----

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| Statement of Operations Data                                                         |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |
|--------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|---------|--------|--------|---------|--------|
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |
| For the years ended                                                                  |   | June 27, |   |   | June 28, |   |   | June 29, |   |   | July 1, |   |   | July 2, |   |
| (Amounts in thousands, except per share data)                                        |   | 2010     |   |   | 2009     |   |   | 2008     |   |   | 2007    |   |   | 2006    |   |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |
| Net sales                                                                            |   | $        | 80,571 |   |     | $      | 98,221 |     |   | $      | 100,039 |   |   | $       | 87,739 |   |   | $ | 83,102 |   |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Gross profit                                                                         |   |     | 24,128 |   |     |   | 33,324 |     |   |   | 29,444  |   |   |    | 28,097 |   |   |   | 26,687 |   |
| Gross profit %                                                                       |   |     | 29.9   | %      |     |   | 33.9   | %        |   |   | 29.4    | %      |   |    | 32.0   | % |   |   | 32.1 | % |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Income (loss) from operations                                                        |   | $        | (2,314 | )      |     | $      | 6,146  |     |   | $      | 6,783   |   |   | $       | (702   | ) |   | $ | (2,877 | ) |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Net income (loss):                                                                   |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Continuing operations                                                                |   | $        | (3,158 | )      |     | $      | 4,969  |     |   | $      | 6,535   |   |   | $       | (2,770 | ) |   | $ | (7,091 | ) |
| Discontinued operations                                                              |   |     | (1,943 | )      |     |   | (1,686 | )        |   |   | 3,484   |   |   |    | (5,222 | ) |   |   | (39,758 | ) |
| Net income (loss)                                                                    |   | $        | (5,101 | )      |     | $      | 3,283  |     |   | $      | 10,019  |   |   | $       | (7,992 | ) |   | $ | (46,849 | ) |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Per common share - basic and diluted:                                                |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Income (loss) from continuing operations  - basic                          |   | $        | (0.10  | )      |     | $      | 0.16   |     |   | $      | 0.22    |   |   | $       | (0.09  | ) |   | $ | (0.25 | ) |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Income (loss) from continuing operations  - diluted                        |   | $        | (0.10  | )      |     | $      | 0.16   |     |   | $      | 0.21    |   |   | $       | (0.09  | ) |   | $ | (0.25 | ) |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Income (loss) from discontinued operations  - basic  and diluted |   | $        | (0.06  | )      |     | $      | (0.05  | )        |   | $      | 0.11    |   |   | $       | (0.18  | ) |   | $ | (1.37 | ) |
|                                                                                 |   |     |   |   |     |   |   |     |   |   |    |   |   |    |   |   |   |   |   |   |
| Income (loss) - basic and diluted                                                    |   | $        | (0.16  | )      |     | $      | 0.11   |     |   | $      | 0.33    |   |   | $       | (0.27  | ) |   | $ | (1.62 | ) |

| Balance Sheet Data                        |   |     |    |   |     |   |    |     |   |   |    |   |   |    |    |
|-------------------------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|--------|---------|--------|--------|---------|---------|
|                                      |   | June 27, |    |   | June 28, |   |    | June 29, |   |   | July 1, |   |   | July 2, |    |
|  (Amounts in thousands)              |   | 2010     |    |   | 2009     |   |    | 2008     |   |   | 2007    |   |   | 2006    |    |
|                                      |   |     |    |   |     |   |    |     |   |   |    |   |   |    |    |
| Total assets                              |   | $        | 76,100  |   |     | $      | 84,080  |     |   | $      | 91,547  |   |   | $       | 104,738 |   |   | $ | 233,026 |   |
| Long-term debt, including current portion |   |     | 4       |   |     |   | 15      |     |   |   | 21      |   |   |    | 32      |   |   |   | 27,455 |   |
| Other long term obligations               |   |     | 1,461   |   |     |   | 1,615   |     |   |   | 1,947   |   |   |    | 1,709   |   |   |   | 1,106 |   |
| Pension benefit obligations               |   |     | 77,914  |   |     |   | 76,849  |     |   |   | 37,638  |   |   |    | 15,965  |   |   |   | 45,494 |   |
| Stockholders' equity (deficit)            |   |     | (23,937 | )      |     |   | (11,291 | )        |   |   | 29,801  |   |   |    | 41,473  |   |   |   | 42,908 |   |

----

----

----

----

| Fiscal Year Ended       |   | June 27, 2010 |   |   | June 28, 2009 |   |
|-------------------------|--------|---------------|--------|--------|---------------|--------|
|                    |   | Sales         |   |   | % of Sales    |   |   | Sales |   |   | % of Sales |   |
| Material handling       |   | $             | 46.3   |   |          |   | 57 | % |   | $ | 67.0 |   |   |   | 68 | % |
| Elevator motion control |   |          | 18.9   |   |          |   | 23 | % |   |   | 19.9 |   |   |   | 20 | % |
| Energy systems          |   |          | 15.4   |   |          |   | 20 | % |   |   | 11.3 |   |   |   | 12 | % |
| Total net sales         |   | $             | 80.6   |   |          |   | 100 | % |   | $ | 98.2 |   |   |   | 100 | % |

----

----

| 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 | % |

----

----

|                        |   | Less than |   |   | 1 to 3 |   |   | 3 to 5 |   |   | More than |   |   |   |   |
|-----------------------------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
|                        |   | 1 Year    |   |   | Years  |   |   | Years  |   |   | 5 Years   |   |   | Total  |   |
| Pension funding obligations |   | $         | 12,005 |   |   | $      | 38,640 |   |   | $      | 32,610    |   |   | $      | 10,470 |   |   | $ | 93,725 |   |
| Operating lease obligations |   |      | 1,032  |   |   |   | 938    |   |   |   | 514       |   |   |   | -      |   |   |   | 2,484 |   |
| Purchase obligations        |   |      | 14,862 |   |   |   | -      |   |   |   | -         |   |   |   | -      |   |   |   | 14,862 |   |
| Capital lease obligations   |   |      | 4      |   |   |   | -      |   |   |   | -         |   |   |   | -      |   |   |   | 4 |   |
| Total                       |   | $         | 27,903 |   |   | $      | 39,578 |   |   | $      | 33,124    |   |   | $      | 10,470 |   |   | $ | 111,075 |   |

