is held by more than      1800 beneficial owners. |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     (c) |  We      have never declared or paid any cash dividends on our common      stock.  We intend for the foreseeable future to retain future      earnings for use in our business.  The amount of dividends we      pay in the future, if any, will be at the discretion of our Board of      Directors and will depend upon our financial condition, operating results      and other factors as the Board of Directors, in its discretion, deems      relevant.  In addition, our credit facility prohibits us from      paying cash dividends on our commonstock. |
|-----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          (d) | There      have been no issuer repurchases on the open market or in connection with      equity plans. |
|-----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

----

----

| Item      6. | Selected      Financial Data. |
|--------------|-------------------------------|

|                                                                                      | Year      Ended June 30,                                       |                                                                 |
|-------------------------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
|                                                                                      | 2008                                                           |      2007                                   |     2006 |     2005 |     2004 |
|                                                                                      |                                                           |                                                                 |
| Net      sales                                                                            | $193,719                                                       | $240,232                                                             | $228,521 | $231,824 | $249,100 |
| Cost      of Goods Sold                                                                   |   162,272                                            |   206,507                                                  |   198,316 |   205,924 |   214,389 |
|                                                                                      |                                                           |                                                                 |   |   |   |
|        Gross      profit                               |     31,447                                 |     33,725                                       |     30,205 |     25,900 |     34,711 |
|                                                                                      |                                                           |                                                                 |   |   |   |
| Selling,      general and administrative expenses                                         |     29,913                                 |     30,851                                       |     28,082 |     32,112 |     35,016 |
| Impairment      of goodwill                                                               |       8,500                      |          -              |         - |         - |         - |
|                                                                                      |                                                           |                                                                 |   |   |   |
|        Operating      income (loss)                    |     (6,966)                                |       2,874                            |       2,123 |      (6,212) |         (305) |
| Interest      expense                                                                     |       2,119                      |       2,789                            |       2,618 |       2,029 |       1,539 |
|                                                                                      |                                                           |                                                                 |   |   |   |
|        Income      (loss) from continuing              |                                                           |                                                                 |   |   |   |
|          operations      before income taxes |     (9,085)                                |            85 |         (495) |      (8,241) |      (1,844) |
|                                                                                      |                                                           |                                                                 |   |   |   |
| Income      tax provision (benefit)                                                       |           51 |            23 |       6,467 |      (2,814) |         (553) |
|                                                                                      |                                                           |                                                                 |   |   |   |
| Income      (loss) from continuing operations                                             |    (9,136)                                      |            62 |      (6,962) |      (5,427) |      (1,291) |
|                                                                                      |                                                           |                                                                 |   |   |   |
| Income      (loss) from discontinued operations,                                          |                                                           |                                                                 |   |   |   |
|   net      of tax                                                               |        -                    |      (3,183)                                |          - |          567 |          736 |
|                                                                                      |                                                           |                                                                 |   |   |   |
|        NET      INCOME (LOSS)                          |  $(9,136)                                                 |    $(3,121)                                           |    $(6,962) |    $(4,860) |       $(555) |
|                                                                                      |                                                           |                                                                 |   |   |   |
| PER      SHARE INFORMATION                                                                |                                                           |                                                                 |   |   |   |
|   Basic      income (loss) per common share:                                    |                                                           |                                                                 |   |   |   |
|                                                                                      |                                                           |                                                                 |   |   |   |
|    Income      (loss) from continuing operations                           |    $(1.45)                                      |       $0.01                            |      $(1.11) |      $(0.87) |      $(0.22) |
|                                                                                      |                                                           |                                                                 |   |   |   |
|    Income      (loss) from discontinued operations                         |     -                                      |        (0.51)                     |           - |         0.09 |         0.13 |
|                                                                                      |                                                           |                                                                 |   |   |   |
|    Net      loss                                                           |     $(1.45)                                |      $(0.50)                                |      $(1.11) |      $(0.78) |      $(0.09) |
|                                                                                      |                                                           |                                                                 |   |   |   |
|   Diluted      income (loss) per common share:                                  |                                                           |                                                                 |   |   |   |
|                                                                                      |                                                           |                                                                 |   |   |   |
|    Income      (loss) from continuing operations                           |     $(1.45)                                |       $0.01                            |      $(1.11) |      $(0.87) |      $(0.22) |
|                                                                                      |                                                           |                                                                 |   |   |   |
|    Income      (loss) from discontinued operations                         |     -                                      |       (0.50)                           |           - |         0.09 |         0.13 |
|                                                                                      |                                                           |                                                                 |   |   |   |
|    Net      Loss                                                           |     $(1.45)                                |     $(0.49)                                      |      $(1.11) |      $(0.78) |      $(0.09) |
|                                                                                      |                                                           |                                                                 |   |   |   |

----

| Weighted-average      common shares and                |                           |                                                                       |                                                                       |                                                                       |                                                            |
|--------------------------------------------------------|--------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|-----------------------------------------------------------------|
| Common      equivalent shares outstanding:   |                           |                                                                       |                                                                       |                                                                       |                                                            |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
|    Basic                                |     6,294  |       6,294                                  |       6,283                                  |       6,250                                  |       5,974                       |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
|    Diluted                              |     6,294  |       6,360                                  |       6,283                                  |       6,250                                  |       5,974                       |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
|                                                   |                           |                                                                       |
|                                                   | 2008                           |       2007                                   |       2006                                   |       2005                                   |       2004                        |
| Consolidated      Balance Sheet:                       |                           |                                                                       |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
| Working      capital                                   |     $4,112 |      $3,897                                       |      $4,106                                       |      $7,334                                       |    $17,459                                       |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
| Total      assets                                      |   $89,124            |      96,087                                       |    103,080                                                  |    112,222                                                  |    121,782                                       |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
| Current      maturities of long term-debt              |   $31,410            |      37,772                                       |      35,142                                       |      33,266                                       |      37,089                            |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
| Long-term      debt                                    | -                              |             35 |             88 |             57 |           119 |
|                                                   |                           |                                                                       |                                                                       |                                                                       |                                                            |
| Shareholders’      equity                        |    $23,100      |      32,115                                       |      35,171                                       |      42,071                                       |      46,706                            |

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations. |
|--------------|--------------------------------------------------------------------------------------------------------|

----

|   | Critical      Accounting Policies |
|--------|-----------------------------------|

----

----

|   | New      Accounting Standards |
|--------|-------------------------------|

----

----

|                                                              |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      Sales                                                    |   |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0 | % |
| Cost      of goods sold                                           |   |   | 83.8   |   |   |   | 86.0   |   |   |   | 86.8 |   |
| Gross      profit                                                 |   |   | 16.2   |   |   |   | 14.0   |   |   |   | 13.2 |   |
| Selling,      general and administrative expenses                 |   |   | 15.4   |   |   |   | 12.8   |   |   |   | 12.3 |   |
| Impairment      of goodwill                                       |   |   | 4.4    |   |   |   | -      |   |   |   | - |   |
| Operating      income (loss)                                      |   |   | (3.6   | )      |   |   | 1.2    |   |   |   | 0.9 |   |
| Interest      expense                                             |   |   | 1.1    |   |   |   | 1.2    |   |   |   | 1.1 |   |
| Income      (loss) from continuing operations before income taxes |   |   | (4.7   | )      |   |   | -      |   |   |   | (0.2 | ) |
| Income      tax provision (benefit)                               |   |   | -      |   |   |   | -      |   |   |   | 2.8 |   |
| Income      (loss) from continuing operations                     |   |   | (4.7   | )      |   |   | -      |   |   |   | (3.0 | ) |
| Earnings      (loss) from discontinued operations, net of taxes   |   |   | -      |   |   |   | (1.3   | )      |   |   | - |   |
| Net      loss                                                     |   |   | (4.7   | )%     |   |   | (1.3   | )%     |   |   | (3.0 | )% |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

|   | Off-Balance      Sheet Arrangements |
|--------|-------------------------------------|

|   | Contractual      Obligations |
|--------|------------------------------|

|                 |   | Total |       |   | <      1 Year |   |       | 1      to 3 Years |   |   | 3      to 5 Years |   |   | >      5 Years |      |
|----------------------|--------|-------|------------|--------|------------------|--------|------------|-------------------|--------|--------|-------------------|--------|--------|-------------------|-----------|
| Line      of Credit  |   | $     | 31,374,987 |   |             | $      | 31,374,987 |              |   | __     |              |   | __     |              |      | __ |   |
| Capital      Lease   |   | $     | 34,966     |   |             | $      | 34,966     |              |   |   |              |   |   |              |      |   |   |
| Operating      Lease |   | $     | 5,605,523  |   |             | $      | 1,300,167  |              |   | $      | 2,010,975         |   |   | $                 | 1,828,985 |   |   | $ | 465,396 |   |
|  Total          |   | $     | 37,015,476 |   |             | $      | 32,710,120 |              |   | $      | 2,010,975         |   |   | $                 | 1,828,985 |   |   | $ | 465,396 |   |

