UNITED STATES
                        SECURITIES & EXCHANGE COMMISSION

                             Washington, D.C. 20549

                            -------------------------

                                    FORM 10-Q

|X| The Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the three months ended July 1, 2005, or

|_| Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from ______________ to ______________.

Commission File No. 1-5375

                                TECHNITROL, INC.
             (Exact name of registrant as specified in its Charter)

            PENNSYLVANIA                                       23-1292472
   (State or other jurisdiction of                           (IRS Employer
    incorporation or organization)                       Identification Number)

   1210 Northbrook Drive, Suite 470
        Trevose, Pennsylvania                                    19053
 (Address of principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code:           215-355-2900

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2)  has  been  subject  to the  filing
requirements for at least the past 90 days.      YES |X|      NO |_|

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act.)      YES |X|      NO |_|

Common Stock - Shares Outstanding as of July 28, 2005:     40,529,568

(Indicate the number of shares  outstanding  of each of the issuer's  classes of
Common Stock, as of the latest practicable dates.)


                                       1
<PAGE>

                          PART I. FINANCIAL INFORMATION

Item 1:  Financial Statements

                        Technitrol, Inc. and Subsidiaries

                           Consolidated Balance Sheets

                                  In thousands

<TABLE>
<CAPTION>
                                                                            July 1,  December 31,
                            Assets                                             2005          2004
                                                                        -----------   -----------
                                                                        (unaudited)
<S>                                                                     <C>           <C>
Current assets:
   Cash and cash equivalents                                            $   182,111   $   155,952
   Trade receivables, net                                                   105,714       109,652
   Inventories                                                               65,303        77,481
   Assets of discontinued operations held for sale                            4,346            --
   Prepaid expenses and other current assets                                 16,545        20,917
                                                                        -----------   -----------
       Total current assets                                                 374,019       364,002

Property, plant and equipment                                               201,768       233,563
   Less accumulated depreciation                                            119,774       131,387
                                                                        -----------   -----------
       Net property, plant and equipment                                     81,994       102,176
Deferred income taxes                                                         8,245         8,898
Goodwill                                                                     97,687       126,178
Other intangibles, net                                                        9,334        22,685
Other assets                                                                  2,353         2,648
                                                                        -----------   -----------
                                                                        $   573,632   $   626,587
                                                                        ===========   ===========

       Liabilities and Shareholders' Equity
Current liabilities:
   Current installments of long-term debt                               $       121   $       130
   Short-term debt                                                            4,735         6,717
   Accounts payable                                                          45,055        48,655
   Liabilities of discontinued operations held for sale                       2,576            --
   Accrued expenses                                                          72,405        69,602
                                                                        -----------   -----------
       Total current liabilities                                            124,892       125,104

Long-term liabilities:
   Long-term debt, excluding current installments                             6,217         7,125
   Other long-term liabilities                                               14,174        14,766

Minority interest                                                            14,444        14,730

Shareholders' equity:
   Common stock and additional paid-in capital                              215,376       213,694
   Retained earnings                                                        194,859       239,752
   Deferred compensation                                                     (2,018)       (1,968)
   Other comprehensive income                                                 5,688        13,384
                                                                        -----------   -----------
       Total shareholders' equity                                           413,905       464,862
                                                                        -----------   -----------
                                                                        $   573,632   $   626,587
                                                                        ===========   ===========
</TABLE>

See accompanying Notes to Unaudited Consolidated Financial Statements.


                                       2
<PAGE>

                        Technitrol, Inc. and Subsidiaries

                      Consolidated Statements of Operations

                                   (Unaudited)
                       In thousands, except per share data

<TABLE>
<CAPTION>
                                                                           Three Months Ended         Six Months Ended
                                                                          July 1,    June 25,      July 1,    June 25,
                                                                             2005        2004         2005        2004
                                                                        ---------   ---------    ---------   ---------
<S>                                                                     <C>         <C>          <C>         <C>
Net sales                                                               $ 143,305   $ 141,301    $ 284,696   $ 276,591

Costs and expenses:
   Cost of sales                                                          110,766     102,060      218,188     199,639
   Selling, general and administrative expenses                            26,512      28,137       52,114      55,544
   Severance and asset impairment expense                                  48,261       1,484       49,203       4,341
                                                                        ---------   ---------    ---------   ---------