----

----

----

----

| For the years ended                                            |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|----------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| (Amounts in thousands, except per share data)                  |   | 2010     |   |   | 2009     |   |   | 2008     |   |
|                                                           |   |     |   |   |     |   |   |     |   |
| Net sales                                                      |   | $        | 80,571 |   |     | $      | 98,221 |     |   | $ | 100,039 |   |
| Cost of sales                                                  |   |     | 56,443 |   |     |   | 64,897 |     |   |   | 70,595 |   |
| Gross profit                                                   |   |     | 24,128 |   |     |   | 33,324 |     |   |   | 29,444 |   |
| Research and development                                       |   |     | 3,802  |   |     |   | 3,522  |     |   |   | 3,179 |   |
| Pension expense                                                |   |     | 8,206  |   |     |   | 3,385  |     |   |   | 186 |   |
| Sales, general and administrative                              |   |     | 14,434 |   |     |   | 20,271 |     |   |   | 19,296 |   |
| Income (loss) from operations                                  |   |     | (2,314 | )      |     |   | 6,146  |     |   |   | 6,783 |   |
| Non operating expense (income):                                |   |     |   |   |     |   |   |     |   |   |   |   |
|   Interest income                                    |   |     | (29    | )      |     |   | (138   | )        |   |   | (1,019 | ) |
|   Interest expense                                   |   |     | -      |   |     |   | -      |     |   |   | 249 |   |
| Income (loss) from continuing operations                       |   |     |   |   |     |   |   |     |   |   |   |   |
| before provision for income taxes                              |   |     | (2,285 | )      |     |   | 6,284  |     |   |   | 7,553 |   |
| Provision for income taxes                                     |   |     | 873    |   |     |   | 1,315  |     |   |   | 1,018 |   |
| Income (loss) from continuing operations                       |   |     | (3,158 | )      |     |   | 4,969  |     |   |   | 6,535 |   |
| Income (loss) from discontinued operations, net of taxes       |   |     | (1,943 | )      |     |   | (1,686 | )        |   |   | 3,484 |   |
| Net income (loss)                                              |   | $        | (5,101 | )      |     | $      | 3,283  |     |   | $ | 10,019 |   |
|                                                           |   |     |   |   |     |   |   |     |   |   |   |   |
| Per common share basic and diluted:                            |   |     |   |   |     |   |   |     |   |   |   |   |
| Income (loss) from continuing operations - basic               |   | $        | (0.10  | )      |     | $      | 0.16   |     |   | $ | 0.22 |   |
| Income (loss) from continuing operations - diluted             |   | $        | (0.10  | )      |     | $      | 0.16   |     |   | $ | 0.21 |   |
| Income (loss) from discontinued operations - basic and diluted |   | $        | (0.06  | )      |     | $      | (0.05  | )        |   | $ | 0.11 |   |
| Net income (loss) - basic and diluted                          |   | $        | (0.16  | )      |     | $      | 0.11   |     |   | $ | 0.33 |   |
|                                                           |   |     |   |   |     |   |   |     |   |   |   |   |
| Weighted average shares outstanding - basic                    |   |     | 31,078 |   |     |   | 30,851 |     |   |   | 30,367 |   |
| Weighted average shares outstanding - diluted                  |   |     | 31,351 |   |     |   | 30,942 |     |   |   | 30,593 |   |

----

| As of                                                                       |   | June 27, |     |   | June 28, |   |
|-----------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
| (Amounts in thousands)                                                      |   | 2010     |     |   | 2009     |   |
|                                                                        |   |     |     |   |     |   |
| Assets                                                                      |   |     |     |   |     |   |
| Current assets:                                                             |   |     |     |   |     |   |
| Cash                                                                        |   | $        | 8,244    |   |     | $      | 18,097 |   |
| Restricted cash                                                             |   |     | 262      |   |     |   | 262 |   |
| Accounts receivable, less allowance for doubtful accounts of $249           |   |     |     |   |     |   |   |   |
| in 2010 and $283 in 2009                                                    |   |     | 16,436   |   |     |   | 11,598 |   |
| Inventories                                                                 |   |     | 10,285   |   |     |   | 12,617 |   |
| Prepaid expenses and other current assets                                   |   |     | 480      |   |     |   | 1,242 |   |
| Total current assets                                                        |   |     | 35,707   |   |     |   | 43,816 |   |
| Property, plant and equipment:                                              |   |     |     |   |     |   |   |   |
| Buildings and improvements                                                  |   |     | 1,964    |   |     |   | 1,966 |   |
| Machinery and equipment                                                     |   |     | 18,824   |   |     |   | 17,982 |   |
| Less accumulated depreciation                                               |   |     | 16,963   |   |     |   | 16,299 |   |
| Net property, plant and equipment                                           |   |     | 3,825    |   |     |   | 3,649 |   |
| Goodwill                                                                    |   |     | 30,443   |   |     |   | 30,359 |   |
| Other assets                                                                |   |     | 6,125    |   |     |   | 6,256 |   |
| Total assets                                                                |   | $        | 76,100   |   |     | $      | 84,080 |   |
|                                                                        |   |     |     |   |     |   |   |   |
| Liabilities and Stockholders' Deficit                                       |   |     |     |   |     |   |   |   |
| Current liabilities:                                                        |   |     |     |   |     |   |   |   |
| Accounts payable                                                            |   | $        | 9,887    |   |     | $      | 5,716 |   |
| Accrued liabilities                                                         |   |     | 4,953    |   |     |   | 6,313 |   |
| Current portion of long-term debt                                           |   |     | 4        |   |     |   | 11 |   |
| Total current liabilities                                                   |   |     | 14,844   |   |     |   | 12,040 |   |
| Long-term debt, net of current portion                                      |   |     | -        |   |     |   | 4 |   |
| Long-term pension benefit obligations                                       |   |     | 77,914   |   |     |   | 76,849 |   |
| Other long-term obligations                                                 |   |     | 1,461    |   |     |   | 1,615 |   |
| Deferred income taxes                                                       |   |     | 5,818    |   |     |   | 4,863 |   |
|                                                                        |   |     |     |   |     |   |   |   |
| Commitments and contingencies                                               |   |     |     |   |     |   |   |   |
|                                                                        |   |     |     |   |     |   |   |   |
| Stockholders' Deficit:                                                      |   |     |     |   |     |   |   |   |
| Common stock, $0.01 par value, 100,000 shares authorized; 31,205 and 30,942 |   |     |     |   |     |   |   |   |
| shares issued and outstanding in 2010 and 2009                              |   |     | 312      |   |     |   | 309 |   |
| Additional paid-in capital                                                  |   |     | 138,965  |   |     |   | 138,094 |   |
| Accumulated deficit                                                         |   |     | (6,622   | )      |     |   | (1,521 | ) |
| Accumulated other comprehensive loss                                        |   |     | (156,592 | )      |     |   | (148,173 | ) |
| Total stockholders' deficit                                                 |   |     | (23,937  | )      |     |   | (11,291 | ) |
| Total liabilities and stockholders' deficit                                 |   | $        | 76,100   |   |     | $      | 84,080 |   |

