**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K/A**

**Amendment      No. 1**

| [                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)                                                                                                                                                                 |

----

**DOCUMENTS      INCORPORATED BY REFERENCE.**

----

**EXPLANATORY      NOTE**

**PART      III**

**Item      10.  Directors and Executive Officers of the      Registrant.**

| Name                                                                                                                                                                                                                                                                                                                                                                                            | Age                                              | Position                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|-----------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                 |                                                  |                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Joel                H.                Girsky                                                            | 68                                               | Chairman                of the Board, CEO, President and Treasurer                |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Joseph                F.                Oliveri                                                         | 58                                               | Vice                Chairman of the Board and Executive Vice President            |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Charles                B.                Girsky                                                         | 73                                               | Executive                Vice President and Director                              |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Jeffrey                D.                Gash                                                           | 55                                               | Executive                Vice President,Finance,                CFO and Secretary |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Gary                Giordano                                                                            | 50                                               | Executive                Vice President                                           |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Don                Ackley                                                                               | 54                                               | Director                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Marvin                Meirs                                                                             | 65                                               | Director                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Neil                Rappaport                                                                           |                   61    | Director                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                                                              |
| Robert                J.                Waldman                                                         | 72                                               | Director                                                                          |

*Joel      H. Girsky*

----

*Joseph      F. Oliveri*

*Charles      B. Girsky*

*Jeffrey      D. Gash*

*Gary      Giordano*

*Don      Ackley*

*Marvin      Meirs*

*Neil      Rappaport*

*Robert      J. Waldman*

----

**Section      16(a) Beneficial Ownership Reporting Compliance**

**Audit      Committee and Audit Committee Expert**

**Code      of Ethics**

**Item      11.  Executive Compensation.**

**EXECUTIVE      COMPENSATION DISCUSSION AND ANALYSIS**

----

**Introduction**

**Philosophy**

**Components      of Executive Compensation**

**Cash-Based      Compensation: **

----

**Equity-Based      Compensation:**

**Compensation      of the Chief Executive Officer**

----

**Tax      Deductibility of Executive Compensation**

**Other      Benefits**

**Compensation      Committee Report**

**COMPENSATION      COMMITTEE**

**Don      Ackley**

**Marvin      Meirs**

**Robert      J.      Waldman**

**Neil      Rappaport,      Chairman**

**Summary      of Cash and Certain Other Compensation**

----

**SUMMARY      COMPENSATION TABLE**

|  **Name                and****Principal                Position** | **Fiscal                Year** | **Salary($)** |    **Stock                Awards ($) (1)** | **Non-Equity                Incentive Plan Compensation ($)** | **All                Other****Compensation****($)                (2)** | **Restricted                Stock****Awards                ($) (3)** |     **Total                Compensation** |
|------------------------------------------------------------------------|--------------------------------|---------------|-----------------------------------------------------------|---------------------------------------------------------------|------------------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------------------------------------|
|                                                                        |                                |               |                                                           |                                                               |                                                                        |                                                                      |                                                               |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Joel                H. Girsky                                          | 2007                           | 334,688       | --                                                        | --                                                            | 53,032                                                                 | --                                                                   | 387,720                                                       |
| Chairman                of the Board, CEO,                             |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| President,                and Treasurer                                |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Joseph                F. Oliveri                                       | 2007                           | 288,751       | 6,458                                                     | 98,328                                                        | 774                                                                    | --                                                                   | 394,311                                                       |
| Vice                Chairman and                                       |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Executive                Vice President                                |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Charles                B. Girsky                                       | 2007                           | 233,125       | --                                                        | --                                                            | 2,985                                                                  | --                                                                   | 236,110                                                       |
| Executive                Vice President                                |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Jeffrey                D. Gash                                         | 2007                           | 189,000       | 13,633                                                    | --                                                            | 2,325                                                                  | --                                                                   | 204,958                                                       |
| Executive                Vice President,                               |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Finance,                CFO and Secretary                              |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
| Gary                Giordano                                           | 2007                           | 192,500       | 6,816                                                     | 17,983                                                        | 2,400                                                                  | --                                                                   | 219,699                                                       |
| Executive                Vice President                                |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |
|                                                                   |                           |          |                                                      |                                                          |                                                                   |                                                                 |                                                          |