       Total costs and expenses applicable to sales                       185,539     131,681      319,505     259,524
                                                                        ---------   ---------    ---------   ---------

Operating (loss) profit                                                   (42,234)      9,620      (34,809)     17,067

Other income (expense):
   Interest income (expense), net                                             541        (153)         781        (305)
   Equity method investment earnings                                           --         257           --         392
   Other                                                                     (471)      1,290         (891)        576
                                                                        ---------   ---------    ---------   ---------

       Total other income (expense)                                            70       1,394         (110)        663
                                                                        ---------   ---------    ---------   ---------

(Loss) earnings from continuing operations before taxes
  and minority interest                                                   (42,164)     11,014      (34,919)     17,730

Income taxes                                                                  899       1,775        2,474       2,818

Minority interest                                                             497          --          718          --
                                                                        ---------   ---------    ---------   ---------

Net (loss) earnings from continuing operations                          $ (43,560)  $   9,239    $ (38,111)  $  14,912
Net earnings from discontinued operations, net of taxes                       646          35          306         127
                                                                        ---------   ---------    ---------   ---------
Net (loss) earnings                                                     $ (42,914)  $   9,274    $ (37,805)  $  15,039
                                                                        =========   =========    =========   =========

Basic and diluted (loss) earnings per share
from continuing operations                                              $   (1.08)  $    0.23    $   (0.95)  $    0.37
                                                                        =========   =========    =========   =========
Basic and diluted earnings per share
from discontinued operations                                            $    0.02   $    0.00    $    0.01   $    0.00
                                                                        =========   =========    =========   =========
Basic and diluted (loss) earnings per share                             $   (1.06)  $    0.23    $   (0.94)  $    0.37
                                                                        =========   =========    =========   =========
</TABLE>

See accompanying Notes to Unaudited Consolidated Financial Statements.


                                        3
<PAGE>

                        Technitrol, Inc. and Subsidiaries

                      Consolidated Statements of Cash Flows

                                   (Unaudited)

                                  In thousands
<TABLE>
<CAPTION>
                                                                             Six Months Ended
                                                                            July 1,     June 25,
                                                                               2005         2004
                                                                          ---------    ---------
<S>                                                                       <C>          <C>
Cash flows from operating activities:
Net (loss) earnings                                                       $ (38,111)   $  14,912
Adjustments to reconcile net (loss) earnings to net cash provided
  by operating activities:
    Depreciation and amortization                                            10,948       11,801
    Tax effect of employee stock compensation                                    98           --
    Amortization of stock incentive plan expense                              1,686        1,665
    Minority interest in net earnings of consolidated subsidiary                286           --
    Severance and asset impairment expense, net of cash payments             47,060        2,800
    Changes in assets and liabilities, net of effect of acquisitions:
      Trade receivables                                                      (4,645)      (6,573)
      Inventories                                                             1,890       (7,219)
      Prepaid expenses and other current assets                               3,188          595
      Accounts payable and accrued expenses                                     (81)       4,489
    Other, net                                                                3,534       (4,234)
                                                                          ---------    ---------
       Net cash provided by operating activities                             25,853       18,236
                                                                          ---------    ---------

Cash flows from investing activities:
    Acquisitions, net of cash acquired                                       (1,240)      (4,050)
    Proceeds from sale of business                                            6,724           --
    Capital expenditures                                                     (8,204)      (3,866)
    Proceeds from sale of property, plant and equipment                         975          413
    Foreign currency impact on intercompany lending                           8,501        1,882
                                                                          ---------    ---------
       Net cash provided by (used in) investing activities                    6,756       (5,621)
                                                                          ---------    ---------

Cash flows from financing activities:
    Principal payments of long-term debt, net                                   (90)        (322)
    Principal payments of short-term debt, net                               (1,982)          --
    Dividends paid                                                           (3,541)          --
    Sale of stock through employee stock purchase plan                           --          427
                                                                          ---------    ---------
       Net cash (used in) provided by financing activities                   (5,613)         105
                                                                          ---------    ---------

Net effect of exchange rate changes on cash                                  (2,066)        (893)
                                                                          ---------    ---------

Net increase in cash and cash equivalents from continuing
 operations                                                                  24,930       11,827

Net increase (decrease) in cash and cash equivalents
 from discontinued operations                                                 1,229       (1,222)
                                                                          ---------    ---------

Cash and cash equivalents at beginning of period                            155,952      143,448
                                                                          ---------    ---------

Cash and cash equivalents at end of period                                $ 182,111    $ 154,053
                                                                          =========    =========
</TABLE>

See accompanying Notes to Unaudited Consolidated Financial Statements.