----

|                             |   |         |   |   |    |   |   |        |    |    |          |   |    | Accumulated |   |   |    |     |
|----------------------------------|--------|--------------|--------|--------|---------|--------|--------|-------------|---------|---------|---------------|--------|---------|-------------|--------|--------|---------|----------|
|                             |   |         |   |   |    |   |   | Additional  |    |    |          |   |    | Other       |   |   |    |     |
|                             |   | Common Stock |   |   | Paid-in |   |   | Accumulated |    |    | Comprehensive |   |    |        |   |
| (Amounts in thousands)           |   | Shares       |   |   | Amount  |   |   | Capital     |    |    | Deficit       |   |    | Loss        |   |   | Total   |     |
| 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 | ) |
| Shares issued                    |   | 123          |   |   |    | 1      |   |        |    |    |          |   |    |        |   |   |    |     |   |   |   | 1 |   |
| Shares purchased                 |   | (48          | )      |   |    |   |   |        |    | (80     | )             |   |    |        |   |   |    |     |   |   |   | (80 | ) |
| Stock-based compensation expense |   |         |   |   |    |   |   | 685         |    |    |          |   |    |        |   |   |    |     |   | 685 |   |
| Shares issued to trust           |   | 188          |   |   |    | 2      |   |        |    | 266     |          |   |    |        |   |   |    |     |   |   |   | 268 |   |
| Net loss                         |   |         |   |   |    |   |   |        |    |    |          |   |    | (5,101      | )      |   |    |     |   |   |   | (5,101 | ) |
| Translation adjustments          |   |         |   |   |    |   |   |        |    |    |          |   |    |        |   |   |    | 27       |   |   |   | 27 |   |
| Pension adjustments              |   |         |   |   |    |   |   |        |    |    |          |   |    |        |   |   |    | (8,446   | ) |   |   | (8,446 | ) |
| Comprehensive loss               |   |         |   |   |    |   |   |        |    |    |          |   |    |        |   |   |    |     |   |   |   | (13,520 | ) |
| Balance, June 27, 2010           |   | 31,205       |   |   |  $ | 312    |   |        |  $ | 138,965 |          |   |  $ | (6,622      | )      |   |  $ | (156,592 | ) |   | $ | (23,937 | ) |

