----

----

----

----

| Statement of Operations Data                                                         |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |
|--------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|---------|-------------------|--------|--------|-------------------|--------|--------|-------------------|---------|
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |
| For the years ended(Amounts in thousands, except per share data)                     |   | June 28, 2009 |   |   | June 29, 2008 |   |    | July 1, 2007 |   |   | July 2, 2006 |   |   | July 3, 2005 |    |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |
| Net sales                                                                            |   | $                  | 98,221 |   |               | $      | 100,039 |              |   | $      | 87,739            |   |   | $                 | 83,102  |   |   | $ | 75,999 |   |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Gross profit                                                                         |   |               | 33,324 |   |               |   | 29,444  |              |   |   | 28,097            |   |   |              | 26,687  |   |   |   | 24,035 |   |
| Gross profit %                                                                       |   |               | 33.9   | %      |               |   | 29.4    | %                 |   |   | 32.0              | %      |   |              | 32.1    | % |   |   | 31.6 | % |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Income (loss) from operations                                                        |   | $                  | 6,146  |   |               | $      | 6,783   |              |   | $      | (702              | )      |   | $                 | (2,877  | ) |   | $ | (4,133 | ) |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Net income (loss):                                                                   |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Continuing operations                                                                |   | $                  | 4,969  |   |               | $      | 6,535   |              |   | $      | (2,770            | )      |   | $                 | (7,091  | ) |   | $ | (5,537 | ) |
| Discontinued operations                                                              |   |               | (1,686 | )      |               |   | 3,484   |              |   |   | (5,222            | )      |   |              | (39,758 | ) |   |   | (21,333 | ) |
| Net income (loss)                                                                    |   | $                  | 3,283  |   |               | $      | 10,019  |              |   | $      | (7,992            | )      |   | $                 | (46,849 | ) |   | $ | (26,870 | ) |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Per common share - basic and diluted:                                                |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Income (loss) from continuing operations  - basic                          |   | $                  | 0.16   |   |               | $      | 0.22    |              |   | $      | (0.09             | )      |   | $                 | (0.25   | ) |   | $ | (0.19 | ) |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Income (loss) from continuing operations  - diluted                        |   | $                  | 0.16   |   |               | $      | 0.21    |              |   | $      | (0.09             | )      |   | $                 | (0.25   | ) |   | $ | (0.19 | ) |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Income (loss) from discontinued operations  - basic  and diluted |   | $                  | (0.05  | )      |               | $      | 0.11    |              |   | $      | (0.18             | )      |   | $                 | (1.37   | ) |   | $ | (0.75 | ) |
|                                                                                 |   |               |   |   |               |   |    |              |   |   |              |   |   |              |    |   |   |   |   |   |
| Income (loss) - basic and diluted                                                    |   | $                  | 0.11   |   |               | $      | 0.33    |              |   | $      | (0.27             | )      |   | $                 | (1.62   | ) |   | $ | (0.94 | ) |

| Balance Sheet Data                        |   |               |    |   |               |   |   |              |   |   |              |   |   |              |    |
|-------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|---------|
|  (Amounts in thousands)              |   | June 28, 2009 |    |   | June 29, 2008 |   |   | July 1, 2007 |   |   | July 2, 2006 |   |   | July 3, 2005 |    |
|                                      |   |               |    |   |               |   |   |              |   |   |              |   |   |              |    |
| Total assets                              |   | $                  | 84,080  |   |               | $      | 91,547 |              |   | $      | 104,738           |   |   | $                 | 233,026 |   |   | $ | 229,180 |   |
| Long-term debt, including current portion |   |               | 15      |   |               |   | 21     |              |   |   | 32                |   |   |              | 27,455  |   |   |   | 3,980 |   |
| Other long term obligations               |   |               | 1,615   |   |               |   | 1,947  |              |   |   | 1,709             |   |   |              | 1,106   |   |   |   | - |   |
| Pension benefit obligations               |   |               | 76,849  |   |               |   | 37,638 |              |   |   | 15,965            |   |   |              | 45,494  |   |   |   | 70,568 |   |
| Stockholders' equity (deficit)            |   |               | (11,291 | )      |               |   | 29,801 |              |   |   | 41,473            |   |   |              | 42,908  |   |   |   | 46,060 |   |

----

----

----

----

| Fiscal Year Ended       |   | June 28, 2009 |   |   | June 29, 2008 |   |
|-------------------------|--------|---------------|--------|--------|---------------|--------|
|                    |   | Sales         |   |   | % of Sales    |   |   | Sales |   |   | % of Sales |   |
| Material handling       |   | $             | 67.0   |   |          |   | 68 | % |   | $ | 69.7 |   |   |   | 70 | % |
| Elevator motion control |   |          | 19.9   |   |          |   | 20 | % |   |   | 19.2 |   |   |   | 19 | % |
| Energy systems          |   |          | 11.3   |   |          |   | 12 | % |   |   | 11.1 |   |   |   | 11 | % |
| Total net sales         |   | $             | 98.2   |   |          |   | 100 | % |   | $ | 100.0 |   |   |   | 100 | % |

----

----

| Fiscal Year Ended       |   | June 29, 2008 |   |   | July 1, 2007 |   |
|-------------------------|--------|---------------|--------|--------|--------------|--------|
|                    |   | Sales         |   |   | % of Sales   |   |   | Sales |   |   | % of Sales |   |
| Material handling       |   | $             | 69.7   |   |         |   | 70 | % |   | $ | 61.8 |   |   |   | 70 | % |
| Elevator motion control |   |          | 19.2   |   |         |   | 19 | % |   |   | 19.0 |   |   |   | 22 | % |
| Energy systems          |   |          | 11.1   |   |         |   | 11 | % |   |   | 6.9 |   |   |   | 8 | % |
| Total net sales         |   | $             | 100.0  |   |         |   | 100 | % |   | $ | 87.7 |   |   |   | 100 | % |

----

----

|                      |   | Less than |   |   | 1 to 3 |   |   | 3 to 5 |   |   | More than |   |   |   |   |
|---------------------------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
|                      |   | 1 Year    |   |   | Years  |   |   | Years  |   |   | 5 Years   |   |   | Total  |   |
| Pension funding           |   | $         | 12,543 |   |   | $      | 41,380 |   |   | $      | 44,410    |   |   | $      | 16,595 |   |   | $ | 114,928 |   |
| Operating leases          |   |      | 2,711  |   |   |   | 1,743  |   |   |   | 769       |   |   |   | 348    |   |   |   | 5,571 |   |
| Purchase obligations      |   |      | 8,442  |   |   |   | -      |   |   |   | -         |   |   |   | -      |   |   |   | 8,442 |   |
| Enrange acquisition       |   |      | 75     |   |   |   | -      |   |   |   | -         |   |   |   | -      |   |   |   | 75 |   |
| Capital lease obligations |   |      | 11     |   |   |   | 4      |   |   |   | -         |   |   |   | -      |   |   |   | 15 |   |
| Total                     |   | $         | 23,782 |   |   | $      | 43,127 |   |   | $      | 45,179    |   |   | $      | 16,943 |   |   | $ | 129,031 |   |