----

|   | Inflation      and Seasonality |
|--------|--------------------------------|

| Item      7A. | Quantitative      and Qualitative Disclosures about MarketRisk. |
|---------------|-----------------------------------------------------------------|

| Item      8. | Financial      Statements and Supplementary Data. |
|--------------|---------------------------------------------------|

| Item      9. | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure. |
|--------------|-------------------------------------------------------------------------------------------------|

| Item      9A. |   Controls      and Procedures. |
|---------------|-------------------------------------------|

----

| Item      9B. | Other      Information |
|---------------|------------------------|

| Item      10. | Directors      and Executive Officers of theRegistrant. |
|---------------|---------------------------------------------------------|

|   | Code      of Ethics |
|--------|---------------------|

----

| Item      11. | Executive      Compensation. |
|---------------|------------------------------|

| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters. |
|---------------|-----------------------------------------------------------------------------------------------------------|

|   | Equity      Compensation Plan Disclosure |
|--------|------------------------------------------|

| Plan      category                                                     |   | (a)Number      of SecuritiesTo      be Issued UponExercise      of Outstanding Options, Warrants and Rights |   | (b)Weighted-AverageExercise      Price ofOutstanding      Options, Warrants and Rights |   | (c)Number      of SecuritiesRemaining      Available forFuture      Issuance Under EquityCompensation      Plans (Excluding SecuritiesReflected      in Column (a)) |
|------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans (stock options) approved bystockholders |   |   689,750                                                                                         |   |   $4.41                                                                      |   |   510,250                                                                                                                                                 |
|                                                                   |   |                                                                                                        |   |                                                                                   |   |                                                                                                                                                                |
|                                                                   |   |                                                                                                        |   |                                                                                   |   |                                                                                                                                                                |
| Total                                                                  |   | 689,750                                                                                                     |   | $4.41                                                                                  |   | 510,250                                                                                                                                                             |
|                                                                   |   |                                                                                                        |   |                                                                                   |   |                                                                                                                                                                |

| Item      13. | Certain      Relationships and RelatedTransactions. |
|---------------|-----------------------------------------------------|

| Item      14. | Principal      Accountant Fees and Services. |
|---------------|----------------------------------------------|

----

| Item      15. | Exhibits      and Financial Statement Schedules. |
|---------------|--------------------------------------------------|

|      |   |                                                                                                                                                                              | Page                  |
|-----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|
| (a)       | (1)    | Financial      Statements included in Part II, Item 8, of this Report:                                                                                                            |                  |
|      |   | Index      to Consolidated Financial Statements and Schedule                                                                                                                      | F-1                   |
|      |   | Reports      of Independent Registered Public Accounting Firms                                                                                                                    | F-2      – F-3  |
|      |   | Consolidated      Balance Sheets                                                                                                                                                  | F-4      – F-5  |
|      |   | Consolidated      Statements of Operations                                                                                                                                        | F-6                   |
|      |   | Consolidated      Statement of Changes in Shareholders’ Equity                                                                                                              | F-7                   |
|      |   | Consolidated      Statements of Cash Flows                                                                                                                                        | F-8                   |
|      |   | Notes      to Consolidated Financial Statements                                                                                                                                   | F-9      – F-31 |
|      | (2)    | Financial      Statement Schedule included in Part IV of this Report:                                                                                                             |                  |
|      |   | Reports      of Independent Registered Public Accounting Firms on supplemental      schedule                                                                                      | F-32      - F-33      |
|      |   | Schedule      II - Valuation and Qualifying Accounts                                                                                                                              | F-34                  |
|  (b) |   | See      Exhibit Index on pages 34 through 40 of this report for a list      of the exhibits filed, furnished or incorporated by reference as part of      this report. |                  |

----

| Exhibit      No. | Exhibit |
|------------------|---------|

| 3.1 | Restated      Certificate of Incorporation adopted November, 1987, incorporated by      reference to the Company’s definitive proxy statement distributed in      connection with the Company’s annual meeting of shareholders held in      November, 1987, filed with the SEC on November 3, 1986, as set forth in      Appendix A to the aforesaid proxystatement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.1 | Certificate      of Amendment of the Certificate of Incorporation, adopted December, 1995,      incorporated by reference to the Company’s Annual Report on Form 10-K for      the year ended June 30, 1996 (“the Company’s 1996 10-K”), Exhibit      3.1.1. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Restated      By-Laws adopted June 18, 1987, incorporated by reference to the Company’s      Annual Report on Form 10-K for the year ended June 30, 1987 (“the      Company’s 1987 10-K”),  Exhibit3.2. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Form      of Common Stock Certificate, incorporated by reference to the Company’s      Registration Statement on Form S-1, Commission File No. 2-91547, filed      June 9, 1984, Exhibit 4.1. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Sale      and leaseback with Bemar Realty Company (as assignee of Hi-Tech Realty      Company), incorporated by reference to the Company’s Annual Report on Form      10-K for the year ended June 30, 1983, Exhibit 10(1), pages      48-312. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Amendment      No. 1 to Lease between the Company and Bemar Realty Company (as assignee      of Hi-Tech Realty Company), incorporated by reference to the Company’s      Registration Statement on Form S-1, Commission File No. 2-91547, filed      June 9, 1984, Exhibit 10.2. 10.2.2 Lease between the Company and Bemar      Realty Company, dated January 1, 1996, incorporated by reference to the      Company’s 1996 10-K, Exhibit10.2.2. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | 1993      Non-Qualified Stock Option Plan, incorporated by reference to the      Company’s 1993 10-K, Exhibit 10.6. |
|------|---------------------------------------------------------------------------------------------------------------------------|