----

| For the years ended                                                                    |   |     |    |   | June 28,   |   |   | June 29,   |   |
|----------------------------------------------------------------------------------------|--------|----------|---------|--------|------------|--------|--------|------------|--------|
|                                                                                   |   | June 27, |    |   | 2009       |   |   | 2008       |   |
| (Amounts in thousands)                                                                 |   | 2010     |    |   | (restated) |   |   | (restated) |   |
|                                                                                   |   |     |    |   |       |   |   |       |   |
| Cash flows from operating activities:                                                  |   |     |    |   |       |   |   |       |   |
| Net income (loss)                                                                      |   | $        | (5,101  | )      |       | $      | 3,283  |       |   | $ | 10,019 |   |
|                                                                                   |   |     |    |   |       |   |   |       |   |   |   |   |
| Loss (income) from discontinued operations                                             |   |     | 1,943   |   |       |   | 1,686  |       |   |   | (3,484 | ) |
| Adjustments to reconcile net income (loss) to net cash                                 |   |     |    |   |       |   |   |       |   |   |   |   |
|      provided by (used in) operating activities:              |   |     |    |   |       |   |   |       |   |   |   |   |
|      Depreciation                                             |   |     | 1,002   |   |       |   | 1,043  |       |   |   | 1,014 |   |
|   Amortization                                                               |   |     | 53      |   |       |   | 53     |       |   |   | 214 |   |
|      Stock based compensation expense                         |   |     | 685     |   |       |   | 1,104  |       |   |   | 640 |   |
|      Pension expense                                          |   |     | 8,206   |   |       |   | 3,385  |       |   |   | 186 |   |
|      Deferred income tax provision                            |   |     | 955     |   |       |   | 977    |       |   |   | 900 |   |
|      Changes in operating assets and liabilities              |   |     | 830     |   |       |   | 2,329  |       |   |   | (2,657 | ) |
|      Cash contribution to pension fund                        |   |     | (15,587 | )      |       |   | (9,422 | )          |   |   | (2,755 | ) |
| Net cash provided by (used in) operating activities - continuing operations            |   |     | (7,014  | )      |       |   | 4,438  |       |   |   | 4,077 |   |
| Net cash provided by (used in) operating activities - discontinued operations          |   |     | (1,858  | )      |       |   | (1,226 | )          |   |   | (16,038 | ) |
| Net cash provided by (used in) operating activities                                    |   |     | (8,872  | )      |       |   | 3,212  |       |   |   | (11,961 | ) |
|                                                                                   |   |     |    |   |       |   |   |       |   |   |   |   |
| Cash flows from investing activities:                                                  |   |     |    |   |       |   |   |       |   |   |   |   |
|      Proceeds from sale of business, net of transaction costs |   |     | -       |   |       |   | 1,250  |       |   |   | - |   |
|      Purchase of business                                     |   |     | -       |   |       |   | (885   | )          |   |   | (1,750 | ) |
|      Proceeds from (deposit into) escrow account              |   |     | -       |   |       |   | (6     | )          |   |   | 22,596 |   |
|      Capital expenditures                                     |   |     | (1,158  | )      |       |   | (807   | )          |   |   | (955 | ) |
| Net cash provided by (used in) investing activities - continuing operations            |   |     | (1,158  | )      |       |   | (448   | )          |   |   | 19,891 |   |
| Net cash provided by (used in) investing activities - discontinued operations          |   |     | -       |   |       |   | -      |       |   |   | - |   |
| Net cash provided by (used in) investing activities                                    |   |     | (1,158  | )      |       |   | (448   | )          |   |   | 19,891 |   |
|                                                                                   |   |     |    |   |       |   |   |       |   |   |   |   |
| Cash flow from financing activities:                                                   |   |     |    |   |       |   |   |       |   |   |   |   |
|      Proceeds from issuance of common stock                   |   |     | 268     |   |       |   | 310    |       |   |   | 1,887 |   |
|      Purchase and retirement of treasury stock                |   |     | (80     | )      |       |   | (181   | )          |   |   | - |   |
|      Borrowings under capital lease obligations               |   |     | -       |   |       |   | 10     |       |   |   | - |   |
|      Principal payments under capital lease obligations       |   |     | (11     | )      |       |   | (16    | )          |   |   | (11 | ) |
| Net cash provided by (used in) financing activities - continuing opeations             |   |     | 177     |   |       |   | 123    |       |   |   | 1,876 |   |
| Net cash provided by (used in) financing activities - discontinued opeations           |   |     | -       |   |       |   | -      |       |   |   | - |   |
| Net cash provided by (used in) financing activities                                    |   |     | 177     |   |       |   | 123    |       |   |   | 1,876 |   |
|                                                                                   |   |     |    |   |       |   |   |       |   |   |   |   |
|                                                                                   |   |     |    |   |       |   |   |       |   |   |   |   |
| Net increase (decrease) in cash                                                        |   |     | (9,853  | )      |       |   | 2,887  |       |   |   | 9,806 |   |
| Cash at the beginning of the period                                                    |   |     | 18,097  |   |       |   | 15,210 |       |   |   | 5,404 |   |
| Cash at the end of the period                                                          |   | $        | 8,244   |   |       | $      | 18,097 |       |   | $ | 15,210 |   |

----

|                                                                                | June 28, 2009 | June 29, 2008 |
|-------------------------------------------------------------------------------------|-------------------------|-------------------------|
|                                                                                | As                      |                    | As |   |
| For the years ended                                                  | previously              | As                      | previously | As |
| (Amounts in thousands except per share amounts)       | reported                | revised                 | reported | revised |
| Net cash provided by (used in) operating activities – continuing operations   |                    | $                       | 4,438 |   |   | $ | 4,438 |   |   | $ | 4,077 |   |   | $ | 4,077 |   |
| Net cash provided by (used in) operating activities – discontinued operations |                    |                    |            - |   |   | $ | (1,226 | ) |   |   |         - |   |   | $ | (16,038 | ) |
| Net cash provided by (used in) operating activities                                 |                    | $                       | 4,438 |   |   | $ | 3,212 |   |   | $ 4,077 |   |   | $ | (11,961 | ) |

----

----

----

| ·   | Acquired in-process research and development (“IPR&D”) is accounted for as an asset, with the cost recognized as the research and development is realized or abandoned. IPR&D was previously expensed at the time of the acquisition. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Contingent consideration is recorded at fair value as an element of purchase price with subsequent adjustments recognized in operations. Contingent consideration was previously accounted for as a subsequent adjustment of purchase price. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transaction costs are expensed. These costs were previously treated as costs of the acquisition. |
|--------------------|--------------------------------------------------------------------------------------------------|

|                                                                        |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|-----------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| For the years ended                                                         |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| Income (loss) from discontinued operations before interest and income taxes |   | $        | (1,787 | )      |     | $      | (1,729 | )        |   | $ | 3,484 |   |
| Loss on sale of telecom power business                                      |   |     | (156   | )      |     |   | (342   | )        |   |   | - |   |
| Income on sale of power electronics business                                |   |     | -      |   |     |   | 385    |     |   |   | - |   |
| Income (loss) from discontinued operations                                  |   | $        | (1,943 | )      |     | $      | (1,686 | )        |   | $ | 3,484 |   |

----

|                                                               |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|--------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| For the years ended                                                |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| Net sales                                                          |   | $        | -      |   |     | $      | 1,503  |     |   | $ | 9,738 |   |
|                                                               |   |     |   |   |     |   |   |     |   |   |   |   |
| Loss from discontinued operations                                  |   | $        | (156   | )      |     | $      | (94    | )        |   | $ | (1,024 | ) |
| Charges to adjust to fair market value                             |   |     | -      |   |     |   | (342   | )        |   |   | (1,683 | ) |
| Loss from discontinued operations - telecom power systems business |   | $        | (156   | )      |     | $      | (436   | )        |   | $ | (2,707 | ) |

|                         |   | June 27, |   |   | June 28, |   |
|------------------------------|--------|----------|--------|--------|----------|--------|
|                         |   | 2010     |   |   | 2009     |   |
| Balance at beginning of year |   | $        | 30,359 |   |     | $      | 30,464 |   |
| Currency translation         |   |     | 84     |   |     |   | (105 | ) |
| Balance at end of year       |   | $        | 30,443 |   |     | $      | 30,359 |   |