|   | (1) | Includes                the amounts recognized as expense by the Company with respect to                stock                awards in Fiscal 2007 in accordance with FAS 123(R). Assumptions                used in                the calculation of these amounts are included in Note B (17) of the                Notes                to Consolidated Financial Statements included in the Company’s Annual                Report on Form 10-K, for the year ended June 30,                2007. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) |  Includes                401(k) plan matching contributions, premiums paid on group term life                insurance, and, in the case of Mr. Joel Girsky, deferred compensation                accrued in connection with his employment agreement with the                Company.  401(k) matching contributions for Fiscal 2007 for the                Named Executive Officers were as follows: Mr. Joel Girsky – $1,813, Mr.                Oliveri – $0, Mr. Charles Girsky – $1,749, Mr. Gash – $1,911 and Mr.                Giordano – $2,130.  Premiums paid on group term life insurance                for Fiscal 2007 for the Named Executive Officers were as follows:                Mr. Joel                Girsky – $1,219, Mr. Oliveri – $774, Mr. Charles Girsky – $1,236, Mr. Gash                – $414 and Mr. Giordano – $270.  $50,000 in deferred                compensation was accrued in Fiscal 2007 in connection with Mr. Joel                Girsky’s employment agreement with the                Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On                June 9, 1997, the Board of Directors awarded an aggregate of 97,500                shares                of Common Stock under the Company’s Restricted Stock Plan to its executive                officers as follows: 37,500 shares of Common Stock to Mr. Joel Girsky,                37,500 shares of Common Stock to Mr. Charles Girsky, 15,000 shares                of                Common Stock to Mr. Gash and 3,750 shares of Common Stock to Mr.                Giordano,                as adjusted to give effect to a 3-for-2 stock split of the Common                Stock                effective on July 24, 2000. The plan was approved by the Company’s                shareholders on December 9, 1997.  The awards vested in                one-quarter increments annually.  Accordingly, as of June 30,                2007, all of the aforementioned awards were vested.  The value                of the aggregate restricted stock holdings of these individuals at                June                30, 2007 was as follows: $62,000 for Mr. Joel Girsky, $62,000 for                Mr.                Charles Girsky, $24,800 for Mr. Gash and $6,200 for Mr.                Giordano.  These figures are based upon the fair market value                per share of the Company’s Common Stock at June 30, 2007, minus the                purchase price of such awards.  The closing sale price for the                Company’s Common Stock as of June 30, 2007 on the Nasdaq National Market                was $2.32. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | **Employment                Agreements** |
|--------|------------------------------------------|

----

----

**Nonqualified      Deferred Compensation**

----

|  **Name**             | **Executive                Contributions in 2007 ($)** | **Registrant                Contributions    in 2007 ($)** | **Aggregate                Earnings     in 2007 ($)** | **Aggregate                Withdrawals/ Distributions ($)** | **Aggregate                Balance at June 30, 2007 ($)** |
|----------------------------|--------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------|
|                            |                                                        |                                                                                |                                                                                |                                                             |                                                           |
| Joel                Girsky | --                                                     | 50,000                                                                         | --                                                                             | --                                                          | 1,150,000                                                 |

|   |   |
|--------|--------|
| (1)   | As                described under “Executive Compensation – Employment Agreements”, Mr.                Girsky is entitled to deferred compensation of $50,000 for each year                of                employment beginning July 1, 1984. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Grants      of Plan-Based Awards in 2007**

**GRANTS      OF PLAN-BASED AWARDS**

|    **Name**           |   **Grant                Date** | **Actual                Payout Under Non-Equity Incentive Plan Awards (1)                ($)** | **All                other Option Awards: Number of Securities Underlying Options (2)                (#)** | ** Exercise                or Base Price of Option Awards ($)** |
|--------------------------------------|-------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|
|                                      |                                           |                                                                                                |                                                                                                            |                                                                      |
| Joel                H.Girsky         |                                      | --                                                                                             | --                                                                                                         |                                                                 |
| Joseph                F. Oliveri     |  November                19, 2006    | 98,328                                                                                         |  18,000                                                                                               |  3.49                                                           |
| Charles                B. Girsky     |                                      | --                                                                                             |                                                                                                       |                                                                 |
| Jeffrey                D. Gash  |  November                19, 2006    | --                                                                                             |  38,000                                                                                               |  3.49                                                           |
| Gary                Giordano         |  November                19, 2006    | 17,983                                                                                         |  19,000                                                                                               |  3.49                                                           |

|   |   |
|--------|--------|
| (1) | These                amounts reflect the cash portion of the annual bonus, which was earned                and  paid in Fiscal 2007. These amounts are also set forth in                the Summary Compensation Table. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) |  Stock                options include non-qualified options that were granted in conjunction                with the  2000 Stock Option Plan. These stock options vest in                25% increments over four years and expire ten years for the date                of                grant. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Outstanding      Equity Awards a Fiscal Year-End**