| 10.6.1 | 1993      Non-Qualified Stock Option Plan, as amended (filed as Exhibit A to the      Company’s Definitive Proxy Statement, dated November 3, 1997 for the      Annual Meeting of Shareholders held on December 9,  1997. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6.2 | 1993      Non-Qualified Stock Option Plan, as amended (filed as Exhibit A to the      Company’s Definitive Proxy Statement, dated November 2, 1998 for the      Annual Meeting of Shareholders held on December 7,  1998. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Stock      Purchase Agreement, dated as of February 8, 1994 by and among the Company      and Reilrop, B.V. and Guaranteed by Cray Electronics Holdings PLC,      incorporated by reference to the Company’s Current Report on Form 8-K,      dated March 11, 1994. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | 1993      Stock Option Plan for Outside Directors, incorporated by reference to the      Company’s Annual Report on Form 10-K for the year ended June 30, 1994,      Exhibit 10.8. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.10 | Authorized      Electronic Industrial Distributor Agreement, dated as of August 24, 1970      by and between AVX and the Company, incorporated by reference to the      Company’s Annual Report on Form 10-K for the year ended June 30, 1995,      Exhibit 10.10. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Electronics      Corporation Distributor Agreement, dated November 15, 1974, by and between      KEMET and the Company, incorporated by reference to the Company’s Annual      Report on Form 10-K for the year ended June 30, 1995, Exhibit      10.11. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Restricted      Stock Plan (filed as Exhibit B to the Company’s Definitive Proxy      Statement, dated November 3, 1997 for the Annual Meeting of Shareholders      held on December 9, 1997). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12.1 | Form      of Escrow Agreement under the Restricted Stock Plan, incorporated by      reference to the Company’s Registration Statement on Form S-8/S-3,      Commission File No. 333 -49877, filed April 10, 1998 Exhibit      4.2. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12.2 | Form      of Stock Purchase Agreement under the Restricted Stock Plan, incorporated      by reference to the Company’s Registration Statement on Form S-8/S-3,      Commission File No. 333 - 49877, filed April 10, 1998 Exhibit      4.3. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12.3 | Form      of Stock Option Agreement, incorporated by reference to the Company’s      Registration Statement on Form S-8/S-3, Commission File No. 333 -49877,      filed April 10, 1998 Exhibit 4.4. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12.4 | Restricted      Stock Plan (filed as Exhibit B to the Company’s Definitive Proxy      Statement, dated November 2, 1998 for the Annual Meeting of Shareholders      held on December 7, 1998). |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Employment      agreement between Joel Girsky and the Company, incorporated by reference      to the Company’s Quarterly Report on Form 10-Q for the quarter ended      September 30, 1998, Exhibit 10.13. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13.1 | Amendment      No. 1 to Employment Agreement between Joel Girsky and the Company,      incorporated by reference to the Company’s Annual Report on Form 10-K for      the year ended June 30, 2001, Exhibit10.13.1. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | Employment      Agreement between Charles Girsky and the Company, incorporated by      reference to the Company’s Quarterly Report on Form 10-Q for the quarter      ended September 30, 1998, Exhibit10.14. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 | Employment      Agreement between Jeffrey D. Gash and the Company, incorporated by      reference to the Company’s Quarterly Report on Form 10-Q for the quarter      ended September 30, 1998, Exhibit10.15. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15.1 | Amendment      No. 1 to the Employment Agreement between Jeffrey D. Gash and the Company,      incorporated by reference to the Company’s Annual Report on Form 10-K for      the year ended June 30, 2001, Exhibit10.15.1. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 | Employment      Agreement, dated June 6, 2000, between the Company and Joseph Oliveri,      incorporated by reference to the Company’s Current Report on Form 8-K,      filed June 12, 2000, Exhibit 10.16. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.16.1 | Amendment      No. 1 to the Employment Agreement between Joseph Oliveri and the Company,      incorporated by reference to the Company’s Annual Report on Form 10-K for      the year ended June 30, 2001, Exhibit10.16.1. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | Stock      Purchase Agreement by and among Jaco Electronics, Inc. and all of the      Stockholders of Interface Electronics Corporation as of May 4, 2000,      incorporated by reference to the Company’s Current Report on Form 8-K,      filed May 15, 2000, Exhibit 2.1. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17.1 | Amendment      No. 1 to the Stock Purchase Agreement by and among Jaco Electronics, Inc.      and all of the Stockholders of Interface Electronics Corp. as of May 4,      2000, dated June 6, 2000, incorporated by reference to the Company’s      Current Report on Form 8-K, filed June 12, 2000, Exhibit    2.2. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 | Agreement      between the Company and Gary Giordano, incorporated by reference to the      Company’s Annual Report on Form 10-K for the year ended June 30, 2001,      Exhibit 10.18. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19 | Employment      Agreement between Joel H. Girsky and the Company, incorporated by      reference to the Company’s Annual Report on Form 10-K for the year ended      June 30, 2001, Exhibit 10.19. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20 | Employment      Agreement between Charles Girsky and the Company, incorporated by      reference to the Company’s Annual Report on Form 10-K for the year ended      June 30, 2001, Exhibit 10.20. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21 | Asset      Purchase Agreement dated as of May 19, 2003 by and between the Company and      Reptron Electronics, Inc., incorporated by reference to the Company’s      Current Report on Form 8-K, filed June 26, 2003, Exhibit    2.1. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21.1 | First      Amendment to the Asset Purchase Agreement dated as of June 2, 2003 by and      between the Company and Reptron Electronics, Inc., incorporated by      reference to the Company’s Current Report on Form 8-K, filed June 26,      2003, Exhibit 2.2. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22 | Second      Restated and Amended Loan and Security Agreement dated September 13, 1995      among the Company, Nexus Custom Electronics, Inc., BNYCC and NatWest Bank,      N.A. (“Second Restated and Amended Loan and Security Agreement”),      incorporated by reference to the Company’s Registration Statement on Form      S-2, Commission File No. 33-62559, filed October 13, 1995, Exhibit      99.8. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.1 | Amendment      to the Second Restated and Amended Loan and Security Agreement, dated as      of April 10, 1996, incorporated by reference to the Company’s 1996 10-K,      Exhibit 99.8.1. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.2 | Amendment      to the Second Restated and Amended Loan and Security Agreement, dated as      of August 1, 1997, incorporated by reference to the Company’s Annual      Report on Form 10-K for the year ended June 30, 1998, Exhibit      99.8.2. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.3 | Amendment      to Second Restated and Amended Loan and Security Agreement dated July 1,      1998, incorporated by reference to the Company’s Quarterly Report on Form      10-Q for the quarter ended September 30, 1998, Exhibit    99.8.3. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.4 | Amendment      to Second Restated and Amended Loan and Security Agreement dated September      21, 1998 incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended September 30, 1998, Exhibit      99.8.4. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.22.5 | Amendment      to Second Restated and Amended Loan and Security Agreement dated October      26, 1999, incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended September 30, 1999, Exhibit      99.8.5. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.6 | Amendment      to Second Restated and Amended Loan and Security Agreement dated December      31, 1999, incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended December 31, 1999, Exhibit      99.8.6. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.7 | Amendment      to Second Restated and Amended Loan and Security Agreement dated June 6,      2000, incorporated by reference to the Company’s Annual Report on Form      10-K for the fiscal year ended June 30, 2000, Exhibit    99.8.7. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.8 | Amendment      to Second Restated and Amended Loan and Security Agreement dated September      28, 2000, incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended September 30, 2000, Exhibit      99.8.8. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.9 | Amendment      to Second Restated and Amended Loan and Security Agreement dated January      29, 2001, incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended December 31, 2000, Exhibit      99.8.9. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.10 | Amendment      to Second Restated and Amended Loan and Security Agreement dated June 12,      2001, incorporated by reference to the Company’s Annual Report on Form      10-K for the year ended June 30, 2001, Exhibit  99.8.10. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.11 | Amendment      to Second Restated and Amended Loan and Security Agreement dated July 1,      2001, incorporated by reference to the Company’s Annual Report on Form      10-K for the year ended June 30, 2001, Exhibit  99.8.11. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.12 | Amendment      to Second Restated and Amended Loan and Security Agreement dated November      14, 2001, incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended September 30, 2001, Exhibit      99.8.12. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.13 | Amendment      to Second Restated and Amended Loan and Security Agreement dated February      6, 2002, incorporated by reference to the Company’s Quarterly Report on      Form 10-Q for the quarter ended December 31, 2001, Exhibit      99.8.13. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.14 | Amendment      to Second Restated and Amended Loan and Security Agreement dated September      23, 2002, incorporated by reference to the Company’s Annual Report on Form      10K for the year ended June 30, 2002, Exhibit  99.8.14. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.15 | Amendment      to Second Restated and Amended Loan and Security Agreement dated May 12,      2003, incorporated by reference to the Company’s Quarterly Report on Form      10-Q for the quarter ended March 31, 2003, Exhibit  99.8.15. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.16 | Amendment      to Second Restated and Amended Loan and Security Agreement dated June 5,      2003, incorporated by reference to the Company’s Current Report on Form      8-K, filed June 26, 2003, Exhibit99.8.16. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22.17 | Amendment      to Second Restated and Amended Loan and Security Agreement dated September      19, 2003, incorporated by reference to the Company’s Annual Report on      Form  10-K for the year ended June 30, 2003, Exhibit      99.8.17. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.22.18   | Amendment      to Second Restated and Amended Loan and Security Agreement      dated November 7, 2003, incorporated by reference to the Company’s      Quarterly Report on Form 10-Q for the quarter ended September 30, 2003,      Exhibit 99.8.18. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23 | Third      Restated and Amended Loan and Security Agreement dated as of December 22,      2003, by and among GMAC Commercial Finance LLC as Lender and as Agent, PNC      Bank, National Association, as Lender and Co-Agent, Jaco Electronics,      Inc., Nexus Custom Electronics, Inc., Interface Electronics Corp. and Jaco      de Mexico, Inc. (“Third Restated and Amended Loan and Security      Agreement”), incorporated by reference to the Company’s Current Report on      Form 8-K, filed January 8, 2004, Exhibit10.23. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.1 | Amendment      to Third Restated and Amended Loan and Security Agreement dated September      20, 2004, by and among GMAC Commercial Finance LLC, as Lender and as      Agent, PNC Bank, National Association, as Lender and Co-Agent, Jaco      Electronics, Inc., Nexus Custom Electronics, Inc. and Interface      Electronics Corp., incorporated by reference to the Company’s Annual      Report on Form 10-K for the year ended June 30, 2004, Exhibit      10.23.1. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.2 | Amendment      to Third Restated and Amended Loan and Security Agreement dated November      23, 2004, by and among GMAC Commercial Finance LLC, as Lender and as      Agent, PNC Bank, National Association, as Lender and Co-Agent, Jaco      Electronics, Inc., Nexus Custom Electronics, Inc. and Interface      Electronics Corp., incorporated by reference to the Company’s Quarterly      Report on Form 10-Q for the quarter ended December 31, 2004, Exhibit      10.23.2. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.3 | Amendment      to Third Restated and Amended Loan and Security Agreement dated February      11, 2005, by and among GMAC Commercial Finance LLC, as Lender and as      Agent, PNC Bank, National Association, as Lender and Co-Agent, Jaco      Electronics, Inc., Nexus Custom Electronics, Inc. and Interface      Electronics Corp., incorporated by reference to the Company’s Quarterly      Report on Form 10-Q for the quarter ended December 31, 2004, Exhibit      10.23.3. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.4 | Amendment      to Third Restated and Amended Loan and Security Agreement dated May 10,      2005, by and among GMAC Commercial Finance LLC, as Lender and as Agent,      PNC Bank, National Association, as Lender and Co-Agent, Jaco Electronics,      Inc., Nexus Custom Electronics, Inc. and Interface Electronics Corp.,      incorporated by reference to the Company’s Quarterly Report on Form 10-Q      for the quarter ended March 31, 2005, Exhibit  10.23.4. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.5 | Amendment      to Third Restated and Amended Loan and Security Agreement dated September      28, 2005, by and among GMAC Commercial Finance LLC, as Lender and as      Agent, PNC Bank, National Association, as Lender and Co-Agent, Jaco      Electronics, Inc., Nexus Custom Electronics, Inc. and Interface      Electronics Corp., incorporated by refinance to the Company’s Annual      Report on Form 10-K for the year ended June 30, 2005, Exhibit      10.23.5. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.6 | Waiver      to Third Restated and Amended Loan and Security Agreement dated November      14, 2005, by and among GMAC Commercial Finance LLC, as Lender and as      Agent, PNC Bank, National Association, as Lender and Co-Agent, Jaco      Electronics, Inc., Nexus Custom Electronics, Inc. and Interface      Electronics Corp., incorporated by reference to the Company’s Quarterly      Report on Form 10-Q for the quarter ended September 30, 2005, Exhibit      10.23.6. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.23.7 | Amendment      to Third Restated and Amended Loan and Security Agreement dated February      13, 2006, by and among GMAC Commercial Finance LLC, as Lender and as      Agent, PNC Bank, National  Association, as Lender and Co-Agent,      Jaco  Electronics, Inc., Nexus Custom Electronics, Inc. and      Interface Electronics Corp., incorporated by reference to the Company’s      Quarterly Report on Form 10-Q for the quarter ended December 31, 2005,      Exhibit 10.23.7. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23.8 | Amendment      to Third Restated and Amended Loan and Security Agreement dated May 2,      2006, by and among GMAC Commercial Finance LLC, as Lender and as Agent,      The CIT Group /Business Credit, Inc., as Lender and Co-Agent, Jaco      Electronics, Inc., Nexus Custom Electronics, Inc. and Interface      Electronics Corp., incorporated by reference to the Company’s Quarterly      Report on Form 10-Q for the quarter ended March 31, 2006, Exhibit      10.23.8. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.24 | Asset      Purchase Agreement made and entered into as of September 20, 2004 among      Sagamore Holdings, Inc., NECI Acquisition, Inc., Nexus Custom Electronics,      Inc. and Jaco Electronics, Inc., incorporated by reference to the      Company’s Current Report on Form 8-K, filed September 23, 2004, Exhibit      10.24. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.25 | 2000      Stock Option Plan, incorporated by reference to Exhibit A to the Company’s      Definitive Proxy Statement on Schedule 14A, dated November 17, 2000, for      the Company’s Annual Meeting of Shareholders held on December 12,      2000. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.26 | 2000      Stock Option Plan, as amended, incorporated by reference to the Company’s      Annual Report on Form 10-K for the year ended June 30, 2005, Exhibit      10.26. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27 | Credit      Agreement dated as of December 22, 2006 among Jaco Electronics, Inc. and      Interface Electronics Corp., as borrowers, and The CIT Group/Business      Credit, Inc., as Agent, Swingline Lender and Issuing Bank (“CIT”), and CIT      Capital Securities, LLC, as Syndication Agent, Sole Bookrunner, and Sole      Load Arranger (the “CreditAgreement”). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.1 | Amendment      No. 1 to Credit Agreement dated as of January 23, 2007 among CIT, as Agent      under the Credit Agreement, and Jaco Electronics, Inc. and Interface      Electronics Corp., as Borrowers under the Credit  Agreement. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.2 | Assignment      and Assumption Agreement dated as of January 23, 2007 between CIT and Bank      of America, N.A., consented to by Jaco Electronics,  Inc. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.3  | Consent      to Supplemental Loan under Loan and Security Agreement dated as of March      5,  2007 among CIT, as Agent under the Credit Agreement, and      Jaco Electronics, Inc. and Interface Electronics Corp., as Borrowers under      the Credit Agreement. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.4 | Amendment      No. 1 to Consent to Supplemental Loan under Loan and Security      Agreement dated as of March 23, 2007 among CIT, as Agent under the      Credit Agreement, and Jaco Electronics, Inc. and Interface Electronics      Corp., as Borrowers under the CreditAgreement. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.5 | Amendment      No. 2 to Consent to Supplemental Loan under Loan and Security      Agreement dated as of May 18, 2007 among CIT, as Agent under the Credit      Agreement, and Jaco Electronics, Inc. and Interface Electronics Corp., as      Borrowers under the CreditAgreement. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.27.6 | Amendment      No. 3 to Consent to Supplemental Loan under Loan and Security      Agreement dated as of July 24, 2007 among CIT, as Agent under the      Credit Agreement, and Jaco Electronics, Inc. and Interface Electronics      Corp., as Borrowers under the CreditAgreement. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.7   | Amendment      and waiver to Credit Agreement dated as of November 13, 2007 among      CIT,   as Agent under the Credit Agreement, and Jaco      Electronics, Inc. and Interface Electronics  Corp., as Borrowers      under the Credit Agreement. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.27.8   | Second      Amendment to Credit Agreement dated as of February 12, 2008 among CIT,      as Agent under the Credit Agreement, and Jaco Electronics, Inc. and      Interface Electronics  Corp., as Borrowers under the Credit      Agreement. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1 | Subsidiaries      of the Company. |
|------|-----------------------------------|