----

|            |   | June 27, |   |   | June 28, |   |
|-----------------|--------|----------|--------|--------|----------|--------|
|            |   | 2010     |   |   | 2009     |   |
| Raw materials   |   | $        | 6,858  |   |     | $      | 9,479 |   |
| Work in process |   |     | 1,124  |   |     |   | 909 |   |
| Finished goods  |   |     | 2,303  |   |     |   | 2,229 |   |
| Total inventory |   | $        | 10,285 |   |     | $      | 12,617 |   |

|                                   |   | June 27, |   |   | June 28, |   |
|----------------------------------------|--------|----------|--------|--------|----------|--------|
|                                   |   | 2010     |   |   | 2009     |   |
| Capital lease obligations              |   | $        | 4      |   |     | $      | 15 |   |
| Less current portion                   |   |     | 4      |   |     |   | 11 |   |
| Long-term debt, net of current portion |   | $        | -      |   |     | $      | 4 |   |

----

|                                                                     |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|--------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                                                                     |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| Numerator:                                                               |   |     |   |   |     |   |   |     |   |
| Income (loss) from continuing operations                                 |   | $        | (3,158 | )      |     | $      | 4,969  |     |   | $ | 6,535 |   |
| Income (loss) from discontinued operations                               |   |     | (1,943 | )      |     |   | (1,686 | )        |   |   | 3,484 |   |
| Net income (loss)                                                        |   | $        | (5,101 | )      |     | $      | 3,283  |     |   | $ | 10,019 |   |
|                                                                     |   |     |   |   |     |   |   |     |   |   |   |   |
| Denominator:                                                             |   |     |   |   |     |   |   |     |   |   |   |   |
| Weighted average shares for basic loss per share                         |   |     | 31,078 |   |     |   | 30,851 |     |   |   | 30,367 |   |
| Add dilutive effect of stock options outstanding                         |   |     | 273    |   |     |   | 91     |     |   |   | 226 |   |
| Weighted average shares for diluted loss per share                       |   |     | 31,351 |   |     |   | 30,942 |     |   |   | 30,593 |   |
|                                                                     |   |     |   |   |     |   |   |     |   |   |   |   |
| Income (loss) per share, basic and diluted                               |   |     |   |   |     |   |   |     |   |   |   |   |
| Income (loss) per share from continuing operations - basic               |   | $        | (0.10  | )      |     | $      | 0.16   |     |   | $ | 0.22 |   |
| Income (loss) per share from continuing operations - diluted             |   | $        | (0.10  | )      |     | $      | 0.16   |     |   | $ | 0.21 |   |
| Income (loss) per share from discontinued operations - basic and diluted |   | $        | (0.06  | )      |     | $      | (0.05  | )        |   | $ | 0.11 |   |
| Net income (loss) per share - basic and diluted                          |   | $        | (0.16  | )      |     | $      | 0.11   |     |   | $ | 0.33 |   |

----

|                       |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|----------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| For the years ended        |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| Current                    |   |     |   |   |     |   |   |     |   |
| Federal                    |   | $        | -      |   |     | $      | -      |     |   | $ | - |   |
| State                      |   |     | -      |   |     |   | -      |     |   |   | - |   |
| Foreign                    |   |     | (82    | )      |     |   | 338    |     |   |   | 118 |   |
| Deferred                   |   |     |   |   |     |   |   |     |   |   |   |   |
| Federal                    |   |     | 955    |   |     |   | 977    |     |   |   | 900 |   |
| State and foreign          |   |     | -      |   |     |   | -      |     |   |   | - |   |
| Provision for income taxes |   | $        | 873    |   |     | $      | 1,315  |     |   | $ | 1,018 |   |

|                                               |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|----------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| For the years ended                                |   | 2010     |   |   | 2009     |   |   | 2008     |   |
|                                               |   | Amount   |   |   | %        |   |   | Amount   |   |   | % |   |   | Amount |   |   | % |   |
| Provision (benefit) computed at the statutory rate |   | $        | (800   | )      |     |   | 35.0   |     |   | $ | 2,200 |   |   |   | 35.0 |   |   | $ | 2,644 |   |   |   | 35.0 |   |
| Losses not benefited                               |   |     | 1,770  |   |     |   | (77.5  | )        |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Use of net operating losses                        |   |     | -      |   |     |   |   |     |   |   | (838 | ) |   |   | (13.3 | ) |   |   | (1,455 | ) |   |   | (19.3 | ) |
| Foreign tax rate differential                      |   |     | (97    | )      |     |   | 4.3    |     |   |   | (47 | ) |   |   | (0.8 | ) |   |   | (171 | ) |   |   | (2.2 | ) |
| Total provision for income taxes                   |   | $        | 873    |   |     |   | (38.2  | )        |   | $ | 1,315 |   |   |   | 20.9 |   |   | $ | 1,018 |   |   |   | 13.5 |   |

|                                                                                  |   | June 27, |    |   | June 28, |   |
|---------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
|                                                                                  |   | 2010     |    |   | 2009     |   |
| Deferred tax liabilities                                                              |   |     |    |   |     |   |
| Depreciation and amortization (including differences in the basis of acquired assets) |   | $        | (5,818  | )      |     | $      | (4,863 | ) |
| Total deferred tax liabilities                                                        |   |     | (5,818  | )      |     |   | (4,863 | ) |
|                                                                                  |   |     |    |   |     |   |   |   |
| Deferred tax assets                                                                   |   |     |    |   |     |   |   |   |
| Inventory and other reserves                                                          |   |     | 2,523   |   |     |   | 2,020 |   |
| Net operating loss and capital loss carryforwards                                     |   |     | 89,903  |   |     |   | 85,585 |   |
| Total gross deferred tax assets                                                       |   |     | 92,426  |   |     |   | 87,605 |   |
| Less: valuation allowance                                                             |   |     | (92,426 | )      |     |   | (87,605 | ) |
| Deferred tax assets less valuation allowance                                          |   |     | -       |   |     |   | - |   |
| Net deferred tax liability                                                            |   | $        | (5,818  | )      |     | $      | (4,863 | ) |