----

----

----

----

| For the years ended                                            |   | June 28, |   |   | June 29, |   |    | July 1, |   |
|----------------------------------------------------------------|--------|----------|--------|--------|----------|--------|---------|---------|--------|
| (Amounts in thousands, except per share data)                  |   | 2009     |   |   | 2008     |   |    | 2007    |   |
|                                                           |   |     |   |   |     |   |    |    |   |
| Net sales                                                      |   | $        | 98,221 |   |     | $      | 100,039 |    |   | $ | 87,739 |   |
| Cost of sales                                                  |   |     | 64,897 |   |     |   | 70,595  |    |   |   | 59,642 |   |
| Gross profit                                                   |   |     | 33,324 |   |     |   | 29,444  |    |   |   | 28,097 |   |
| Research and development                                       |   |     | 3,522  |   |     |   | 3,179   |    |   |   | 4,231 |   |
| Pension expense                                                |   |     | 3,385  |   |     |   | 186     |    |   |   | 1,978 |   |
| Sales, general and administrative                              |   |     | 20,271 |   |     |   | 19,296  |    |   |   | 22,590 |   |
| Income (loss) from operations                                  |   |     | 6,146  |   |     |   | 6,783   |    |   |   | (702 | ) |
| Non operating expense (income):                                |   |     |   |   |     |   |    |    |   |   |   |   |
|   Interest income                                    |   |     | (138   | )      |     |   | (1,019  | )       |   |   | (1,951 | ) |
|   Interest expense                                   |   |     | -      |   |     |   | 249     |    |   |   | 2,401 |   |
|   Other expense                                      |   |     | -      |   |     |   | -       |    |   |   | 325 |   |
| Income (loss) from continuing operations                       |   |     |   |   |     |   |    |    |   |   |   |   |
| before provision for income taxes                              |   |     | 6,284  |   |     |   | 7,553   |    |   |   | (1,477 | ) |
| Provision for income taxes                                     |   |     | 1,315  |   |     |   | 1,018   |    |   |   | 1,293 |   |
| Income (loss) from continuing operations                       |   |     | 4,969  |   |     |   | 6,535   |    |   |   | (2,770 | ) |
| Income (loss) from discontinued operations, net of taxes       |   |     | (1,686 | )      |     |   | 3,484   |    |   |   | (5,222 | ) |
| Net income (loss)                                              |   | $        | 3,283  |   |     | $      | 10,019  |    |   | $ | (7,992 | ) |
|                                                           |   |     |   |   |     |   |    |    |   |   |   |   |
| Per common share basic and diluted:                            |   |     |   |   |     |   |    |    |   |   |   |   |
| Income (loss) from continuing operations - basic               |   | $        | 0.16   |   |     | $      | 0.22    |    |   | $ | (0.09 | ) |
| Income (loss) from continuing operations - diluted             |   | $        | 0.16   |   |     | $      | 0.21    |    |   | $ | (0.09 | ) |
| Income (loss) from discontinued operations - basic and diluted |   | $        | (0.05  | )      |     | $      | 0.11    |    |   | $ | (0.18 | ) |
| Net income (loss) - basic and diluted                          |   | $        | 0.11   |   |     | $      | 0.33    |    |   | $ | (0.27 | ) |
|                                                           |   |     |   |   |     |   |    |    |   |   |   |   |
| Weighted average shares outstanding - basic                    |   |     | 30,851 |   |     |   | 30,367  |    |   |   | 29,435 |   |
| Weighted average shares outstanding - diluted                  |   |     | 30,942 |   |     |   | 30,593  |    |   |   | 29,435 |   |

----

| As of                                                                       |   | June 28, |     |   | June 29, |   |
|-----------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
| (Amounts in thousands)                                                      |   | 2009     |     |   | 2008     |   |
|                                                                        |   |     |     |   |     |   |
| Assets                                                                      |   |     |     |   |     |   |
| Current assets:                                                             |   |     |     |   |     |   |
| Cash                                                                        |   | $        | 18,097   |   |     | $      | 15,210 |   |
| Restricted cash                                                             |   |     | 262      |   |     |   | 256 |   |
| Accounts receivable, less allowance for doubtful accounts of $283           |   |     |     |   |     |   |   |   |
| in 2009 and $517 in 2008                                                    |   |     | 11,598   |   |     |   | 18,600 |   |
| Inventories                                                                 |   |     | 12,617   |   |     |   | 12,525 |   |
| Deferred income taxes                                                       |   |     | -        |   |     |   | 107 |   |
| Prepaid expenses and other current assets                                   |   |     | 1,242    |   |     |   | 2,026 |   |
| Assets held for sale                                                        |   |     | -        |   |     |   | 1,288 |   |
| Total current assets                                                        |   |     | 43,816   |   |     |   | 50,012 |   |
| Property, plant and equipment:                                              |   |     |     |   |     |   |   |   |
| Buildings and improvements                                                  |   |     | 1,966    |   |     |   | 1,978 |   |
| Machinery and equipment                                                     |   |     | 17,982   |   |     |   | 18,169 |   |
| Less accumulated depreciation                                               |   |     | 16,299   |   |     |   | 16,054 |   |
| Net property, plant and equipment                                           |   |     | 3,649    |   |     |   | 4,093 |   |
| Goodwill                                                                    |   |     | 30,359   |   |     |   | 30,464 |   |
| Other assets                                                                |   |     | 6,256    |   |     |   | 6,978 |   |
| Total assets                                                                |   | $        | 84,080   |   |     | $      | 91,547 |   |
|                                                                        |   |     |     |   |     |   |   |   |
| Liabilities and Stockholders' Equity                                        |   |     |     |   |     |   |   |   |
| Current liabilities:                                                        |   |     |     |   |     |   |   |   |
| Accounts payable                                                            |   | $        | 5,716    |   |     | $      | 10,407 |   |
| Accrued liabilities                                                         |   |     | 6,313    |   |     |   | 7,740 |   |
| Current portion of long-term debt                                           |   |     | 11       |   |     |   | 9 |   |
| Total current liabilities                                                   |   |     | 12,040   |   |     |   | 18,156 |   |
| Long-term debt, net of current portion                                      |   |     | 4        |   |     |   | 12 |   |
| Long-term pension benefit obligations                                       |   |     | 76,849   |   |     |   | 37,638 |   |
| Other long-term obligations                                                 |   |     | 1,615    |   |     |   | 1,947 |   |
| Deferred income taxes                                                       |   |     | 4,863    |   |     |   | 3,993 |   |
|                                                                        |   |     |     |   |     |   |   |   |
| Commitments and contingencies                                               |   |     |     |   |     |   |   |   |
|                                                                        |   |     |     |   |     |   |   |   |
| Stockholders' Equity (Deficit):                                             |   |     |     |   |     |   |   |   |
| Common stock, $0.01 par value, 100,000 shares authorized; 30,942 and 30,620 |   |     |     |   |     |   |   |   |
| shares issued and outstanding in 2009 and 2008                              |   |     | 309      |   |     |   | 306 |   |
| Additional paid-in capital                                                  |   |     | 138,094  |   |     |   | 136,864 |   |
| Accumulated deficit                                                         |   |     | (1,521   | )      |     |   | (4,804 | ) |
| Accumulated other comprehensive loss                                        |   |     | (148,173 | )      |     |   | (102,565 | ) |
| Total stockholders' equity (deficit)                                        |   |     | (11,291  | )      |     |   | 29,801 |   |
| Total liabilities and stockholders' equity                                  |   | $        | 84,080   |   |     | $      | 91,547 |   |