| 23.1 | Consent      of Grant Thornton LLP. |
|------|-------------------------------------|

| 23.2 | Consent      of Eisner LLP. |
|------|-----------------------------|

| 31.1 | Rule      13a-14(a)/15d-14(a) Certification of Principal Executive      Officer. |
|------|----------------------------------------------------------------------------------|

| 31.2 | Rule      13a-14(a)/15d-14(a) Certification of Principal Financial      Officer. |
|------|----------------------------------------------------------------------------------|

| 32.1   | Section      1350 Certification of Principal Executive  Officer. |
|------------------|------------------------------------------------------------------|

| 32.2   | Section      1350 Certification of Principal Financial  Officer. |
|------------------|------------------------------------------------------------------|

----

| Name                                                          | Title                                                                                                    | Date                    |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|------------------------------|
| /s/ Joel H.      Girsky   Joel      H. Girsky       | Chairman      of the Board,President      and Treasurer(Principal      Executive Officer)                     | September      29, 2008 |
| /s/      Jeffrey D. Gash   Jeffrey      D. Gash     | Executive      Vice President-Finance      and Secretary(Principal      Financial andAccounting      Officer) | September      29, 2008 |
| /s/ Joseph F.      Oliveri  Joseph      F. Oliveri       | Vice      Chairman of the Boardand      Executive Vice President                                              | September      29, 2008 |
| /s/ Charles B.      Girsky   Charles      B. Girsky | Executive      Vice President andDirector                                                                     | September      29, 2008 |
| /s/ Don      Ackley Don      Ackley                           |  Director                                                                                                | September      29, 2008 |
| /s/      Marvin Meirs Marvin      Meirs                       | Director                                                                                                      | September      29, 2008 |
| /s/      Robert J. WaldmanRobert      J. Waldman                   | Director                                                                                                      | September      29, 2008 |

----

----

----

----

| ASSETS                                                                                                          |   | 2008   |       |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                            |   |   |       |   |   |   |
| CURRENT      ASSETS                                                                                             |   |   |       |   |   |   |
| Cash      and cash equivalents                                                                                  |   | $      | 14,444     |   |   | $      | 15,713 |   |
| Accounts      receivable, less allowance for doubtful accountsof      $1,402,000 in 2008 and $1,029,000 in 2007 |   |   | 32,591,064 |   |   |   | 35,752,247 |   |
| Inventories,      net                                                                                           |   |   | 34,602,641 |   |   |   | 30,364,720 |   |
| Prepaid      expenses and other                                                                                 |   |   | 1,727,707  |   |   |   | 551,159 |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
| Total      current assets                                                                                       |   |   | 68,935,856 |   |   |   | 66,683,839 |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
| PROPERTY,      PLANT AND EQUIPMENT - NET                                                                        |   |   | 1,005,047  |   |   |   | 1,433,286 |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
| GOODWILL                                                                                                        |   |   | 16,916,087 |   |   |   | 25,416,087 |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
| OTHER      ASSETS                                                                                               |   |   | 2,267,236  |   |   |   | 2,553,345 |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
|                                                                                                            |   |   |       |   |   |   |   |   |
|              Total      assets                 |   | $      | 89,124,226 |   |   | $      | 96,086,557 |   |

----

| LIABILITIES      AND                                                                                             |   |   |             |   |   |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|--------|
| SHAREHOLDERS’      EQUITY                                                                                  |   | 2008   |             |   | 2007   |   |
|                                                                                                             |   |   |             |   |   |   |
| CURRENT      LIABILITIES                                                                                         |   |   |             |   |   |   |
| Accounts      payable                                                                                            |   | $      | 29,678,221       |   |   | $      | 22,762,966 |   |
| Current      maturities of long-term debt and                                                                    |   |   |             |   |   |   |   |   |
| capitalized      lease obligations                                                                               |   |   | 31,409,953       |   |   |   | 37,772,069 |   |
| Accrued      compensation                                                                                        |   |   | 721,381          |   |   |   | 995,521 |   |
| Accrued      expenses and other current liabilities                                                              |   |   | 3,000,073        |   |   |   | 1,240,755 |   |
| Income      taxes payable                                                                                        |   |   | 13,769           |   |   |   | 15,657 |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
| Total      current liabilities                                                                                   |   |   | 64,823,397       |   |   |   | 62,786,968 |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
| LONG-TERM      DEBT AND CAPITALIZED LEASE                                                                        |   |   |             |   |   |   |   |   |
| OBLIGATIONS                                                                                                      |   |   | -                |   |   |   | 34,966 |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
| DEFERRED      COMPENSATION                                                                                       |   |   | 1,200,001        |   |   |   | 1,150,000 |   |
|                Total      liabilities |   |   |  66,023,398 |   |   |   |  63,971,934 |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                               |   |   |             |   |   |   |   |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
| SHAREHOLDERS’      EQUITY                                                                                  |   |   |             |   |   |   |   |   |
| Preferred      stock - authorized, 100,000 shares, $10                                                           |   |   |             |   |   |   |   |   |
| par      value; none issued                                                                                      |   |   |             |   |   |   |   |   |
| Common      stock - authorized, 20,000,000 shares,                                                               |   |   |             |   |   |   |   |   |
| $.10      par value; 6,954,232 shares                                                                            |   |   |             |   |   |   |   |   |
|  issued  and      6,294,332                                                                       |   |   |             |   |   |   |   |   |
|  shares      outstanding                                                                                    |   |   | 695,423          |   |   |   | 695,423 |   |
| Additional      paid-in capital                                                                                  |   |   | 27,236,361       |   |   |   | 27,114,567 |   |
| (Accumulated      deficit) retained earnings                                                                     |   |   | (2,516,390       | )      |   |   | 6,619,199 |   |
|  Treasury      stock – 659,900 shares at cost                                                         |   |   | (2,314,566       | )      |   |   | (2,314,566 | ) |
|                                                                                                             |   |   |             |   |   |   |   |   |
|                                                                                                             |   |   | 23,100,828       |   |   |   | 32,114,623 |   |
|                                                                                                             |   |   |             |   |   |   |   |   |
|                                                                                                             |   | $      | 89,124,226       |   |   | $      | 96,086,557 |   |

----

|                                                                                                      |   | 2008   |        |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Net      sales                                                                                            |   | $      | 193,718,952 |   |   | $      | 240,231,746 |   |
| Cost      of goods sold                                                                                   |   |   | 162,272,117 |   |   |   | 206,506,584 |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| Gross      profit                                                                                         |   |   | 31,446,835  |   |   |   | 33,725,162 |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| Selling,      general and administrative expenses                                                         |   |   | 29,913,226  |   |   |   | 30,850,381 |   |
| Impairment      of goodwill                                                                               |   |   | 8,500,000   |   |   |   | - |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| Operating  (loss)      income                                                                   |   |   | (6,966,391  | )      |   |   | 2,874,781 |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| Interest      expense                                                                                     |   |   | 2,118,769   |   |   |   | 2,789,309 |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| (Loss)      income from continuing operations before income taxes                                         |   |   | (9,085,160  | )      |   |   | 85,472 |   |
| Income      tax provision                                                                                 |   |   | 50,429      |   |   |   | 22,991 |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| (Loss)      income from continuing operations                                                             |   |   | (9,135,589  | )      |   |   | 62,481 |   |
|                                                                                                      |   |   |        |   |   |   |   |   |
| Discontinued      operations:                                                                             |   |   |        |   |   |   |   |   |
|           Loss      on sale of net assets of subsidiary |   |   | -           |   |   |   | (3,183,401 | ) |
|                                                                                                      |   |   |        |   |   |   |   |   |
| Loss      from discontinued operations                                                                    |   |   | -           |   |   |   | (3,183,401 | ) |
|                                                                                                      |   |   |        |   |   |   |   |   |
| NET      LOSS                                                                                             |   | $      | (9,135,589  | )      |   | $      | (3,120,920 | ) |
|                                                                                                      |   |   |        |   |   |   |   |   |
| PER      SHARE INFORMATION                                                                                |   |   |        |   |   |   |   |   |
| Basic      income (loss) earnings per common share:                                                       |   |   |        |   |   |   |   |   |
| (Loss)      income from continuing operations                                                             |   | $      | (1.45       | )      |   | $      | 0.01 |   |
| Loss      from discontinued operations                                                                    |   |   | -           |   |   |   | (0.51 | ) |
| Net      loss                                                                                             |   | $      | (1.45       | )      |   | $      | (0.50 | ) |
| Diluted      (loss) income earnings per common share:                                                     |   |   |        |   |   |   |   |   |
| (Loss)      income from continuing operations                                                             |   | $      | (1.45       | )      |   | $      | 0.01 |   |
| Loss      from discontinued operations                                                                    |   |   | -           |   |   |   | (0.50 | ) |
| Net      loss                                                                                             |   | $      | (1.45       | )      |   | $      | (0.49 | ) |
| Weighted-average      common shares and common                                                            |   |   |        |   |   |   |   |   |
| equivalent      shares outstanding:                                                                       |   |   |        |   |   |   |   |   |
| Basic                                                                                                     |   |   | 6,294,332   |   |   |   | 6,294,332 |   |
| Diluted                                                                                                   |   |   | 6,294,332   |   |   |   | 6,360,216 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |      |   |    |   |    |       |   |   |       |   |   |                |       |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|---------|--------|---------|------------|--------|--------|------------|--------|--------|---------------------|------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |      |   |    |   |    | Additional |   |   |       |   |   |                |       |   | Total  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Common      stock |      |   | paid-in |   |    | Retained   |   |   | Treasury   |   |   | shareholders’ |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Shares            |      |   | Amount  |   |    | capital    |   |   | Earnings   |   |   | stock               |       |   | equity |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |      |   |    |   |    |       |   |   |       |   |   |                |       |   |   |   |
| Balance      at June 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | 6,954,232 |   |    | $      | 695,423 |       |   | $      | 27,049,999 |   |   | $                   | 9,740,119  |   |   | $      | (2,314,566 | ) |   | $ | 35,170,975 |   |
|                                                                          Net      loss |   |              |      |   |    |   |    |       |   |   |       |   |   |                | (3,120,920 | )      |   |   |   |   |   |   | (3,120,920 | ) |
| Stock      based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |      |   |    |   |    |       |   |   | 64,568     |   |   |                |       |   |   |   |   |   |   |   | 64,568 |   |
| Balance      at June 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | 6,954,232 |   |    |   | 695,423 |       |   |   | 27,114,567 |   |   |                | 6,619,199  |   |   |   | (2,314,566 | ) |   |   | 32,114,623 |   |
|                                                                          Net      loss |   |              |      |   |    |   |    |       |   |   |       |   |   |                | (9,135,589 | )      |   |   |   |   |   |   | (9,135,589 | ) |
| Stock      based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |      |   |    |   |    |       |   |   | 121,794    |   |   |                |       |   |   |   |   |   |   |   | 121,794 |   |
| Balance      at June 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | 6,954,232 |   |    | $      | 695,423 |       |   | $      | 27,236,361 |   |   | $                   | (2,516,390 | )      |   | $      | (2,314,566 | ) |   | $ | 23,100,828 |   |