----

|                 |   | Minimum  |   |   | Minimum  |   |   | Net      |   |
|----------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                 |   | Lease    |   |   | Sublease |   |   | Lease    |   |
| Fiscal Year          |   | Payments |   |   | Rentals  |   |   | Payments |   |
| 2011                 |   | $        | 1,032  |   |     | $      | 357    |     |   | $ | 675 |   |
| 2012                 |   |     | 544    |   |     |   | -      |     |   |   | 544 |   |
| 2013                 |   |     | 394    |   |     |   | -      |     |   |   | 394 |   |
| 2014                 |   |     | 385    |   |     |   | -      |     |   |   | 385 |   |
| 2015                 |   |     | 129    |   |     |   | -      |     |   |   | 129 |   |
| Thereafter           |   |     | -      |   |     |   | -      |     |   |   | - |   |
| Total lease payments |   | $        | 2,484  |   |     | $      | 357    |     |   | $ | 2,127 |   |

----

----

----

|                                           |   | Options |   |
|------------------------------------------------|--------|---------|--------|
|                                           |   | 2010    |   |   | 2009 |   |   | 2008 |   |
| Expected life in years                         |   |    | 5.7    |   |   |   | 5.7 |   |   |   | 5.6 |   |
| Expected stock price volatility                |   |    | 73.0   | % |   |   | 66.8 | % |   |   | 64.1 | % |
| Risk-free interest rate                        |   |    | 2.1    | % |   |   | 2.9 | % |   |   | 3.0 | % |
| Options granted (in thousands)                 |   |    | 30     |   |   |   | 474 |   |   |   | 350 |   |
| Weighted average fair value of options granted |   | $       | 0.71   |   |   | $ | 1.33 |   |   | $ | 2.26 |   |

----

|                               |   |    |   |   | Weighted- |   |   | Aggregate |   |
|------------------------------------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|
|                               |   |    |   |   | Average   |   |   | Intrinsic |   |
|                               |   |    |   |   | Exercise  |   |   | Value     |   |
|                               |   | Options |   |   | Price     |   |   | ($000's)  |   |
| 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   |      |   | $ | - |   |
|                               |   |    |   |   |      |   |   |      |   |   |   |   |
|   Granted                |   |    | 30     |   |      | $      | 1.11   |      |   |   |   |   |
|   Exercised              |   |    | -      |   |      |   | -      |      |   |   |   |   |
|   Canceled               |   |    | (251   | )      |      |   | 7.81   |      |   |   |   |   |
| Options outstanding, June 27, 2010 |   |    | 2,324  |   |      | $      | 5.16   |      |   | $ | - |   |
|                               |   |    |   |   |      |   |   |      |   |   |   |   |
| Exercisable options, June 29, 2008 |   |    | 2,992  |   |      | $      | 7.97   |      |   | $ | 241 |   |
| Exercisable options, June 28, 2009 |   |    | 1,841  |   |      | $      | 6.50   |      |   | $ | - |   |
| Exercisable options, June 27, 2010 |   |    | 1,918  |   |      | $      | 5.72   |      |   | $ | - |   |

|                              |          |   | Exercisable |   |   | Outstanding |   |
|-----------------------------------|---------------|--------|-------------|--------|--------|-------------|--------|
|                              |          |   |        |   |   | Weighted    |   |   | Weighted |   |   |   |   |   | Weighted |   |   | Weighted |   |
|                              |          |   |        |   |   | average     |   |   | average |   |   |   |   |   | average |   |   | average |   |
|                              |          |   |        |   |   | exercise    |   |   | remaining |   |   |   |   |   | exercise |   |   | remaining |   |
|                              |          |   | Options     |   |   | price per   |   |   | contractual |   |   | Options |   |   | price per |   |   | contractual |   |
| Range of exercise price per share |          |   | exercisable |   |   | share       |   |   | life (years) |   |   | outstanding |   |   | share |   |   | life (years) |   |
|                              |          |   |        |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                 | 1.11 - $2.50  |   |        |   | 185    |        |   | $ | 2.13 |   |   |   | 8.4 |   |   |   | 497 |   |   | $ | 2.14 |   |   |   | 8.5 |   |
| $                                 | 2.51 - $5.00  |   |        |   | 733    |        |   |   | 3.74 |   |   |   | 2.8 |   |   |   | 815 |   |   |   | 3.72 |   |   |   | 3.3 |   |
| $                                 | 5.01 - $7.50  |   |        |   | 479    |        |   |   | 6.30 |   |   |   | 2.9 |   |   |   | 492 |   |   |   | 6.28 |   |   |   | 3.0 |   |
| $                                 | 7.51 - $10.00 |   |        |   | 318    |        |   |   | 8.13 |   |   |   | 2.1 |   |   |   | 318 |   |   |   | 8.13 |   |   |   | 2.1 |   |
| Over $10.00                       |          |   |        | 203    |   |        |   | 11.01 |   |   |   | 0.9 |   |   |   | 203 |   |   |   | 11.01 |   |   |   | 0.9 |   |
| Total                             |          |   |        | 1,918  |   |        | $      | 5.72 |   |   |   | 3.0 |   |   |   | 2,324 |   |   | $ | 5.16 |   |   |   | 4.0 |   |

----

|                      |   |   |   |   | Weighted   |   |   | Fair value   |   |
|---------------------------|--------|--------|--------|--------|------------|--------|--------|--------------|--------|
|                      |   |   |   |   | average    |   |   | of vested    |   |
|                      |   |   |   |   | grant date |   |   | shares at    |   |
|                      |   | Shares |   |   | fair value |   |   | vesting date |   |
| 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   |         |   |   |   |   |
|                      |   |   |   |   |       |   |   |         |   |   |   |   |
|   Granted       |   |   | 646    |   |       | $      | 1.31   |         |   |   |   |   |
|   Vested        |   |   | (123   | )      |       |   | 4.15   |         |   | $ | 202 |   |
|   Forfeited     |   |   | (59    | )      |       |   | 1.79   |         |   |   |   |   |
| Unvested at June 27, 2010 |   |   | 634    |   |       | $      | 1.53   |         |   |   |   |   |