----

|                             | **Option                Awards**                                                                      |                                                                                                        |                                                                         |                                                                                            | **Stock                Awards**                                              |                                                                                                                                                                                                       |
|----------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                       |                                                                                                        |                                                                         |                                                                                            |                                                                              |                                                                                                                                                                                                       |
|    **Name**       | **Number                of Securities underlying Unexercised Options (#)                Exercisable** | **Number                of Securities underlying Unexercised Options (#) Unexercisable                (1)** |   **Option                ExercisePrice                ($)**  |    **Option                Expiration Date**                                     |  **Number                of Shares of Restricted Stock – Vested** | **                Market                Value of Shares of Restricted Stock –                Vested  ($)** |
|                                  |                                                                                                       |                                                                                                             |                                                                              |                                                                                                 |                                                                              |                                                                                                                                                                                                            |
| Joel                H. Girsky    | 50,00025,000                                                                                          |                                                                                                        | 8.002.35                                                                     | December                11, 2010October                31, 2012                                 | 37,500                                                                       | 87,000                                                                                                                                                                                                     |
| Joseph                F. Oliveri | 15,00025,000                                                                                          |   18,000                                                                                          | 8.002.353.49                                                                 | December                11, 2010October                31, 2012November                19, 2016 |                                                                         |                                                                                                                                                                                                       |
| Charles                B. Girsky | 25,00025,000                                                                                          |                                                                                                        | 8.002.35                                                                     | December                11, 2010October                31, 2012                                 | 37,500                                                                       | 87,000                                                                                                                                                                                                     |
| Jeffrey                D. Gash   | 15,00025,000                                                                                          |   38,000                                                                                          | 8.002.353.49                                                                 | December                11, 2010October                31, 2012November                19, 2016 | 15,000                                                                       | 34,800                                                                                                                                                                                                     |
| Gary                Giordano     | 15,00025,000                                                                                          |   19,000                                                                                          | 8.002.353.49                                                                 | December                11, 2010October                31, 2012November                19, 2016 | 3,750                                                                        | 8,700                                                                                                                                                                                                      |

|   |   |
|--------|--------|
|   | (1)                These options were granted on November 19, 2006 and vest in 25% increments                over four years beginning on November 19,                2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Option      Exercises and Stock Vested**

----

**Potential      Payments Upon Termination and Change in Control**

| **                                    Name** | **    Event**            | **    Salary                ($)** | **        Bonus                ($)** | **Deferred                Compensation ($)** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|-------------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------|
|                                                                                                                                                                                                                                  |                                              |                                                       |                                                                              |                                              |
| Joel                H. Girsky                                                                                                                                                                                                    | Termination                without cause (1) | 1,125,000                                             | --                                                                           | 1,300,000                                    |
|                                                                                                                                                                                                                             | Termination                for cause         | --                                                    | --                                                                           | 1,150,000                                    |
|                                                                                                                                                                                                                             | Death                                        | 375,000                                               | --                                                                           | 1,150,000                                    |
|                                                                                                                                                                                                                             | Disability                                   | 687,500                                               | --                                                                           | 1,150,000                                    |
|                                                                                                                                                                                                                             | Change                in control             | 973,990                                               | --                                                                           | 1,150,000                                    |
| Joseph                F. Oliveri                                                                                                                                                                                                 | Termination                without cause (1) | 300,000                                               | 131,909                (2)                                                   | --                                           |
|                                                                                                                                                                                                                             | Termination                for cause         | --                                                    | 33,581                                                                       | --                                           |
|                                                                                                                                                                                                                             | Death                                        | --                                                    | 33,581                                                                       | --                                           |
|                                                                                                                                                                                                                             | Disability                                   | 50,000                                                | 33,581                                                                       | --                                           |
|                                                                                                                                                                                                                             | Change                in control             | --                                                    | 33,581                                                                       | --                                           |
| Charles                B. Girsky                                                                                                                                                                                                 | Termination                without cause (1) | 250,000                                               | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Termination                for cause         | --                                                    | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Death                                        | 250,000                                               | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Disability                                   | 125,000                                               | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Change                in control             | 561,044                                               | --                                                                           | --                                           |
| Jeffrey                D. Gash                                                                                                                                                                                                   | Termination                without cause (1) | 585,000                                               | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Termination                for cause         | --                                                    | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Death                                        | 750,000                                               | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Disability                                   | 97,500                                                | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Change                in control             | 327,831                                               | --                                                                           | --                                           |
| Gary                Giordano                                                                                                                                                                                                     | Termination                without cause     | --                                                    | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Termination                for cause         | --                                                    | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Death                                        | 750,000                                               | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Disability                                   | --                                                    | --                                                                           | --                                           |
|                                                                                                                                                                                                                             | Change                in control (3)         | 380,962                                               | --                                                                           | --                                           |