----

|                                                                                                                                   |   | 2008   |         |   | 2007   |   |         |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|
| Cash      flows from operating activities                                                                                              |   |   |         |   |   |
| Net      loss                                                                                                                          |   | $      | (9,135,589   | )      |   | $      | (3,120,920   | ) |
| Loss      on sale of net assets of subsidiary                                                                                          |   |   | -            |   |   |   | 3,183,401    |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| (Loss)      income from continuing operations                                                                                          |   |   | (9,135,589   | )      |   |   | 62,481       |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Adjustments      to reconcile net income (loss) from continuing operations to net cash      provided by (used in) operating activities |   |   |         |   |   |   |         |   |   |
| Impairment      of goodwill                                                                                                            |   |   | 8,500,000    |   |   |   |         |   |   |
| Depreciation      and amortization                                                                                                     |   |   | 713,306      |   |   |   | 725,309      |   |
| Deferred      compensation                                                                                                             |   |   | 50,001       |   |   |   | 50,000       |   |
| Stock-based      compensation                                                                                                          |   |   | 121,794      |   |   |   | 64,568       |   |
| Provision      for doubtful accounts                                                                                                   |   |   | 372,994      |   |   |   | 546,126      |   |
| Changes      in operating assets and liabilities, net of                                                                               |   |   |         |   |   |   |         |   |   |
| effects      of acquisitions                                                                                                           |   |   |         |   |   |   |         |   |   |
| Decrease      in accounts receivable                                                                                                   |   |   | 2,788,189    |   |   |   | 200,017      |   |
| (Increase)      decrease in inventories                                                                                                |   |   | (4,237,921   | )      |   |   | 2,906,717    |   |
| (Increase)      decrease in prepaid expenses and other                                                                                 |   |   | (1,176,548   | )      |   |   | 43,203       |   |
| (Decrease)      increase in other assets                                                                                               |   |   | 98,516       |   |   |   | (404,073     | ) |
| (Decrease)      increase in accounts payable                                                                                           |   |   | 6,915,255    |   |   |   | (6,184,754   | ) |
| Decrease      in income taxes payable                                                                                                  |   |   | (1,888       | )      |   |   | (24,155      | ) |
| (Decrease)      increase  in accrued compensation                                                                            |   |   | (274,140     | )      |   |   | 44,948       |   |
| Increase      (decrease) increase  in accrued expenses and other current      liabilities                                    |   |   | 1,759,318    |   |   |   | (400,003     | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Net      cash provided by (used in) operating activities                                                                               |   |   | 6,493,287    |   |   |   | (2,369,616   | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Cash      flows from investing activities                                                                                              |   |   |         |   |   |   |         |   |   |
| Capital      expenditures                                                                                                              |   |   | (97,474      | )      |   |   | (221,104     | ) |
| Net      cash used in investing activities                                                                                             |   |   | (97,474      | )      |   |   | (221,104     | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Cash      flows from financing activities                                                                                              |   |   |         |   |   |   |         |   |   |
| Borrowings      from line of credit                                                                                                    |   |   | 193,010,299  |   |   |   | 247,580,648  |   |
| Repayments      of line of credit                                                                                                      |   |   | (199,354,236 | )      |   |   | (244,957,813 | ) |
| Principal      payments under equipment financing                                                                                      |   |   | (53,145      | )      |   |   | (45,613      | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Net      cash (used in) provided by  financing activities                                                                    |   |   | (6,397,082   | )      |   |   | 2,577,222    |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| NET      DECREASE IN CASH AND CASH EQUIVALENTS                                                                                         |   |   | (1,269       | )      |   |   | (13,498      | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Cash      and cash equivalents at beginning of year                                                                                    |   |   | 15,713       |   |   |   | 29,211       |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Cash      and cash equivalents at end of year                                                                                          |   | $      | 14,444       |   |   | $      | 15,713       |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |
| Supplemental      disclosures of cash flow information:                                                                                |   |   |         |   |   |   |         |   |   |
| Cash      paid during the year for:                                                                                                    |   |   |         |   |   |   |         |   |   |
| Interest                                                                                                                               |   | $      | 2,118,769    |   |   | $      | 2,900,000    |   |
| Income      taxes                                                                                                                      |   |   | 40,000       |   |   |   | 65,000       |   |

----

----

----

|                                      |   | 2008   |      |   | 2007   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                      |   |   |      |   |   |   |
| Beginning      balance                    |   | $      | 1,029,000 |   |   | $      | 491,000 |   |
| Provision      for doubtful accounts      |   |   | 376,000   |   |   |   | 544,000 |   |
| Other                                     |   |   |      |   |   |   | 42,000 |   |
| Write-offs      of uncollectible accounts |   |   | (3,000    | )      |   |   | (48,000 | ) |
|                                      |   |   |      |   |   |   |   |   |
| Ending      balance                       |   | $      | 1,402,000 |   |   | $      | 1,029,000 |   |

----

----

| Year      ending June 30, |   |   |    |
|---------------------------|--------|--------|---------|
| 2009                      |   | $      | 171,000 |   |
| 2010                      |   |   | 171,000 |   |
| 2011                      |   |   | 171,000 |   |
| 2012                      |   |   | 171,000 |   |
| 2013                      |   |   | 171,000 |   |

----

|                                                                     | YearEnded           |
|--------------------------------------------------------------------------|---------------------|
|                                                                     | June       30, |
|                                                                     | 2008                | 2007 |
|                                                                     |                |   |
| Weighted-average      number of shares                                   |                |   |
|    outstanding      (basic)                               | 6,294,332           | 6,294,332 |
|                                                                     |                |   |
| Effect      of dilutive securities: Stock options                        | -                   | 65,884 |
|                                                                     |                |   |
| Weighted-average      number of common                                   |                |   |
|    and      potential common shares outstanding (diluted) | 6,294,332           | 6,360,216 |
|                                                                     |                |   |