----

|                                               | 2010                      | 2009                      |
|----------------------------------------------------|---------------------------|---------------------------|
| Discount rate used to determine benefit obligation | 5.10%                     | 6.25%                     |
| Discount rate used to determine benefit cost       | 6.25%                     | 6.75%                     |
| Expected return on plan assets                     | 8.50%                     | 9.00%                     |
| Measurement date for pension benefit obligations   |   June 27, 2010 |   June 28, 2009 |

|                                                   |   | June 27, |    |   | June 28, |   |
|--------------------------------------------------------|--------|----------|---------|--------|----------|--------|
|                                                   |   | 2010     |    |   | 2009     |   |
| Change in Benefit Obligation:                          |   |     |    |   |     |   |
| Benefit obligation at beginning of year                |   | $        | 179,056 |   |     | $      | 171,585 |   |
| Interest cost                                          |   |     | 10,821  |   |     |   | 11,196 |   |
| Actuarial loss                                         |   |     | 18,635  |   |     |   | 8,627 |   |
| Benefits paid                                          |   |     | (12,206 | )      |     |   | (12,352 | ) |
| Benefit obligation at end of year                      |   | $        | 196,306 |   |     | $      | 179,056 |   |
|                                                   |   |     |    |   |     |   |   |   |
| Change in Plan Assets:                                 |   |     |    |   |     |   |   |   |
| Fair value of plan assets at beginning of year         |   | $        | 102,207 |   |     | $      | 133,947 |   |
| Actual return on plan assets                           |   |     | 12,804  |   |     |   | (28,810 | ) |
| Employer contributions                                 |   |     | 15,587  |   |     |   | 9,422 |   |
| Benefits paid                                          |   |     | (12,206 | )      |     |   | (12,352 | ) |
| Fair value of plan assets at end of year               |   | $        | 118,392 |   |     | $      | 102,207 |   |
|                                                   |   |     |    |   |     |   |   |   |
| Funded status                                          |   | $        | (77,914 | )      |     | $      | (76,849 | ) |
| Unrecognized net actuarial loss                        |   |     | 174,265 |   |     |   | 165,819 |   |
| Prepaid benefit cost                                   |   | $        | 96,351  |   |     | $      | 88,970 |   |
|                                                   |   |     |    |   |     |   |   |   |
| Amounts Recognized in Statement of Financial Position: |   |     |    |   |     |   |   |   |
| Pension benefit obligations, net                       |   | $        | (77,914 | )      |     | $      | (76,849 | ) |
| Accumulated other comprehensive loss                   |   |     | 174,265 |   |     |   | 165,819 |   |
| Net amount recognized                                  |   | $        | 96,351  |   |     | $      | 88,970 |   |

----

|                                       |   | Pension Benefits |   |
|--------------------------------------------|--------|------------------|--------|
| Fiscal year ended                          |   | June 27,         |   |   | June 28, |   |   | June 29, |   |
| Components of Net Periodic Benefit Cost:   |   | 2010             |   |   | 2009 |   |   | 2008 |   |
|   Interest cost                  |   | $                | 10,821 |   |   | $ | 11,195 |   |   | $ | 10,425 |   |
|   Expected return on plan assets |   |             | (8,825 | ) |   |   | (12,130 | ) |   |   | (13,619 | ) |
|   Recognized net actuarial loss  |   |             | 6,210  |   |   |   | 4,320 |   |   |   | 3,380 |   |
|   Net periodic benefit cost      |   | $                | 8,206  |   |   | $ | 3,385 |   |   | $ | 186 |   |

----

|                                     |   |          |    |   | Quoted Prices             |   |   | Significant     |   |   | Significant  |   |
|------------------------------------------|--------|---------------|---------|--------|---------------------------|--------|--------|-----------------|--------|--------|--------------|--------|
|                                     |   |          |    |   | in Active Markets         |   |   | Other Obsevable |   |   | Unobservable |   |
|                                     |   | Balance as of |    |   | for Identical Assets |   |   | Inputs          |   |   | Inputs       |   |
| Retirement Plan Assets                   |   | June 27, 2010 |    |   | (Level 1)                 |   |   | (Level 2)       |   |   | (Level 3)    |   |
| Cash and cash equivalents                |   | $             | 3,032   |   |                      | $      | 3,032  |            |   | $      | -            |   |   | $ | - |   |
|                                     |   |          |    |   |                      |   |   |            |   |   |         |   |   |   |   |   |
| Equity holdings:                         |   |          |    |   |                      |   |   |            |   |   |         |   |   |   |   |   |
|    U.S. large cap         |   |          | 36,015  |   |                      |   | 36,015 |            |   |   | -            |   |   |   | - |   |
|    U.S. small cap         |   |          | 10,051  |   |                      |   | 10,051 |            |   |   | -            |   |   |   | - |   |
|    International equity   |   |          | 11,555  |   |                      |   | 11,555 |            |   |   | -            |   |   |   | - |   |
|    Emerging market equity |   |          | 1,166   |   |                      |   | 1,166  |            |   |   | -            |   |   |   | - |   |
| Total equity holdings                    |   |          | 58,787  |   |                      |   | 58,787 |            |   |   | -            |   |   |   | - |   |
|                                     |   |          |    |   |                      |   |   |            |   |   |         |   |   |   |   |   |
| Fixed income holdings:                   |   |          |    |   |                      |   |   |            |   |   |         |   |   |   |   |   |
|    Core fixed income      |   |          | 21,705  |   |                      |   | -      |            |   |   | 21,705       |   |   |   | - |   |
|    High yield bond        |   |          | 6,884   |   |                      |   | -      |            |   |   | 6,884        |   |   |   | - |   |
|    Emerging market debt   |   |          | 3,030   |   |                      |   | -      |            |   |   | 3,030        |   |   |   | - |   |
| Total fixed income holdings              |   |          | 31,619  |   |                      |   | -      |            |   |   | 31,619       |   |   |   | - |   |
|                                     |   |          |    |   |                      |   |   |            |   |   |         |   |   |   |   |   |
| Limited partnership holdings             |   |          | 24,954  |   |                      |   | -      |            |   |   | -            |   |   |   | 24,954 |   |
|                                     |   |          |    |   |                      |   |   |            |   |   |         |   |   |   |   |   |
| Total Retirement Plan assets             |   | $             | 118,392 |   |                      | $      | 61,819 |            |   | $      | 31,619       |   |   | $ | 24,954 |   |

|                         |   | Limited     |   |
|------------------------------|--------|-------------|--------|
|                         |   | Partnership |   |
|                         |   | Holdings    |   |
| Balance, beginning of period |   | $           | 32,635 |   |
| Return on plan assets        |   |        | 319    |   |
| Redemptions                  |   |        | (8,000 | ) |
| Balance, end of period       |   | $           | 24,954 |   |

|        |   | Benefit |   |
|-------------|--------|---------|--------|
| Fiscal Year |   | Payment |   |
| 2011        |   | $       | 12,760 |   |
| 2012        |   |    | 12,754 |   |
| 2013        |   |    | 12,861 |   |
| 2014        |   |    | 13,048 |   |
| 2015        |   |    | 13,057 |   |
| 2016-2020   |   |    | 65,804 |   |