----

|                             |   |         |   |   |    |   |   |       |   |   |          |   |   | Accumulated |    |   |   |   |
|----------------------------------|--------|--------------|--------|--------|---------|--------|--------|------------|--------|--------|---------------|--------|--------|-------------|---------|--------|--------|--------|
|                             |   |         |   |   |    |   |   | Additional |   |   | Retained      |   |   | Other       |    |   |   |   |
|                             |   | Common Stock |   |   | Paid-in |   |   | Earnings   |   |   | Comprehensive |   |   |        |    |
| (Amounts in thousands)           |   | Shares       |   |   | Amount  |   |   | Capital    |   |   | (Deficit)     |   |   | Loss        |    |   | Total  |   |
| Balance, July 2, 2006            |   |         | 28,712 |   |    | $      | 287    |       |   | $      | 129,473       |   |   | $           | (6,831  | )      |   | $      | (80,021 | ) |   | $ | 42,908 |   |
| Exercise of stock options        |   |         | 775    |   |    |   | 8      |       |   |   | 3,013         |   |   |        |    |   |   |   |   |   |   |   | 3,021 |   |
| Shares issued                    |   |         | 557    |   |    |   | 5      |       |   |   | (5            | )      |   |        |    |   |   |   |   |   |   |   | - |   |
| Stock-based compensation expense |   |         |   |   |    |   |   | 1,667      |   |   |          |   |   |        |    |   |   |   |   | 1,667 |   |
| Shares issued to trust           |   |         | 70     |   |    |   | 1      |       |   |   | 301           |   |   |        |    |   |   |   |   |   |   |   | 302 |   |
| Net loss                         |   |         |   |   |    |   |   |       |   |   |          |   |   |        | (7,992  | )      |   |   |   |   |   |   | (7,992 | ) |
| Translation adjustments          |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   | 59 |   |   |   | 59 |   |
| Minimum pension liability        |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   | 1,508 |   |   |   | 1,508 |   |
| Comprehensive loss               |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   | (6,425 | ) |
| Balance, July 1, 2007            |   |         | 30,114 |   |    |   | 301    |       |   |   | 134,449       |   |   |        | (14,823 | )      |   |   | (78,454 | ) |   |   | 41,473 |   |
| Exercise of stock options        |   |         | 439    |   |    |   | 4      |       |   |   | 1,710         |   |   |        |    |   |   |   |   |   |   |   | 1,714 |   |
| Stock-based compensation expense |   |         |   |   |    |   |   | 533        |   |   |          |   |   |        |    |   |   |   |   | 533 |   |
| Shares issued to trust           |   |         | 67     |   |    |   | 1      |       |   |   | 172           |   |   |        |    |   |   |   |   |   |   |   | 173 |   |
| Net Income                       |   |         |   |   |    |   |   |       |   |   |          |   |   |        | 10,019  |   |   |   |   |   |   |   | 10,019 |   |
| Translation adjustments          |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   | 131 |   |   |   | 131 |   |
| Pension adjustments              |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   | (24,242 | ) |   |   | (24,242 | ) |
| Comprehensive loss               |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   | (14,092 | ) |
| Balance, June 29, 2008           |   |         | 30,620 |   |    |   | 306    |       |   |   | 136,864       |   |   |        | (4,804  | )      |   |   | (102,565 | ) |   |   | 29,801 |   |
| Exercise of stock options        |   |         | 10     |   |    |   | -      |       |   |   | 33            |   |   |        |    |   |   |   |   |   |   |   | 33 |   |
| Shares issued                    |   |         | 205    |   |    |   | 2      |       |   |   | (2            | )      |   |        |    |   |   |   |   |   |   |   | - |   |
| Shares purchased                 |   |         | (75    | )      |    |   | (1     | )          |   |   | (180          | )      |   |        |    |   |   |   |   |   |   |   | (181 | ) |
| Stock-based compensation expense |   |         |   | -      |    |   |   | 1,104      |   |   |          |   |   |        |    |   |   |   |   | 1,104 |   |
| Shares issued to trust           |   |         | 182    |   |    |   | 2      |       |   |   | 275           |   |   |        |    |   |   |   |   |   |   |   | 277 |   |
| Net Income                       |   |         |   |   |    |   |   |       |   |   |          |   |   |        | 3,283   |   |   |   |   |   |   |   | 3,283 |   |
| Translation adjustments          |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   | (360 | ) |   |   | (360 | ) |
| Pension adjustments              |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   | (45,248 | ) |   |   | (45,248 | ) |
| Comprehensive loss               |   |         |   |   |    |   |   |       |   |   |          |   |   |        |    |   |   |   |   |   |   |   | (42,325 | ) |
| Balance, June 28, 2009           |   |         | 30,942 |   |    | $      | 309    |       |   | $      | 138,094       |   |   | $           | (1,521  | )      |   | $      | (148,173 | ) |   | $ | (11,291 | ) |