----

----

----

----

----

----

|                                                                                                                                              | Useful       |                                                                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                              | Life         | June      30,                            |
|                                                                                                                                              | in years     | 2008                                                                                                           | 2007              |
|                                                                                                                                              |         |                                                                                                                                                                            |   |
| Machinery      and equipment                                                                                                                      | 3      to 7  | $      8,801,615                                                                                                                                                                | $      8,747,253 |
| Internally      developed software costs                                                                                                          | 7            |         2,224,345                                                                                                                                                     |         2,224,345 |
| Transportation      equipment                                                                                                                     | 3      to 5  |              76,942                                                                                                                          |              76,942 |
| Leasehold      improvements                                                                                                                       | 5      to 10 |           614,687                                                                                                                                           |            601,218 |
|                                                                                                                                              |         |                                                                                                                                                                            |   |
|                                                                                                                                              |         | 11,717,589                                                                                                                                                                      | 11,649,758 |
|                                                                                                                                              |         |                                                                                                                                                                            |   |
| Less      accumulated depreciation and amortization (including      $190,712 in 2008 and $166,693 in 2007 of capitalized      lease amortization) |         | (10,712,542)                                                                                                                                                                    | (10,216,472) |
|                                                                                                                                              |         |                                                                                                                                                                            |   |
|                                                                                                                                              |         | $1,005,047                                                                                                                                                                      | $1,433,286 |

----

|     |   | Year Ended June 30, |   |
|----------|--------|---------------------|--------|
|     |   | 2008                |   |   | 2007 |   |
| Federal  |   |                |   |   |   |   |
| Current  |   | $                   | -      |   |   | $ | - |   |
| Deferred |   | -                   |   |   | - |   |
|     |   |                |   |   |   |   |   |   |
|     |   |                | -      |   |   |   | - |   |
|     |   |                |   |   |   |   |   |   |
| State    |   |                | 50,429 |   |   |   | 22,991 |   |
|     |   |                |   |   |   |   |   |   |
|     |   | $                   | 50,429 |   |   | $ | 22,991 |   |

|                                                |   | Year Ended June 30, |   |
|-----------------------------------------------------|--------|---------------------|--------|
|                                                |   | 2008                |   |   | 2007 |   |
|                                                |   |                |   |   |   |   |
| Statutory      U.S. Federal tax rate                |   |                | (34.0  | )% |   |   | 34.0 | % |
| State      income taxes, net of Federal tax benefit |   |                | 1.0    |   |   |   | (3.4 | ) |
| Sales      expense for which no tax benefit arises  |   |                | 1.3    |   |   |   | 130.1 |   |
| Impairment      of nondeductible goodwill           |   |                | 31.8   |   |   |   | - |   |
| Valuation      Allowance                            |   |                | .5     |   |   | (133.8) |   |
| Effective      tax rate                             |   |                | .6     | % |   |   | 26.9 | % |

----

|                                                                         |   |       |       |   |
|------------------------------------------------------------------------------|--------|------------|------------|--------|
|                                                                         |   |  2008 |       |   |  2007 |   |
| Deferred      tax assets                                                     |   |       |       |   |   |   |
| Net      operating loss and other carryforwards                              |   | $          | 3,977,000  |   |   | $ | 3,300,000 |   |
| Allowance      for bad debts                                                 |   |       | 533,000    |   |   |   | 391,000 |   |
| Inventory      valuation                                                     |   |       | 2,330,000  |   |   |   | 2,500,000 |   |
| Deferred      compensation                                                   |   |       | 663,000    |   |   |   | 625,000 |   |
| Other      deferred tax assets                                               |   |       | 809,000    |   |   |   | 1,404,000 |   |
|                                                                         |   |       |       |   |   |   |   |   |
| Total      deferred tax assets                                               |   |       | 8,312,000  |   |   |   | 8,220,000 |   |
|                                                                         |   |       |       |   |   |   |   |   |
| Deferred      tax liabilities                                                |   |       |       |   |   |   |   |   |
| Depreciation      and amortization                                           |   |       | (346,000   | )      |   |   | (300,000 | ) |
|     Total      deferred tax liabilities                  |   |       | (346,000   | )      |   |   | (300,000 | ) |
|     Valuation      AllowanceNet      deferred tax assets |   |       | (7,966,000 | )      |   |   | (7,920,000 | ) |
|                                                                         |   |       |       |   |   |   |   |   |
|      Less:      Current portion                     |   | -          |       |   | - |   |
|                                                                         |   |       |       |   |   |   |   |   |
|      Net      deferred tax asset                    |   | $-         |       |   | $- |   |

----

|   | June      30,                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 2008                                                                                                                              | 2007               |

| Revolving      line of credit (a)                      |   | $      | 31,374,987  |   |   | $      | 37,718,924  |   |
|--------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|
| Capitalized      lease obligations (b)                 |   |   | 36,781      |   |   |   | 99,834      |   |
|                                                   |   |   |        |   |   |   |        |   |
|                                                   |   |   | 31,411,768  |   |   |   | 37,818,758  |   |
|                                                   |   |   |        |   |   |   |        |   |
| Less      amounts representing interest on capitalized |   |   |        |   |   |   |        |   |
| lease      obligations                                 |   |   | (1,815      | )      |   |   | (11,723     | )      |
|                                                   |   |   |        |   |   |   |        |   |
|                                                   |   |   | 31,409,953  |   |   |   | 37,807,035  |   |
|                                                   |   |   |        |   |   |   |        |   |
| Less      current maturities                           |   |   | (31,409,953 | )      |   |   | (37,772,069 | )      |
|                                                   |   |   |        |   |   |   |        |   |
|                                                   |   | $      | 0           |   |   | $      | 34,966      |   |

----

----

|                      |                                                                                           | Capitalized                                                                                            |
|---------------------------|------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
|                      | Debt                | Leases                 |
|                      |                                                                                           |                                                                                                   |
| Year      ending June 30, |                                                                                           |                                                                                                   |
| 2009                      | 31,374,987                                                                                     | 34,966                                                                                                 |

|             Year      ending June 30, |                        |
|---------------------------------------------------------------------------------------------------|-----------------------------|
|             2009                      | $1,219,635                  |
|             2010                      |  1,018,268             |
|             2011                      | 949,019                     |
|             2012                      | 908,918                     |
|             2013                      | 920,067                     |
|                   Thereafter          |      465,396 |
|                                                                                              |                        |
|                                                                                              |     $5,481,303    |

----

|                 Year      ending June 30, |               |
|---------------------------------------------------------------------------------------------------------------------------|--------------------|
|                 2009                      | $72,212            |
|                 2010                      |        41,495 |
|                 2011                      | 2,194              |
|                                                                                                                      |               |
|                                                                                                                      | $115,901           |

----

----

|                                                           |   |                                                    |              |   |                               |   |    | Weighted- |   |
|----------------------------------------------------------------|--------|---------------------------------------------------------|-------------------|--------|------------------------------------|--------|---------|-----------|--------|
|                                                           |   |             Nonqualified  |              |   | average                            |   |
|                                                           |   |        stock      options |              |   | exercise                           |   |
|                                                           |   | Price range                                             |              |   |         Shares |   |    | price     |   |
|                                                           |   |                                                    |              |   |                               |   |    |      |   |
| Outstanding      at June 30, 2006                              |   | $                                                       | 2.35      - $8.31 |   |                               |   | 499,750 |      |   | $ | 5.07 |   |
| Granted                                                        |   | $                                                       | 3.10      - $3.80 |   |                               |   | 190,000 |      |   | $ | 3.48 |   |
| Forfeited                                                      |   | $                                                       | 2.35      - $8.00 |   |                               |   | (65,500 | )         |   | $ | 3.55 |   |
|                                                           |   |                                                    |              |   |                               |   |    |      |   |   |   |   |
| Outstanding      at June 30, 2007                              |   | $                                                       | 2.35      - $8.31 |   |                               |   | 624,250 |      |   | $ | 4.74 |   |
| Granted                                                        |   | $                                                       | 1.90              |   |                               |   | 87,500  |      |   | $ | 1.90 |   |
| Forfeited                                                      |   | $                                                       | 2.35      - $6.70 |   |                               |   | (22,000 | )         |   | $ | 3.81 |   |
|                                                           |   |                                                    |              |   |                               |   |    |      |   |   |   |   |
| Outstanding      at June 30, 2008                              |   | $                                                       | 1.90      - $8.31 |   |                               |   | 689,750 |      |   | $ | 4.41 |   |
|                                                           |   |                                                    |              |   |                               |   |    |      |   |   |   |   |
| Options      exercisable and expected to vest at June 30, 2008 |   |                                                    |              |   |                               |   | 466,875 |      |   | $ | 5.16 |   |
|                                                           |   |                                                    |              |   |                               |   |    |      |   |   |   |   |
| Options      exercisable at June 30, 2007                      |   |                                                    |              |   |                               |   | 434,250 |      |   | $ | 5.30 |   |