----

|                                    |   | June 27, |   |   | June 28, |   |
|-----------------------------------------|--------|----------|--------|--------|----------|--------|
|                                    |   | 2010     |   |   | 2009     |   |
| Balance at beginning of year            |   | $        | 374    |   |     | $      | 493 |   |
| Additions charged to earnings           |   |     | 719    |   |     |   | 299 |   |
| Use of reserve for warranty obligations |   |     | (502   | )      |     |   | (418 | ) |
| Balance at end of year                  |   | $        | 591    |   |     | $      | 374 |   |

|                                                     |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|----------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Fiscal year ended                                        |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| (Increase) decrease in accounts receivable               |   | $        | (4,838 | )      |     | $      | 7,002  |     |   | $ | (496 | ) |
| (Increase) decrease in inventories                       |   |     | 2,332  |   |     |   | (92    | )        |   |   | (30 | ) |
| (Increase) decrease in prepaids and other current assets |   |     | 762    |   |     |   | 891    |     |   |   | (233 | ) |
| (Increase) decrease in other assets                      |   |     | 131    |   |     |   | 647    |     |   |   | (250 | ) |
| Increase (decrease) in accounts payable                  |   |     | 4,171  |   |     |   | (4,691 | )        |   |   | (1,831 | ) |
| Increase (decrease) in accrued liabilities               |   |     | (1,728 | )      |     |   | (1,428 | )        |   |   | 183 |   |
| Increase (decrease) in operating assets and liabilities  |   | $        | 830    |   |     | $      | 2,329  |     |   | $ | (2,657 | ) |
|                                                     |   |     |   |   |     |   |   |     |   |   |   |   |
| Cash paid for interest and income taxes :                |   |     |   |   |     |   |   |     |   |   |   |   |
| Interest                                                 |   | $        | -      |   |     | $      | -      |     |   | $ | 34 |   |
| Income taxes                                             |   | $        | 323    |   |     | $      | 271    |     |   | $ | 148 |   |

----

|                                                                     |   | June 27, |     |   | June 28, |   |
|--------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
|                                                                     |   | 2010     |     |   | 2009     |   |
| Unrecognized pension plan liabilities, net of $17,000 income tax benefit |   | $        | (157,265 | )      |     | $      | (148,819 | ) |
| Foreign currency translation adjustments                                 |   |     | 673      |   |     |   | 646 |   |
| Accumulated other comprehensive loss                                     |   | $        | (156,592 | )      |     | $      | (148,173 | ) |

|                          |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|-------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| For the fiscal year           |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| Sales                         |   | $        | 7,446  |   |     | $      | 14,355 |     |   | $ | 13,054 |   |
| Income from operations        |   |     | 207    |   |     |   | 721    |     |   |   | 854 |   |
| Identifiable assets           |   |     | 5,151  |   |     |   | 7,714  |     |   |   | 9,103 |   |
| Capital expenditures          |   |     | -      |   |     |   | 138    |     |   |   | 23 |   |
| Depreciation and amortization |   |     | 65     |   |     |   | 58     |     |   |   | 58 |   |

----

|                                                                         |   | Sep 27, |   |   | Dec 27, |   |   | Mar 28, |   |   | Jun 27, |   |
|------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Fiscal 2010 quarter ended                                                    |   | 2009    |   |   | 2009    |   |   | 2010    |   |   | 2010    |   |
| Net sales                                                                    |   | $       | 17,834 |   |    | $      | 19,232 |    |   | $      | 19,185  |   |   | $ | 24,320 |   |
| Gross profit                                                                 |   |    | 5,622  |   |    |   | 5,878  |    |   |   | 5,464   |   |   |   | 7,164 |   |
| Income from operations                                                       |   |    | (1,290 | )      |    |   | (756   | )       |   |   | (1,166  | )      |   |   | 898 |   |
| Income from continuing operations before income taxes                        |   |    | (1,280 | )      |    |   | (750   | )       |   |   | (1,155  | )      |   |   | 900 |   |
| Provision for income taxes                                                   |   |    | 231    |   |    |   | 130    |    |   |   | 251     |   |   |   | 261 |   |
| Income (loss) from continuing operations                                     |   |    | (1,511 | )      |    |   | (880   | )       |   |   | (1,406  | )      |   |   | 639 |   |
| Loss from discontinued operations                                            |   |    | (284   | )      |    |   | (345   | )       |   |   | (207    | )      |   |   | (1,107 | ) |
| Net loss                                                                     |   | $       | (1,795 | )      |    | $      | (1,225 | )       |   | $      | (1,613  | )      |   | $ | (468 | ) |
| Per common share:                                                            |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|    Basic and diluted:                                         |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|       Income (loss) from continuing operations |   | $       | (0.05  | )      |    | $      | (0.03  | )       |   | $      | (0.05   | )      |   | $ | 0.02 |   |
|       Loss from discontinued operations        |   | $       | (0.01  | )      |    | $      | (0.01  | )       |   | $      | (0.01   | )      |   | $ | (0.04 | ) |
|       Net loss                                 |   | $       | (0.06  | )      |    | $      | (0.04  | )       |   | $      | (0.05   | )      |   | $ | (0.01 | ) |

|                                                                           |   | 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 (benefit) 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 |   |

----

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

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