----

| For the years ended                                                               |   | June 28, |   |   | June 29, |   |    | July 1, |   |
|-----------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|---------|---------|--------|
| (Amounts in thousands)                                                            |   | 2009     |   |   | 2008     |   |    | 2007    |   |
|                                                                              |   |     |   |   |     |   |    |    |   |
| Cash flows from continuing operating activities:                                  |   |     |   |   |     |   |    |    |   |
| Net income (loss) from continuing operations                                      |   | $        | 4,969  |   |     | $      | 6,535   |    |   | $ | (2,770 | ) |
| Adjustments to reconcile net income (loss) from continuing operations to net cash |   |     |   |   |     |   |    |    |   |   |   |   |
|    provided by (used in) operating activities:                     |   |     |   |   |     |   |    |    |   |   |   |   |
|      Depreciation                                        |   |     | 1,043  |   |     |   | 1,014   |    |   |   | 1,391 |   |
|      Amortization                                        |   |     | 53     |   |     |   | 214     |    |   |   | 580 |   |
|      Write-off of deferred financing                     |   |     | -      |   |     |   | -       |    |   |   | 670 |   |
|      Pension expense                                     |   |     | 3,385  |   |     |   | 186     |    |   |   | 1,978 |   |
|      Stock based compensation expense                    |   |     | 1,104  |   |     |   | 640     |    |   |   | 1,555 |   |
|      Deferred income tax provision                       |   |     | 977    |   |     |   | 900     |    |   |   | 900 |   |
|      Changes in operating assets and liabilities         |   |     | 2,329  |   |     |   | (2,657  | )       |   |   | (3,438 | ) |
|      Cash contribution to pension fund                   |   |     | (9,422 | )      |     |   | (2,755  | )       |   |   | (30,000 | ) |
|                                                                              |   |     |   |   |     |   |    |    |   |   |   |   |
| Total adjustments                                                                 |   |     | (531   | )      |     |   | (2,458  | )       |   |   | (26,364 | ) |
| Net cash provided by (used in) continuing operating activities                    |   |     | 4,438  |   |     |   | 4,077   |    |   |   | (29,134 | ) |
|                                                                              |   |     |   |   |     |   |    |    |   |   |   |   |
| Cash flows from investing activities:                                             |   |     |   |   |     |   |    |    |   |   |   |   |
|      Proceeds from sale of business                      |   |     | 1,250  |   |     |   | -       |    |   |   | 63,546 |   |
|      Purchase of business                                |   |     | (885   | )      |     |   | (1,750  | )       |   |   | - |   |
|      Proceeds from (deposit into) escrow account         |   |     | (6     | )      |     |   | 22,596  |    |   |   | (250 | ) |
|      Capital expenditures                                |   |     | (807   | )      |     |   | (955    | )       |   |   | (1,572 | ) |
| Net cash provided by (used in) investing activities                               |   |     | (448   | )      |     |   | 19,891  |    |   |   | 61,724 |   |
|                                                                              |   |     |   |   |     |   |    |    |   |   |   |   |
| Cash flow from financing activities:                                              |   |     |   |   |     |   |    |    |   |   |   |   |
|      Proceeds from issuance of common stock              |   |     | 310    |   |     |   | 1,887   |    |   |   | 3,323 |   |
|      Purchase and retirement of treasury stock           |   |     | (181   | )      |     |   | -       |    |   |   |  - |   |
|      Repayment of long term notes                        |   |     | -      |   |     |   | -       |    |   |   | (18,000 | ) |
|      Repayments under line-of-credit agreements          |   |     | -      |   |     |   | -       |    |   |   | (9,412 | ) |
|      Borrowings under capital lease obligations          |   |     | 10     |   |     |   | -       |    |   |   | - |   |
|      Principal payments under capital lease obligations  |   |     | (16    | )      |     |   | (11     | )       |   |   | (11 | ) |
|      Increase in deferred financing costs                |   |     | -      |   |     |   | -       |    |   |   | (210 | ) |
| Net cash provided by (used in) financing activities                               |   |     | 123    |   |     |   | 1,876   |    |   |   | (24,310 | ) |
|                                                                              |   |     |   |   |     |   |    |    |   |   |   |   |
| Cash flows from discontinued operations:                                          |   |     |   |   |     |   |    |    |   |   |   |   |
|      Provided by (used in) operating activities          |   |     | (1,226 | )      |     |   | (16,038 | )       |   |   | 3,120 |   |
|      Used in investing activities                        |   |     | -      |   |     |   | -       |    |   |   | (930 | ) |
|      Used in financing activities                        |   |     | -      |   |     |   | -       |    |   |   | (5,162 | ) |
| Cash used in discontinued operations                                              |   |     | (1,226 | )      |     |   | (16,038 | )       |   |   | (2,972 | ) |
|                                                                              |   |     |   |   |     |   |    |    |   |   |   |   |
| Net increase in cash                                                              |   |     | 2,887  |   |     |   | 9,806   |    |   |   | 5,308 |   |
| Cash at the beginning of the period                                               |   |     | 15,210 |   |     |   | 5,404   |    |   |   | 96 |   |
|                                                                              |   |     |   |   |     |   |    |    |   |   |   |   |
| Cash at the end of the period                                                     |   | $        | 18,097 |   |     | $      | 15,210  |    |   | $ | 5,404 |   |

----

----

----

----

|                                                                        |   | June 28, |   |   | June 29, |   |   | July 1, |   |
|-----------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
| For the years ended                                                         |   | 2009     |   |   | 2008     |   |   | 2007    |   |
| Income (loss) from discontinued operations before interest and income taxes |   | $        | (1,729 | )      |     | $      | 3,484  |    |   | $ | (3,850 | ) |
| Loss on sale of telecom power business                                      |   |     | (342   | )      |     |   |   |    |   |   |   |   |
| Income / (loss) on sale of power electronics business                       |   |     | 385    |   |     |   | -      |    |   |   | (420 | ) |
| Interest expense, net                                                       |   |     | -      |   |     |   | -      |    |   |   | 521 |   |
| Provision for income taxes                                                  |   |     | -      |   |     |   | -      |    |   |   | 431 |   |
| Income (loss) from discontinued operations                                  |   | $        | (1,686 | )      |     | $      | 3,484  |    |   | $ | (5,222 | ) |

----

|                                                               |   | June 28, |   |   | June 29, |   |   | July 1, |   |
|--------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
| For the years ended                                                |   | 2009     |   |   | 2008     |   |   | 2007    |   |
| Net sales                                                          |   | $        | 1,503  |   |     | $      | 9,738  |    |   | $ | 16,069 |   |
|                                                               |   |     |   |   |     |   |   |    |   |   |   |   |
| Loss from discontinued operations                                  |   | $        | (94    | )      |     | $      | (1,024 | )       |   | $ | (2,416 | ) |
| Charges to adjust to fair market value                             |   |     | (342   | )      |     |   | (1,683 | )       |   |   | - |   |
| Loss from discontinued operations - telecom power systems business |   | $        | (436   | )      |     | $      | (2,707 | )       |   | $ | (2,416 | ) |

|                                                                    |   | July 1, |   |
|-------------------------------------------------------------------------|--------|---------|--------|
| For the years ended                                                     |   | 2007    |   |
| Net sales                                                               |   | $       | 53,545 |   |
|                                                                    |   |    |   |   |
| Loss from discontinued operations before interest and income taxes      |   | $       | (1,319 | ) |
| Interest expense, net                                                   |   |    | 521    |   |
| Provision for income taxes                                              |   |    | 431    |   |
| Loss from discontinued operations - divested power electronics business |   | $       | (2,271 | ) |

----

|                         |   | June 28, |   |   | June 29, |   |
|------------------------------|--------|----------|--------|--------|----------|--------|
|                         |   | 2009     |   |   | 2008     |   |
| Balance at beginning of year |   | $        | 30,464 |   |     | $      | 28,187 |   |
| Acquisition of business      |   |     | -      |   |     |   | 2,235 |   |
| Currency translation         |   |     | (105   | )      |     |   | 42 |   |
| Balance at end of year       |   | $        | 30,359 |   |     | $      | 30,464 |   |

|            |   | June 28, |   |   | June 29, |   |
|-----------------|--------|----------|--------|--------|----------|--------|
|            |   | 2009     |   |   | 2008     |   |
| Raw materials   |   | $        | 9,479  |   |     | $      | 7,676 |   |
| Work in process |   |     | 909    |   |     |   | 1,071 |   |
| Finished goods  |   |     | 2,229  |   |     |   | 3,778 |   |
| Total inventory |   | $        | 12,617 |   |     | $      | 12,525 |   |