                                        4
<PAGE>

                        Technitrol, Inc. and Subsidiaries

            Consolidated Statement of Changes in Shareholders' Equity

                          Six Months Ended July 1, 2005

                                   (Unaudited)
                                  In thousands

<TABLE>
<CAPTION>

                                                                                           Other
                                                                                   ---------------------
                                                                                             Accumulated
                                                    Common stock and                               other
                                                     paid-in capital               Deferred      compre-     Compre-
                                                 --------------------   Retained    compen-      hensive     hensive
                                                   Shares      Amount   earnings     sation       income       (loss)
                                                 --------   ---------   --------   --------   ----------   ---------
<S>                                                <C>      <C>         <C>        <C>        <C>          <C>
Balance at December 31, 2004                       40,448   $ 213,694   $239,752   $ (1,968)  $   13,384
Stock options, awards and related compensation         21         594         --         28           --
Tax effect of stock compensation                       --         (54)        --         --           --
Currency translation adjustments                       --          --         --         --       (3,514)  $  (3,514)
Net earnings                                           --          --      5,109         --           --       5,109
                                                                                                           ---------
Comprehensive income                                   --          --         --         --           --   $   1,595
                                                                                                           =========
Dividends declared ($0.0875 per share)                 --          --     (3,541)        --           --
                                                 --------   ---------   --------   --------   ----------
Balance at April 1, 2005                           40,469     214,234    241,320     (1,940)       9,870
Stock options, awards and related compensation         61         990         --        (78)          --
Tax effect of stock compensation                       --         152         --         --           --
Currency translation adjustments                       --          --         --         --       (4,182)  $  (4,182)
Net (loss)                                             --          --    (42,914)        --           --     (42,914)
                                                                                                           ---------
Comprehensive (loss)                                   --          --         --         --           --   $ (47,096)
                                                                                                           =========
Dividends declared ($0.0875 per share)                 --          --     (3,547)        --           --
                                                 --------   ---------   --------   --------   ----------
Balance at July 1, 2005                            40,530   $ 215,376   $194,859   $ (2,018)  $    5,688
                                                 ========   =========   ========   ========   ==========
</TABLE>

See accompanying Notes to Unaudited Consolidated Financial Statements.


                                       5
<PAGE>

                        Technitrol, Inc. and Subsidiaries

              Notes to Unaudited Consolidated Financial Statements

(1)   Accounting Policies

      For a complete description of the accounting policies of Technitrol, Inc.
and its consolidated subsidiaries, refer to Note 1 of Notes to Consolidated
Financial Statements included in Technitrol's Form 10-K filed for the year ended
December 31, 2004. We sometimes refer to Technitrol as "we" or "our".

      The results for the six months ended July 1, 2005 and June 25, 2004 have
been prepared by our management without audit by our independent auditors. In
the opinion of management, the financial statements fairly present in all
material respects, the financial position and results of operations for the
periods presented. To the best of our knowledge and belief, all adjustments have
been made to properly reflect income and expenses attributable to the periods
presented. Except for severance and asset impairment expenses, all such
adjustments are of a normal recurring nature. Operating results for the six
months ended July 1, 2005 are not necessarily indicative of annual results.

      New Accounting Pronouncements

      In December 2004, the FASB issued SFAS No. 123 (revised 2004), Share-Based
Payment, ("SFAS No. 123(R)"), which amends SFAS No. 123, Accounting for
Stock-Based Compensation, and supersedes APB Opinion No. 25, Accounting for
Stock Issued to Employees. SFAS No. 123(R) requires compensation expense to be
recognized for all share-based payments made to employees based on the fair
value of the award at the date of grant, eliminating the intrinsic value
alternative allowed by SFAS No. 123. Generally, the approach to determining fair
value under the original pronouncement has not changed, however, there are
revisions to the accounting guidelines established, such as accounting for
forfeitures. SFAS No. 123(R) is effective for the beginning of our fiscal 2006.
Adoption of this standard is not expected to have a material impact on our
revenue, operating results, financial position or liquidity.