----

| (1)   | Assumes                notice of termination of applicable employment agreement was provided                on                June 30, 2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (2) |  Bonus                amount due would be fourth quarter bonus for Fiscal 2007. For purposes                of                this table, the same bonus amount was assumed for Fiscal                2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) |  Assumes                a change in control event and the termination of Mr. Giordano’s                employment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

**Director      Compensation**

*            *

| **                                          Name** | **Fees                earned or paid in cash ($)** | **Stock                Awards ($) (1)** | **Total                ($)**  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|-----------------------------------------|------------------------------------|
|                                                                                                                                                                                                                                                                      |                                                    |                                         |                                    |
| Don                Ackley                                                                                                                                                                                                                                            | 7,500                                              | 1,344                                   | 8,844                              |
| Marvin                Meirs                                                                                                                                                                                                                                          | 7,500                                              | 2,688                                   | 10,188                             |
| Neil                Rappaport                                                                                                                                                                                                                                        | 12,500                                             | 672                                     | 13,172                             |
| Robert                Waldman                                                                                                                                                                                                                                        | 15,000                                             | 672                                     | 15,672                             |

| (1) | Includes                the amounts recognized as expense by the Company with respect to                stock                awards in Fiscal 2007 in accordance with FAS 123(R). Assumptions                used in                the calculation of these amounts are included in Note B (17) of the                Notes                to Consolidated Financial Statements included in the Company’s Annual                Report on Form 10-K, for the year ended June 30,                2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**COMPENSATION      COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION**

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

----

|  **Name                and Address of****Beneficial                Owner (1)**                                                               | **Amount                and Nature****of****Beneficial                Ownership** |  **Percent                of Class**** Beneficially                Owned (2)**  |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                                                                                                                   |                                                                                   |                                                                                                |
| Joel                H. Girsky                                                                                                                     | 1,031,240                (3)                                                      | 16.2%                                                                                          |
|                                                                                                                                              |                                                                              |                                                                                           |
| Joseph                F. Oliveri                                                                                                                  | 40,000                (4)                                                         | **                                                                                             |
|                                                                                                                                              |                                                                              |                                                                                           |
| Charles                B. Girsky                                                                                                                  | 476,961                (5)                                                        | 7.5%                                                                                           |
|                                                                                                                                              |                                                                              |                                                                                           |
| Don                Ackley                                                                                                                         | -                                                                                 | **                                                                                             |
|                                                                                                                                              |                                                                              |                                                                                           |
| Marvin                Meirs                                                                                                                       | 2,700                                                                             | **                                                                                             |
|                                                                                                                                              |                                                                              |                                                                                           |
| Jeffrey                D. Gash                                                                                                                    | 72,298                (6)                                                         | 1.1%                                                                                           |
|                                                                                                                                              |                                                                              |                                                                                           |
| Gary                Giordano                                                                                                                      | 43,750                (7)                                                         | **                                                                                             |
|                                                                                                                                              |                                                                              |                                                                                           |
| Robert                J. Waldman                                                                                                                  | 10,500                (8)                                                         | **                                                                                             |
|                                                                                                                                              |                                                                              |                                                                                           |
| Neil                Rappaport                                                                                                                     | 7,500                (9)                                                          | **                                                                                             |
|                                                                                                                                              |                                                                              |                                                                                           |
| Dimensional                Fund Advisors1299                Ocean Avenue11th                FloorSanta                Monica, CA  90401 | 413,461                (10)                                                       | 6.6%                                                                                           |
|                                                                                                                                              |                                                                              |                                                                                           |
| Luis                Antonio Hernandez3069                Misty HarbourLas                Vegas, NV 89117                                          | 596,526                (11)                                                       | 9.5%                                                                                           |
|                                                                                                                                              |                                                                              |                                                                                           |
| All                directors and executive officers as a group (9 persons)                                                                        | 1,684,949                (12)                                                     | 25.7%                                                                                          |