----

|                                   |   | June 28, |   |   | June 29, |   |
|----------------------------------------|--------|----------|--------|--------|----------|--------|
|                                   |   | 2009     |   |   | 2008     |   |
| Capital lease obligations              |   | $        | 15     |   |     | $      | 21 |   |
| Less current portion                   |   |     | 11     |   |     |   | 9 |   |
| Long-term debt, net of current portion |   | $        | 4      |   |     | $      | 12 |   |

|                                                                     |   | June 28, |   |   | June 29, |   |   | July 1, |   |
|--------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
|                                                                     |   | 2009     |   |   | 2008     |   |   | 2007    |   |
| Numerator:                                                               |   |     |   |   |     |   |   |    |   |
| Income (loss) from continuing operations                                 |   | $        | 4,969  |   |     | $      | 6,535  |    |   | $ | (2,770 | ) |
| Income (loss) from discontinued operations                               |   |     | (1,686 | )      |     |   | 3,484  |    |   |   | (5,222 | ) |
| Net income (loss)                                                        |   | $        | 3,283  |   |     | $      | 10,019 |    |   | $ | (7,992 | ) |
|                                                                     |   |     |   |   |     |   |   |    |   |   |   |   |
| Denominator:                                                             |   |     |   |   |     |   |   |    |   |   |   |   |
| Weighted average shares for basic loss per share                         |   |     | 30,851 |   |     |   | 30,367 |    |   |   | 29,435 |   |
| Add dilutive effect of stock options outstanding                         |   |     | 91     |   |     |   | 226    |    |   |   | - |   |
| Weighted average shares for diluted loss per share                       |   |     | 30,942 |   |     |   | 30,593 |    |   |   | 29,435 |   |
|                                                                     |   |     |   |   |     |   |   |    |   |   |   |   |
| Income (loss) per share, basic and diluted                               |   |     |   |   |     |   |   |    |   |   |   |   |
| Income (loss) per share from continuing operations - basic               |   | $        | 0.16   |   |     | $      | 0.22   |    |   | $ | (0.09 | ) |
| Income (loss) per share from continuing operations - diluted             |   | $        | 0.16   |   |     | $      | 0.21   |    |   | $ | (0.09 | ) |
| Income (loss) per share from discontinued operations - basic and diluted |   | $        | (0.05  | )      |     | $      | 0.11   |    |   | $ | (0.18 | ) |
| Net income (loss) per share - basic and diluted                          |   | $        | 0.11   |   |     | $      | 0.33   |    |   | $ | (0.27 | ) |

----

----

|                          |   | June 28, |   |   | June 29, |   |   | July 1, |   |
|-------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
| Fiscal year ended             |   | 2009     |   |   | 2008     |   |   | 2007    |   |
| Continuing Operations         |   |     |   |   |     |   |   |    |   |
| Current                       |   |     |   |   |     |   |   |    |   |
| Federal                       |   | $        | -      |   |     | $      | -      |    |   | $ | - |   |
| State                         |   |     | -      |   |     |   | -      |    |   |   | - |   |
| Foreign                       |   |     | 338    |   |     |   | 118    |    |   |   | 393 |   |
| Deferred                      |   |     |   |   |     |   |   |    |   |   |   |   |
| Federal                       |   |     | 977    |   |     |   | 900    |    |   |   | 900 |   |
| State and foreign             |   |     | -      |   |     |   | -      |    |   |   | - |   |
| Total continuing operations   |   | $        | 1,315  |   |     | $      | 1,018  |    |   | $ | 1,293 |   |
|                          |   |     |   |   |     |   |   |    |   |   |   |   |
| Discontinued Operations       |   |     |   |   |     |   |   |    |   |   |   |   |
| Current                       |   |     |   |   |     |   |   |    |   |   |   |   |
| Federal                       |   | $        | -      |   |     | $      | -      |    |   | $ | - |   |
| State                         |   |     | -      |   |     |   | -      |    |   |   | - |   |
| Foreign                       |   |     | -      |   |     |   | -      |    |   |   | 431 |   |
| Deferred                      |   |     |   |   |     |   |   |    |   |   |   |   |
| Federal                       |   |     | -      |   |     |   | -      |    |   |   | - |   |
| State and foreign             |   |     | -      |   |     |   | -      |    |   |   | - |   |
| Total discontinued operations |   | $        | -      |   |     | $      | -      |    |   | $ | 431 |   |
|                          |   |     |   |   |     |   |   |    |   |   |   |   |
| Total Company                 |   |     |   |   |     |   |   |    |   |   |   |   |
| Current                       |   |     |   |   |     |   |   |    |   |   |   |   |
| Federal                       |   | $        | -      |   |     | $      | -      |    |   | $ | - |   |
| State                         |   |     | -      |   |     |   | -      |    |   |   | - |   |
| Foreign                       |   |     | 338    |   |     |   | 118    |    |   |   | 824 |   |
| Deferred                      |   |     |   |   |     |   |   |    |   |   |   |   |
| Federal                       |   |     | 977    |   |     |   | 900    |    |   |   | 900 |   |
| State and foreign             |   |     | -      |   |     |   | -      |    |   |   | - |   |
| Total income tax provision    |   | $        | 1,315  |   |     | $      | 1,018  |    |   | $ | 1,724 |   |

|                                               |   | June 28, |   |   | June 29, |   |   | July 1, |   |
|----------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
| Fiscal year ended                                  |   | 2009     |   |   | 2008     |   |   | 2007    |   |
|                                               |   | Amount   |   |   | %        |   |   | Amount  |   |   | % |   |   | Amount |   |   | % |   |
| Provision (benefit) computed at the statutory rate |   | $        | 2,200  |   |     |   | 35.0   |    |   | $ | 2,644 |   |   |   | 35.0 |   |   | $ | (1,363 | ) |   |   | 35.0 |   |
| Losses not benefited                               |   |     | -      |   |     |   |   |    |   |   | - |   |   |   |   |   |   |   | 2,656 |   |   |   | (68.2 | ) |
| Use of net operating losses                        |   |     | (838   | )      |     |   | (13.3  | )       |   |   | (1,455 | ) |   |   | (19.3 | ) |   |   | - |   |   |   | - |   |
| Foreign tax rate differential                      |   |     | (47    | )      |     |   | (0.8   | )       |   |   | (171 | ) |   |   | (2.2 | ) |   |   | - |   |   |   | - |   |
| Total income tax provision                         |   | $        | 1,315  |   |     |   | 20.9   |    |   | $ | 1,018 |   |   |   | 13.5 |   |   | $ | 1,293 |   |   |   | (33.2 | ) |