      In December 2004, the FASB issued FASB Staff Position No. FAS 109-2 ("FAS
109-2"), Accounting and Disclosure Guidance for the Foreign Earnings
Repatriation Provision within the American Jobs Creations Act of 2004. The
American Jobs Creation Act ("AJCA") introduces a limited time 85% dividends
received deduction on the repatriation of certain foreign earnings to a U.S.
taxpayer (repatriation provision), provided certain criteria are met. FAS 109-2
provides accounting and disclosure guidance for the repatriation provision.
Although FAS 109-2 is effective immediately, we do not expect to be able to
complete our evaluation of the repatriation provision until after sources and
uses of cash for the remainder of 2005 are finalized in terms of location (U.S.
or foreign), amounts and timing.

      In November 2004, the FASB issued Statement No. 151, Inventory Costs or
Amendment of ARB No.43, Chapter 4 ("SFAS 151"). SFAS 151 provides for certain
fixed production overhead cost to be reflected as a period cost and not
capitalized as inventory. SFAS 151 is effective for the beginning of our fiscal
2006. Adoption of this standard is not expected to have a material impact on our
revenue, operating results, financial position or liquidity.

      Reclassifications

      Certain amounts in the prior year financial statements have been
reclassified to conform with the current year presentation.


                                       6
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(2)   Acquisitions

      Full Rise Electronic Co., Ltd. (FRE): FRE is based in the Republic of
China (Taiwan) and manufactures connector products, including single and
multiple-port jacks, and supplies products to us under a cooperation agreement.
In April 2001, we made a minority investment in the common stock of FRE, which
was accounted for by the cost-basis method of accounting. On July 27, 2002, we
made an additional investment in FRE of $6.7 million which increased the total
investment to $20.9 million. As a result of the increased ownership percentage
to approximately 29%, we began to account for the investment under the equity
method of accounting beginning in the three months ended September 27, 2002.
Shares of FRE began trading on the Taiwan Stock Exchange in January 2003, and
they experienced considerable price volatility. In the three months ended
December 26, 2003, we recorded an $8.7 million net loss to adjust our original
cost basis of the investment to market value. In July 2004, we purchased an
additional 9.0 million shares of common stock in FRE for $10.5 million. On
September 13, 2004, we acquired an additional 2.4 million shares of common stock
in FRE for $2.5 million, bringing our ownership percentage up to 51%.
Accordingly, FRE's operating results were consolidated with our own beginning
September 13, 2004. Our net earnings therefore reflect FRE's net earnings, after
deducting the minority interest due to the minority shareholders. During the six
months ended July 1, 2005, we acquired an additional 1.4 million shares of
common stock in FRE for $1.2 million, bringing our ownership percentage up to
54%. Additional purchases of common stock in FRE are allocated, on a pro rata
basis, to goodwill, identifiable intangible assets, and property, plant, and
equipment according to amounts recorded as of September 13, 2004. The fair value
of the net tangible assets acquired through September 13, 2004 approximated
$28.8 million, less a minority interest of $14.0 million. Based on the fair
value of net tangible assets acquired and our current ownership percentage, the
allocation of the investment to intangibles includes $0.5 million for
technology, $0.6 million for trademarks, $2.1 million for customer relationships
and $9.3 million of goodwill. All of the separately identifiable intangibles are
being amortized, with useful lives of 4 years for technology and customer
relationships.

(3)   Severance and asset impairment expense

      In the six months ended July 1, 2005, we accrued $3.2 million for a number
of actions to streamline operations at Pulse and AMI Doduco. These include
severance and related payments comprised of $1.0 million related to Pulse's
termination of manufacturing and support personnel at a facility in Italy and
Turkey, $1.2 million related to AMI Doduco's termination of manufacturing and
support personnel at a facility in Italy, $0.3 million related to the Pulse's
termination of a lease in China, and $0.7 million for severance at other
locations. The majority of these accruals will be paid by December 31, 2005,
except for remaining lease or severance payments to be made over a specified
term. Additionally, in the quarter ended July 1, 2005, we recorded a $46.0
million impairment charge of Pulse Consumer Division assets consisting of $25.6
million of goodwill, $11.5 million of identifiable intangibles, and $8.9 million
of property, plant, and equipment. These impairments resulted from updated cash
flow projections which reflect the shift of production by Pulse to China-based
locations, decreasing average selling prices for television transformers, and
the overall decline in the European television market. We expect to accrue an
additional $1.0 million of severance in the third quarter of 2005 in connection
with the termination of manufacturing and support personnel in the Consumer
Division. Additionally, we expect to accrue an additional $0.8 million in
contract termination costs and asset impairments at AMI Doduco's facility in
Italy in the third quarter of 2005.