|                                 |   |                            |   |                                                              |     Weighed      Average                                                   |   |                                                                       |
|--------------------------------------|--------|---------------------------------|--------|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|
|                                 |   |                            |   |       Weighted                      |          Remaining                                |   |                                                                       |
|                                 |   |  Number      of            |   |        Average                 |    Contractual      Term in                                                     |   | Aggregated      Intrinsic                                                  |
|                                 |   |    Options       |   |    Exercise Price                                  |              Years            |   |        Value (1)                        |
|                                 |   |                            |   |                                                              |                                                                                           |   |                                                                       |
| Outstanding      as of June 30, 2008 |   |     689,750 |   |           $4.41 |                5.63 |   |            $      - |
|                                 |   |                            |   |                                                              |                                                                                           |   |                                                                       |
| Exercisable      as of June 30, 2008 |   |     466,875 |   |           $5.16 |                4.58 |   |            $      - |

| (1)   | The      aggregate intrinsic value of options outstanding is calculated as the      difference between the exercise price of the underlying options and the      market price of the Company's common stock for options that were      in-the-money as of that date. There were no options in-the-money as of      June 30, 2008 and there was no intrinsic value as of that date for options      outstanding or exercisable. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                             |   |   |    |   |               |   |
|----------------------------------|--------|--------|---------|--------|--------------------|--------|
|                             |   |   |    |   | Weighted-          |   |
|                             |   |   |    |   | Average      Grant |   |
|                             |   | Shares |    |   | Date Fair Value    |   |
|                             |   |   |    |   |               |   |
| Non-vested      at June 30, 2006 |   |   | 0       |   |               |   |   |
| Granted                          |   |   | 190,000 |   |               |   | $3.48 |   |
|                             |   |   |    |   |               |   |   |   |
| Non-vested      at June 30, 2007 |   |   | 190,000 |   |               |   | $3.48 |   |
| Granted                          |   |   | 87,500  |   |               |   | $1.90 |   |
| Vested                           |   |   | (45,125 | )      |               |   | $3.47 |   |
| Forfeited                        |   |   | (9,500  | )      |               |   | $3.49 |   |
|                             |   |   |    |   |               |   |   |   |
| Non-vested      at June 30, 2008 |   |   | 222,875 |   |               |   | $2.86 |   |
|                             |   |   |    |   |               |   |   |   |

----

|                           | Year      ended June 30,           |
|--------------------------------|------------------------------------|
|                           | 2008                               | 2007 |
|                           |                               |   |
| Semiconductors                 | $  71,171,000            | $129,915,000 |
| Flat      Panel Displays       |     72,548,000 |    59,395,000 |
| Passive      components        |     35,381,000 |    37,028,000 |
| Electromechanical      devices |     14,619,000 |    13,894,000 |
|                           |                               |   |
|                           | $193,719,000                       | $240,232,000 |

----

|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
|---------------------------------------------------|---------------------------------------------------------------------------------------|------------------------------------------|------------------------------------------------|------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------------|--------|
|                                              |              Quarter | Ended                                    |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
|                                              |      June      30,                                           |   March      31,               | December      31,                              | September      30,                             |      June      30,                       |   March      31,                        | December      31,                                           | September      30,                                                |   |
|                                              |        2008                                        |       2008 |        2007 |        2007 |        2007                    |       2007          |        2006              |        2006                    |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Net      Sales                                    | $50,841,096                                                                           | $44,459,837                              | $49,407,689                                    | $49,010,330                                    | $54,734,060                                                       | $49,890,362                                       | $65,989,744                                                 | $69,617,579                                                       |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Gross      Profit                                 |   $8,165,618                                                                |   $7,196,282                   |   $8,064,167                         |   $8,020,768                         |   $8,771,989                                            |   $7,779,977                            |   $8,516,081                                      |   $8,657,114                                            |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Income      (Loss) from continuing operations     | $(8,399,352)      (a)                                                                 |    $(594,719)             |       $39,216    |    $(180,734)                   |      $407,843                            |    $(746,500)                 |     $140,063                       |      $261,075                       |   |
| (Loss)      earnings from discontinued operations |                                                                                  |                                     |                                           |                                           | $(3,183,401)      (b)                                             |                                              |                                                        |                                                              |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Net      Income (Loss)                            | $(8,399,352)      (a)                                                                 |    $(594,719)             |       $39,216    |    $(180,734)                   | $(2,775,558)      (b)                                             |   $(746,500)                            |     $140,063                            |      $261,075                            |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Income      (Loss) from continuing operations     |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Basic                                             | $(1.34)                                                                               | $(.09)                                   | $.01                                           | $(.03)                                         |           $0.06 |        $(0.12) |          $0.02 |           $0.04 |   |
| Diluted                                           | $(1.34)                                                                               | $(.09)                                   | $.01                                           | $(.03)                                         |           $0.06 |        $(0.12) |          $0.02 |           $0.04 |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| (Loss)      earnings from discontinued operations |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Basic                                             |                                                                                  |                                     |                                           |                                           |          $(0.51)     |                                              |                                                        |                                                              |   |
| Diluted                                           |                                                                                  |                                     |                                           |                                           |          $(0.50)     |                                              |                                                        |                                                              |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Income      (Loss) Per Share                      |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Basic                                             | $(1.34)                                                                               | $(.09)                                   | $.01                                           | $(.03)                                         |          $(0.45)     |        $(0.12) |         $0.02       |          $0.04       |   |
| Diluted                                           | $(1.34)                                                                               | $(.09)                                   | $.01                                           | $(.03)                                         |          $(0.44)     |        $(0.12) |         $0.02       |          $0.04       |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Weighted      Shares Outstanding                  |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |
| Basic                                             | 6,294,332                                                                             | 6,294,332                                | 6,294,332                                      | 6,294,332                                      |     6,294,332                                 |   6,294,232                             |   6,294,332                                       |    6,294,332                                       |   |
| Diluted                                           | 6,294,332                                                                             | 6,294,332                                | 6,294,332                                      | 6,294,332                                      |     6,315,464                                 |   6,294,332                             |   6,369,866                                       |    6,373,733                                       |   |
|                                              |                                                                                  |                                     |                                           |                                           |                                                              |                                              |                                                        |                                                              |   |   |

----

----

----

| Column A    | Column B        | Column      C                          | Column D                                                                                                             | Column E                                                                               |
|-------------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
|        |            | Additions                              |                                                                                                                 |                                                                                   |
|        |            | (1)                                                                                                                                                                 | (2)                                                                                                                  |                                                                                   |   |
|        |            |                                                                                                                                                                |          Charged to                                                                                   |                                                                                   |   |
|        | Balance      at | Charged      to                                                                                                                                                     | other                                                                                                                |                                                                                   | Balance |
|        | beginning       | costs      and                                                                                                                                                      | accounts -                                                                                                           | Deductions      -                                                                      | at      end of |
| Description | of period       |  expenses                                                                                                                                                 |           describe              | describe              |   period   |

| Allowance      for doubtful accounts             |                                   |                                   |                                                                       |                                                                       |                   |
|--------------------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|------------------------|
| Year      ended June 30, 2008                    | $1,029,000                             | $  376,000                   | $-                                                                         | $      3,000 (b)                                                           | $1,402,000             |
|                                             |                                   |                                   |                                                                       |                                                                       |                   |
| Year      ended June 30, 2007                    | $          491,000 | $              544,000  | $42,000 (a)                                                                | $ 48,000 (b)                                                          | $  1,029,000 |
|                                             |                                   |                                   |                                                                       |                                                                       |                   |
| Deferred      tax asset                          |                                   |                                   |                                                                       |                                                                       |                   |
|     valuation      allowance |                                   |                                   |                                                                       |                                                                       |                   |
| Year      ended June 30, 2008                    | $7,920,000                             | $    46,000             | $      -       | $      -       | $7,966,000             |
|                                             |                                   |                                   |                                                                       |                                                                       |                   |
| Year      ended June 30, 2007                    | $   6,394,000                | $ 1,526,000                            | $      -       | $      -       | $  7,920,000      |
|                                             |                                   |                                   |                                                                       |                                                                       |                   |

----