----

|                                                                                  |   | June 28, |    |   | June 29, |   |
|---------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
|                                                                                  |   | 2009     |    |   | 2008     |   |
| Deferred tax liabilities                                                              |   |     |    |   |     |   |
| Depreciation and amortization (including differences in the basis of acquired assets) |   | $        | (4,863  | )      |     | $      | (3,993 | ) |
| Total deferred tax liabilities                                                        |   |     | (4,863  | )      |     |   | (3,993 | ) |
|                                                                                  |   |     |    |   |     |   |   |   |
| Deferred tax assets                                                                   |   |     |    |   |     |   |   |   |
| Inventory and other reserves                                                          |   |     | 2,020   |   |     |   | 2,556 |   |
| Net operating loss and capital loss carryforwards                                     |   |     | 85,585  |   |     |   | 95,037 |   |
| Total gross deferred tax asets                                                        |   |     | 87,605  |   |     |   | 97,593 |   |
| Less: valuation allowance                                                             |   |     | (87,605 | )      |     |   | (97,486 | ) |
| Deferred tax assets less valuation allowance                                          |   |     | -       |   |     |   | 107 |   |
| Net deferred tax liability                                                            |   | $        | (4,863  | )      |     | $      | (3,886 | ) |

|                  |   | Minimum  |   |   | Minimum  |   |   | Net      |   |
|-----------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                  |   | Lease    |   |   | Sublease |   |   | Lease    |   |
| Fiscal Year           |   | Payments |   |   | Rentals  |   |   | Payments |   |
| 2010                  |   | $        | 2,711  |   |     | $      | 2,141  |     |   | $ | 570 |   |
| 2011                  |   |     | 1,097  |   |     |   | 357    |     |   |   | 740 |   |
| 2012                  |   |     | 646    |   |     |   | -      |     |   |   | 646 |   |
| 2013                  |   |     | 418    |   |     |   | -      |     |   |   | 418 |   |
| 2014                  |   |     | 351    |   |     |   | -      |     |   |   | 351 |   |
| Thereafter            |   |     | 348    |   |     |   | -      |     |   |   | 348 |   |
| Total lease payaments |   | $        | 5,571  |   |     | $      | 2,498  |     |   | $ | 3,073 |   |

----

----

----

----

|                                           |   | Options |   |
|------------------------------------------------|--------|---------|--------|
|                                           |   | 2009    |   |   | 2008 |   |   | 2007 |   |
| Expected life in years                         |   |    | 5.7    |   |   |   | 5.6 |   |   |   | 6.1 |   |
| Expected stock price volatility                |   |    | 66.8   | % |   |   | 64.1 | % |   |   | 65.5 | % |
| Risk-free interest rate                        |   |    | 2.9    | % |   |   | 3.0 | % |   |   | 4.9 | % |
| Options granted (in thousands)                 |   |    | 474    |   |   |   | 350 |   |   |   | 123 |   |
| Weighted average fair value of options granted |   | $       | 1.33   |   |   | $ | 2.26 |   |   | $ | 3.42 |   |

----

|                               |   |    |   |   | Weighted- |   |   | Aggregate |   |
|------------------------------------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|
|                               |   |    |   |   | Average   |   |   | Intrinsic |   |
|                               |   |    |   |   | Exercise  |   |   | Value     |   |
|                               |   | Options |   |   | Price     |   |   | ($000's)  |   |
| Options outstanding, July 2, 2006  |   |    | 7,089  |   |      | $      | 8.53   |      |   | $ | 19 |   |
|   Granted                |   |    | 123    |   |      |   | 5.33   |      |   |   |   |   |
|   Exercised              |   |    | (783   | )      |      |   | 3.90   |      |   | $ | 1,118 |   |
|   Canceled               |   |    | (1,145 | )      |      |   | 9.28   |      |   |   |   |   |
| Options outstanding, July 1, 2007  |   |    | 5,284  |   |      | $      | 8.96   |      |   | $ | 1,344 |   |
|                               |   |    |   |   |      |   |   |      |   |   |   |   |
|   Granted                |   |    | 350    |   |      | $      | 3.67   |      |   |   |   |   |
|   Exercised              |   |    | (431   | )      |      |   | 3.90   |      |   | $ | 287 |   |
|   Canceled               |   |    | (1,790 | )      |      |   | 12.02  |      |   |   |   |   |
| Options outstanding, June 29, 2008 |   |    | 3,413  |   |      | $      | 7.46   |      |   | $ | 467 |   |
|                               |   |    |   |   |      |   |   |      |   |   |   |   |
|   Granted                |   |    | 474    |   |      | $      | 2.19   |      |   |   |   |   |
|   Exercised              |   |    | (10    | )      |      |   | 4.32   |      |   | $ | 10 |   |
|   Canceled               |   |    | (1,332 | )      |      |   | 9.41   |      |   |   |   |   |
| Options outstanding, June 28, 2009 |   |    | 2,545  |   |      | $      | 5.47   |      |   | $ | - |   |
|                               |   |    |   |   |      |   |   |      |   |   |   |   |
| Exercisable options, July 1, 2007  |   |    | 5,151  |   |      | $      | 9.07   |      |   | $ | 1,314 |   |
| Exercisable options, June 29, 2008 |   |    | 2,992  |   |      | $      | 7.97   |      |   | $ | 241 |   |
| Exercisable options, June 28, 2009 |   |    | 1,841  |   |      | $      | 6.50   |      |   | $ | - |   |

|                    |          |   | Exercisable |   |   | Outstanding |   |
|-------------------------|---------------|--------|-------------|--------|--------|-------------|--------|
|                    |          |   |        |   |   | Weighted    |   |   | Weighted |   |   |   |   |   | Weighted |   |   | Weighted |   |
|                    |          |   |        |   |   | average     |   |   | average |   |   |   |   |   | average |   |   | average |   |
|                    |          |   |        |   |   | exercise    |   |   | remaining |   |   |   |   |   | exercise |   |   | remaining |   |
|  Range of exercise |          |   | Options     |   |   | price per   |   |   | contractual |   |   | Options |   |   | price per |   |   | contractual |   |
| price per share         |          |   | exercisable |   |   | share       |   |   | life (years) |   |   | outstanding |   |   | share |   |   | life (years) |   |
|                    |          |   |        |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                       | 1.39 - $2.50  |   |        |   | -      |        |   | $ | - |   |   |   | - |   |   |   | 474 |   |   | $ | 2.19 |   |   |   | 9.4 |   |
| $                       | 2.51 - $5.00  |   |        |   | 673    |        |   |   | 3.75 |   |   |   | 3.3 |   |   |   | 859 |   |   |   | 3.74 |   |   |   | 4.5 |   |
| $                       | 5.01 - $7.50  |   |        |   | 460    |        |   |   | 6.39 |   |   |   | 3.6 |   |   |   | 504 |   |   |   | 6.29 |   |   |   | 4.0 |   |
| $                       | 7.51 - $10.00 |   |        |   | 497    |        |   |   | 8.41 |   |   |   | 2.1 |   |   |   | 497 |   |   |   | 8.41 |   |   |   | 2.1 |   |
| Over $10.00             |          |   |        | 211    |   |        |   | 11.02 |   |   |   | 1.9 |   |   |   | 211 |   |   |   | 11.02 |   |   |   | 1.9 |   |
| Total                   |          |   |        | 1,841  |   |        | $      | 6.50 |   |   |   | 2.9 |   |   |   | 2,545 |   |   | $ | 5.47 |   |   |   | 4.6 |   |