      In the six months ended June 25, 2004, we accrued $4.3 million for
severance and related payments comprised of $2.5 million related to AMI Doduco's
termination of manufacturing and support


                                       7
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(3)   Severance and asset impairment expense, continued

personnel at a facility in Germany, $0.8 million related to the termination of
manufacturing and support personnel at a facility in France, $0.7 million
related to Pulse's shutdown of a facility in Carlsbad, California and $0.3
million for other severances in various locations. The vast majority of these
accruals were utilized by December 31, 2004. We accrued an additional $2.0
million of severance and asset impairment expense in the third quarter of 2004
in connection with the completion of the shutdown of the AMI Doduco facility in
France and the termination of manufacturing and support personnel in Germany.

      Our severance and asset impairment charges are summarized on a
      year-to-date basis for 2005 as follows (in millions):

                                                      AMI
                                                   Doduco     Pulse     Total
                                                  -------   -------   -------
      Balance accrued at December 31, 2004        $   1.8   $   1.2   $   3.0
      Accrued during the six  months ended
       July 1, 2005                                   1.5      47.7      49.2
      Severance and other cash payments              (0.8)     (1.2)     (2.0)
      Non-cash asset disposals                       (0.4)    (46.0)    (46.4)
                                                  -------   -------   -------
      Balance accrued at July 1, 2005             $   2.1   $   1.7   $   3.8
                                                  =======   =======   =======
(4)   Inventories

      Inventories consisted of the following (in thousands):

                                     July 1,     December 31,
                                        2005             2004
                                   ---------     ------------
      Finished goods               $  26,620       $   27,394
      Work in process                 18,008           20,312
      Raw materials and supplies      20,675           29,775
                                   ---------       ----------
                                   $  65,303       $   77,481
                                   =========       ==========

(5)   Derivatives and Other Financial Instruments

      We utilize derivative financial instruments, primarily forward exchange
contracts, to manage foreign currency risks. While these hedging instruments are
subject to fluctuations in value, such fluctuations are generally offset by the
value of the underlying exposures being hedged.

      At July 1, 2005, we had one foreign exchange forward contract outstanding
to sell forward approximately 50.7 million euros in the aggregate, in order to
hedge intercompany loans. The term of this contract was approximately 30 days
although we routinely settle such obligations and enter into new 30-day
contracts each month. We had no other derivative instruments at July 1, 2005. In
addition, management believes that there is no material risk of loss from
changes in inherent market rates or prices in our other financial instruments.


                                       8
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(6)   Earnings Per Share

      Basic earnings per share are calculated by dividing net earnings by the
weighted average number of common shares outstanding (excluding restricted
shares) during the period. We had unvested restricted shares outstanding of
approximately 226,000 and 256,000 as of July 1, 2005 and June 25, 2004,
respectively. For calculating diluted earnings per share, common share
equivalents and unvested restricted stock outstanding are added to the weighted
average number of common shares outstanding. Common share equivalents are
comprised of outstanding options to purchase common stock and the amount of
compensation cost attributed to future services not yet recognized as calculated
using the treasury stock method. There were no common share equivalents for the
three and six months ended July 1, 2005, as the exercise prices of outstanding
share options were greater than the average stock price for the period. There
were approximately 516,000 stock options outstanding as of July 1, 2005 and
approximately 457,000 as of June 25, 2004.