| ** | Less                than one percent |
|----|--------------------------------------|

| (1) | Unless                otherwise indicated, the address of each person listed is c/o Jaco                Electronics, Inc., 145 Oser Avenue, Hauppauge, New York,                11788. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Assumes                a base of 6,294,332 shares of Common Stock outstanding, before any                consideration is given to outstanding                options. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3)   | Includes                (i) 75,000 shares of Common Stock acquirable pursuant to options                presently                exercisable and granted under the Company’s 2000 Stock Option Plan, and                (ii) 37,500 shares of Common Stock awarded under the Company’s Restricted                Stock Plan. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes                40,000 shares of Common Stock acquirable pursuant to options presently                exercisable and granted under the Company’s 2000 Stock Option                Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes                (i) 320,761 shares of Common Stock owned by the Girsky Family Trust,                of                which Mr. Charles Girsky is a co-trustee, with shared voting and                dispositive power over such shares,  (ii) 50,000 shares of                Common Stock acquirable pursuant to options presently exercisable                and                granted under the Company’s 2000 Stock Option Plan, and (iii) 37,500                shares of Common Stock awarded under the Company’s Restricted Stock                Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes                (i) 40,000 shares of Common Stock acquirable pursuant to options                presently                exercisable and granted under the Company’s 2000 Stock Option Plan, and                (ii) 15,000 shares of Common Stock awarded under the Company’s Restricted                Stock Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes                40,000 shares of Common Stock acquirable pursuant to options presently                exercisable and granted under the Company’s 2000 Stock Option                Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes                7,500 shares of Common Stock acquirable pursuant to options presently                exercisable and granted under the Company’s 2000 Stock Option                Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes                7,500 shares of Common Stock acquirable pursuant to options presently                exercisable and granted under the Company’s 2000 Stock Option                Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | These                securities are held in investment advisory accounts of Dimensional                Fund                Advisors, Inc. This information is based upon an amendment to Schedule                13G                dated February 1, 2007, filed with the Securities and Exchange                Commission (the “SEC”) and information made available to the                Company. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | The                information is based upon a Schedule 13G filed with the SEC dated                February                28, 2006, and information made available to the                Company. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Includes                260,000 shares of Common Stock acquirable pursuant to options presently                exercisable and 93,750 shares of Common Stock awarded under the Company’s                Restricted Stock Plan. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **Item                13.  Certain Relationships and Related                Transactions.** |
|--------|-------------------------------------------------------------------------------------------------------|

----

**Review,        Approval or Ratification of Transactions with Related        Parties**

**Item      14.  Principal Accountant Fees and Services.**

**Audit      Fees**

**Audit-Related      Fees**

**Tax      Fees**

**All      Other Fees**

**Audit      Committee Pre-Approval Policies and Procedures**

----

**PART      IV**

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

| (a) | (3) | See                Exhibit Index on page 20 of this report for a list of the exhibits                furnished as part of this report. |
|-----|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Joel                H. Girsky, Chairman, CEO, President          and                Treasurer (Principal Executive |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Officer) |
|--------|----------|

|   | By: | /s/                Jeffrey D. Gash |   |
|--------|-----|------------------------------------|--------|

|   | Jeffrey                D. Gash, Executive Vice President - |
|--------|------------------------------------------------------------|

|   | Finance,                CFO and Secretary (Principal                Financial and Accounting |
|--------|---------------------------------------------------------------------------------------------------|

| **                                                                                                     ** | Officer) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|

----

**Exhbit      No.    Exhibit**

| 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. |
|------|------------------------------------------------------------------------------------------------------|

----