----

|                      |   |   |   |   | Weighted   |   |   | Fair value   |   |
|---------------------------|--------|--------|--------|--------|------------|--------|--------|--------------|--------|
|                      |   |   |   |   | average    |   |   | of vested    |   |
|                      |   |   |   |   | grant date |   |   | shares at    |   |
|                      |   | Shares |   |   | fair value |   |   | vesting date |   |
| Unvested at July 2, 2006  |   |   | 500    |   |       | $      | 2.77   |         |   |   |   |
|                      |   |   |   |   |       |   |   |         |   |   |   |
|   Granted       |   |   | 90     |   |       | $      | 4.98   |         |   |   |   |
|   Vested        |   |   | (117   | )      |       |   | 2.77   |         |   | $ | 566 |   |
|   Forfeited     |   |   | (178   | )      |       |   | 2.77   |         |   |   |   |   |
| Unvested at July 1, 2007  |   |   | 295    |   |       | $      | 3.44   |         |   |   |   |   |
|                      |   |   |   |   |       |   |   |         |   |   |   |   |
|   Granted       |   |   | 84     |   |       | $      | 3.61   |         |   |   |   |   |
|   Vested        |   |   | -      |   |       |   | -      |         |   |   |   |   |
|   Forfeited     |   |   | -      |   |       |   | -      |         |   |   |   |   |
| Unvested at June 29, 2008 |   |   | 379    |   |       | $      | 3.48   |         |   |   |   |   |
|                      |   |   |   |   |       |   |   |         |   |   |   |   |
|   Granted       |   |   | -      |   |       | $      | -      |         |   |   |   |   |
|   Vested        |   |   | (205   | )      |       |   | 2.77   |         |   | $ | 492 |   |
|   Forfeited     |   |   | (4     | )      |       |   | 3.61   |         |   |   |   |   |
| Unvested at June 28, 2009 |   |   | 170    |   |       | $      | 4.34   |         |   |   |   |   |

----

|                                               | 2009                      | 2008                      |
|----------------------------------------------------|---------------------------|---------------------------|
| Discount rate used to determine benefit obligation | 6.25%                     | 6.75%                     |
| Discount rate used to determine benefit cost       | 6.75%                     | 6.25%                     |
| Expected return on plan assets                     | 9.00%                     | 9.00%                     |
| Measurement date for pension benefit obligations   |   June 28, 2009 |   June 29, 2008 |

|                    | June 28, | June 29, |
|-------------------------|----------|----------|
| Asset Category          | 2009     | 2008     |
| Equity securities       | 65%      | 64%      |
| Fixed income securities | 35%      | 36%      |
| Total                   | 100%     | 100%     |

|                                       |   | Pension Benefits |    |
|--------------------------------------------|--------|------------------|---------|
| Fiscal year ended                          |   | June 28,         |    |   | June 29, |   |   | July 1, |   |
| Components of Net Periodic Benefit Cost:   |   | 2009             |    |   | 2008 |   |   | 2007 |   |
|   Interest cost                  |   | $                | 11,195  |   |   | $ | 10,425 |   |   | $ | 10,309 |   |
|   Expected return on plan assets |   |             | (12,130 | ) |   |   | (13,619 | ) |   |   | (11,947 | ) |
|   Recognized net actuarial loss  |   |             | 4,320   |   |   |   | 3,380 |   |   |   | 3,616 |   |
|   Net periodic benefit cost      |   | $                | 3,385   |   |   | $ | 186 |   |   | $ | 1,978 |   |

----

|                                                   |   | June 28, |    |   | June 29, |   |
|--------------------------------------------------------|--------|----------|---------|--------|----------|--------|
|                                                   |   | 2009     |    |   | 2008     |   |
| Change in Benefit Obligation:                          |   |     |    |   |     |   |
| Benefit obligation at beginning of year                |   | $        | 171,585 |   |     | $      | 172,329 |   |
| Interest cost                                          |   |     | 11,196  |   |     |   | 10,425 |   |
| Actuarial loss                                         |   |     | 8,627   |   |     |   | 911 |   |
| Benefits paid                                          |   |     | (12,352 | )      |     |   | (12,080 | ) |
| Benefit obligation at end of year                      |   | $        | 179,056 |   |     | $      | 171,585 |   |
|                                                   |   |     |    |   |     |   |   |   |
| Change in Plan Assets:                                 |   |     |    |   |     |   |   |   |
| Fair value of plan assets at beginning of year         |   | $        | 133,947 |   |     | $      | 156,364 |   |
| Actual return on plan assets                           |   |     | (28,810 | )      |     |   | (13,092 | ) |
| Employer contributions                                 |   |     | 9,422   |   |     |   | 2,755 |   |
| Benefits paid                                          |   |     | (12,352 | )      |     |   | (12,080 | ) |
| Fair value of plan assets at end of year               |   | $        | 102,207 |   |     | $      | 133,947 |   |
|                                                   |   |     |    |   |     |   |   |   |
| Funded status                                          |   | $        | (76,849 | )      |     | $      | (37,638 | ) |
| Unrecognized net actuarial loss                        |   |     | 165,819 |   |     |   | 120,571 |   |
| Prepaid benefit cost                                   |   | $        | 88,970  |   |     | $      | 82,933 |   |
|                                                   |   |     |    |   |     |   |   |   |
| Amounts Recognized in Statement of Financial Position: |   |     |    |   |     |   |   |   |
| Pension benefit obligations, net                       |   | $        | (76,849 | )      |     | $      | (37,638 | ) |
| Accumulated other comprehensive loss                   |   |     | 165,819 |   |     |   | 120,571 |   |
| Net amount recognized                                  |   | $        | 88,970  |   |     | $      | 82,933 |   |

|                                    |   | June 28, |   |   | June 29, |   |
|-----------------------------------------|--------|----------|--------|--------|----------|--------|
|                                    |   | 2009     |   |   | 2008     |   |
| Balance at beginning of year            |   | $        | 493    |   |     | $      | 315 |   |
| Additions charged to earnings           |   |     | 299    |   |     |   | 818 |   |
| Use of reserve for warranty obligations |   |     | (418   | )      |     |   | (640 | ) |
| Balance at end of year                  |   | $        | 374    |   |     | $      | 493 |   |