Earnings (loss) per share calculations are as follows (in thousands, except per
share amounts):

<TABLE>
<CAPTION>
                                                    Three Months Ended          Six Months Ended
                                                    July 1,      June 25,      July 1,      June 25,
                                                       2005          2004         2005          2004
                                                 ----------    ----------   ----------    ----------
<S>                                              <C>           <C>          <C>           <C>
Net (loss) earnings from continuing operations   $  (43,560)   $    9,239   $  (38,111)   $   14,912
Net earnings from discontinued operations               646            35          306           127
                                                 ----------    ----------   ----------    ----------
Net (loss) earnings                              $  (42,914)   $    9,274   $  (37,805)   $   15,039

Basic (loss) earnings per share:
  Shares                                             40,296        40,164       40,270        40,142
  Continuing operations                          $    (1.08)   $     0.23   $    (0.95)   $     0.37
  Discontinued operations                              0.02          0.00         0.01          0.00
                                                 ----------    ----------   ----------    ----------
  Per share amount                               $    (1.06)   $     0.23   $    (0.94)   $     0.37
                                                 ==========    ==========   ==========    ==========

Diluted (loss) earnings per share:
  Shares                                             40,296        40,408       40,270        40,364
  Continuing operations                          $    (1.08)   $     0.23   $    (0.95)   $     0.37
  Discontinued operations                              0.02          0.00         0.01          0.00
                                                 ----------    ----------   ----------    ----------
  Per share amount                               $    (1.06)   $     0.23   $    (0.94)   $     0.37
                                                 ==========    ==========   ==========    ==========
</TABLE>


                                       9
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(7)   Business Segment Information

      For the three and six months ended July 1, 2005 and June 25, 2004 there
were immaterial amounts of intersegment revenues eliminated in consolidation.
There has been no material change in segment assets from December 31, 2004 to
July 1, 2005, except for the impairment writedown in the Pulse Consumer
Division. In addition, the basis for determining segment financial information
has not changed from 2004. Specific segment data are as follows:

<TABLE>
<CAPTION>
                                                                       Three Months Ended             Six Months Ended
                                                                    July 1,      June 25,        July 1,      June 25,
Net sales:                                                             2005          2004           2005          2004
                                                                 ----------    ----------     ----------    ----------
<S>                                                              <C>            <C>           <C>           <C>
   Pulse                                                         $   78,350     $  81,456     $  153,928    $  158,993
   AMI Doduco                                                        64,955        59,845        130,768       117,598
                                                                 ----------     ---------     ----------    ----------
      Total                                                      $  143,305     $ 141,301     $  284,696    $  276,591
                                                                 ==========     =========     ==========    ==========

(Loss) earnings before income taxes and minority interest:
   Pulse                                                         $  (42,023)    $   9,772     $  (36,060)   $   18,442
   AMI Doduco                                                          (211)         (152)         1,251        (1,375)
                                                                 ----------     ---------     ----------    ----------
      Operating (loss) profit                                      ($42,234)        9,620        (34,809)       17,067
   Other income (expense), net                                           70         1,394           (110)          663
                                                                 ----------     ---------     ----------    ----------
   (Loss) Earnings before income taxes and
    minority interest                                            $  (42,164)    $  11,014     $  (34,919)   $   17,730
                                                                 ==========     =========     ==========    ==========
</TABLE>

(8)   Accounting for Stock Based Compensation

      We adopted SFAS 123, as amended by SFAS 148, at the beginning of the 2003
fiscal year. We implemented SFAS 123 under the prospective method approach per
SFAS 148, whereby compensation expense is recorded for all awards granted
subsequent to adoption.

      If compensation cost for our stock option plan and stock purchase plan had
been determined based on the fair value as required by SFAS 123 for all awards
(including those made prior to 2003), our pro forma net earnings and earnings
per basic and diluted share would have been as follows, (in thousands, except
per share amounts):

<TABLE>
<CAPTION>
                                                                       Three Months Ended             Six Months Ended
                                                                    July 1,      June 25,        July 1,      June 25,
                                                                       2005          2004           2005          2004
                                                                  ---------     ---------     ----------    ----------
<S>                                                               <C>           <C>           <C>           <C>
Net (loss) earnings, as reported                                  $ (42,914)    $   9,274     $  (37,805)   $   15,039
Add: Stock-based compensation expense included
 in reported net (loss) earnings, net of taxes                          536           614          1,037           998
Deduct: Total stock-based compensation expense
determined  under fair value based method for all
awards, net of taxes                                                   (749)         (882)        (1,464)       (1,469)
                                                                  ---------     ---------     ----------    ----------
Net (loss) earnings adjusted                                      $ (43,127)    $   9,006     $  (38,232)   $   14,568
Basic net (loss) earnings per share - as reported                 $   (1.06)    $    0.23     $    (0.94)   $     0.37
Basic net (loss) earnings per share - adjusted                    $   (1.07)    $    0.22     $    (0.95)   $     0.36
Diluted net (loss) earnings per share - as reported               $   (1.06)    $    0.23     $    (0.94)   $     0.37
Diluted net (loss) earnings per share - adjusted                  $   (1.07)    $    0.22     $    (0.95)   $     0.36
</TABLE>