----

|                                                     |   | June 29, |   |   | June 29, |   |   | July 1, |   |
|----------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
| Fiscal year ended                                        |   | 2009     |   |   | 2008     |   |   | 2007    |   |
| (Increase) decrease in accounts receivable               |   | $        | 7,002  |   |     | $      | (496   | )       |   | $ | (3,330 | ) |
| Increase in inventories                                  |   |     | (92    | )      |     |   | (30    | )       |   |   | (2,546 | ) |
| (Increase) decrease in prepaids and other current assets |   |     | 891    |   |     |   | (233   | )       |   |   | 408 |   |
| (Increase) decrease in other operating assets            |   |     | 647    |   |     |   | (250   | )       |   |   | 2 |   |
| Increase (decrease) in accounts payable                  |   |     | (4,691 | )      |     |   | (1,831 | )       |   |   | 4,376 |   |
| Increase (decrease) in accrued liabilities               |   |     | (1,428 | )      |     |   | 183    |    |   |   | (2,348 | ) |
| Increase (decrease) in oparating assets and liabilities  |   | $        | 2,329  |   |     | $      | (2,657 | )       |   | $ | (3,438 | ) |
|                                                     |   |     |   |   |     |   |   |    |   |   |   |   |
| Cash paid for interest and income taxes :                |   |     |   |   |     |   |   |    |   |   |   |   |
| Interest                                                 |   | $        | -      |   |     | $      | 34     |    |   | $ | 1,151 |   |
| Income taxes                                             |   | $        | 271    |   |     | $      | 148    |    |   | $ | 744 |   |

|                                                                     |   | June 28, |     |   | June 29, |   |
|--------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
|                                                                     |   | 2009     |     |   | 2008     |   |
| Unrecognized pension plan liabilities, net of $17,000 income tax benefit |   | $        | (148,819 | )      |     | $      | (103,571 | ) |
| Foreign currency translation adjustments                                 |   |     | 646      |   |     |   | 1,006 |   |
| Accumulated other comprehensive loss                                     |   | $        | (148,173 | )      |     | $      | (102,565 | ) |

|                          |   | June 28, |   |   | June 29, |   |   | July 1, |   |
|-------------------------------|--------|----------|--------|--------|----------|--------|--------|---------|--------|
| For the fiscal year           |   | 2009     |   |   | 2008     |   |   | 2007    |   |
| Sales                         |   | $        | 14,355 |   |     | $      | 13,054 |    |   | $ | 11,190 |   |
| Income from operations        |   |     | 721    |   |     |   | 854    |    |   |   | 1,124 |   |
| Identifiable assets           |   |     | 7,714  |   |     |   | 9,103  |    |   |   | 7,713 |   |
| Capital expenditures          |   |     | 138    |   |     |   | 23     |    |   |   | 98 |   |
| Depreciation and amortization |   |     | 58     |   |     |   | 58     |    |   |   | 62 |   |

----

|                                                                           |   | Sep 28, |   |   | Dec 28, |   |   | Mar 29, |   |   | Jun 28, |   |
|--------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Fiscal 2009 quarter ended                                                      |   | 2008    |   |   | 2008    |   |   | 2009    |   |   | 2009    |   |
| Net sales                                                                      |   | $       | 26,351 |   |    | $      | 26,761 |    |   | $      | 25,111  |   |   | $ | 19,998 |   |
| Gross profit                                                                   |   |    | 9,445  |   |    |   | 9,402  |    |   |   | 7,758   |   |   |   | 6,719 |   |
| Income from operations                                                         |   |    | 2,031  |   |    |   | 1,948  |    |   |   | 1,206   |   |   |   | 961 |   |
| Income from continuing operations before income taxes                          |   |    | 2,098  |   |    |   | 1,991  |    |   |   | 1,220   |   |   |   | 975 |   |
| Provision for income taxes                                                     |   |    | 362    |   |    |   | 732    |    |   |   | (25     | )      |   |   | 246 |   |
| Income from continuing operations                                              |   |    | 1,736  |   |    |   | 1,259  |    |   |   | 1,245   |   |   |   | 729 |   |
| Income (loss) from discontinued operations                                     |   |    | (855   | )      |    |   | 680    |    |   |   | (1,067  | )      |   |   | (444 | ) |
| Net income                                                                     |   | $       | 881    |   |    | $      | 1,939  |    |   | $      | 178     |   |   | $ | 285 |   |
| Per common share:                                                              |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|    Basic and diluted:                                           |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|       Income from continuing operations          |   | $       | 0.06   |   |    | $      | 0.04   |    |   | $      | 0.04    |   |   | $ | 0.02 |   |
|       Income (loss) from discontinued operations |   | $       | (0.03  | )      |    | $      | 0.02   |    |   | $      | (0.03   | )      |   | $ | (0.01 | ) |
|       Net income                                 |   | $       | 0.03   |   |    | $      | 0.06   |    |   | $      | 0.01    |   |   | $ | 0.01 |   |

|                                                                           |   | Sep 30, |   |   | Dec 30, |   |   | Mar 30, |   |   | Jun 29, |   |
|--------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Fiscal 2008 quarter ended                                                      |   | 2007    |   |   | 2007    |   |   | 2008    |   |   | 2008    |   |
| Net sales                                                                      |   | $       | 22,799 |   |    | $      | 25,389 |    |   | $      | 24,606  |   |   | $ | 27,245 |   |
| Gross profit                                                                   |   |    | 6,853  |   |    |   | 6,989  |    |   |   | 6,783   |   |   |   | 8,819 |   |
| Income from operations                                                         |   |    | 1,136  |   |    |   | 1,823  |    |   |   | 1,398   |   |   |   | 2,426 |   |
| Income from continuing operations before income taxes                          |   |    | 1,348  |   |    |   | 2,023  |    |   |   | 1,624   |   |   |   | 2,558 |   |
| Provision for income taxes                                                     |   |    | 304    |   |    |   | 219    |    |   |   | 224     |   |   |   | 271 |   |
| Income from continuing operations                                              |   |    | 1,044  |   |    |   | 1,804  |    |   |   | 1,400   |   |   |   | 2,287 |   |
| Income (loss) from discontinued operations                                     |   |    | (545   | )      |    |   | 776    |    |   |   | (892    | )      |   |   | 4,145 |   |
| Net income                                                                     |   | $       | 499    |   |    | $      | 2,580  |    |   | $      | 508     |   |   | $ | 6,432 |   |
| Per common share:                                                              |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|    Basic and diluted:                                           |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|       Income from continuing operations          |   | $       | 0.03   |   |    | $      | 0.06   |    |   | $      | 0.05    |   |   | $ | 0.07 |   |
|       Income (loss) from discontinued operations |   | $       | (0.02  | )      |    | $      | 0.03   |    |   | $      | (0.03   | )      |   | $ | 0.14 |   |
|       Net income                                 |   | $       | 0.02   |   |    | $      | 0.08   |    |   | $      | 0.02    |   |   | $ | 0.21 |   |

----

|   |                           |   |
|--------|--------------------------------|--------|
|   |                           |
|   | /s/ Ernst & Young LLP |   |
|   | Milwaukee, Wisconsin           |
|   |                           |

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