                                       10
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(8)   Accounting for Stock Based Compensation, continued

      At July 1, 2005, we had approximately 516,000 options outstanding,
representing approximately 1% of our outstanding shares of common stock. The
value of restricted stock has always been and continues to be recorded as
compensation expense over the restriction period, and such expense is included
in the results of operations for the periods ended July 1, 2005 and June 25,
2004, respectively.

(9)   Pension

      In the six months ended July 1, 2005 we were not required to, nor did we,
make any contributions to our qualified pension plan. Our net periodic expense
was approximately $0.7 million and $0.7 million in the six months ended July 1,
2005 and June 25, 2004, respectively, and is expected to be approximately $1.4
million for the full fiscal year in 2005.

(10)  Discontinued Operations

      In the three months ended April 1, 2005, our board of directors approved a
plan to divest AMI Doduco's bimetal and metal cladding operations located in
North Carolina. In the second quarter of 2005, we received approximately $6.7
million in cash and realized a gain of approximately $1.4 million from the sale
of approximately $5.1 million of inventory and $0.2 million of machinery and
equipment. During the six months ended July 1, 2005, we accrued $0.8 million for
severance and related payments resulting from the announcement to terminate
manufacturing and support personnel. Additionally, we realized a $0.6 million
curtailment gain as a result of the reduced estimated future service period of
the severed personnel. We have reflected the results of the bimetal and metal
cladding operations as discontinued operations on the consolidated statements of
operations for all periods presented. Summary results of operations for the
bimetal and metal cladding operations were as follows (in thousands):

                                    Three Months Ended         Six Months Ended
                                   July 1,    June 25,      July 1,    June 25,
                                      2005        2004         2005        2004
                                 ---------   ---------   ----------  ----------
Net sales                        $   3,548   $   5,670   $    9,020  $    9,987
Earnings before income taxes           993          55          471         195

      The assets and liabilities of the bimetal and metal cladding operations,
which were presented as assets of discontinued operations held for sale and
liabilities of discontinued operations held for sale, respectively, on the
consolidated balance sheet at July 1, 2005, were as follows ( in thousands):

Trade receivables, net                                    $   1,243
Property, plant and equipment, net                            1,336
Other assets                                                  1,767
                                                          ---------
Assets of discontinued operations held for sale           $   4,346
                                                          =========

Accounts payable                                          $   1,100
Accrued expenses                                              1,476
                                                          ---------
Liabilities of discontinued operations held for sale      $   2,576
                                                          =========

We expect the majority of assets of discontinued operations held for sale,
excluding the property, plant and equipment, and liabilities of the discontinued
operations held for sale to be realized by December 31, 2005.


                                       11
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(11)  Goodwill and Other Intangibles

      The changes in the carrying amounts of goodwill for the six months ended
July 1, 2005 is as follows (in thousands):

        Balance at December 31, 2004                       $ 126,178
        Goodwill acquired during the year                         32
        Impairment adjustment                                (25,118)
        Currency translation adjustment                       (3,405)
                                                           ---------
        Balance at July 1, 2005                            $  97,687

      The majority of our goodwill and other intangibles relate to our Pulse
segment.

Other intangible assets were as follows (in thousands):

                                                             July 1,
                                                                2005
                                                           ---------
            Intangible Assets Subject to Amortization
             (Definite Lived)                              $  10,682
            Accumulated Amortization                          (6,006)
            Net Intangible Assets Subject to
            Amortization                                       4,676
            Intangibles Assets Not Subject to
             Amortization (Indefinite Lived)                   4,658
                                                           ---------
                                                           $   9,334
                                                           =========

      Amortization expense was $1.1 million and $2.1 million for the six months
ended July 1, 2005 and June 25, 2004, respectively. Estimated annual
amortization expense for each of the next five years is as follows (in
thousands):

                       Year Ending

                          2006                     $  909
                          2007                        909
                          2008                        838
                          2009                        260
                          2010                         --

      In the quarter ended July 1, 2005, we recorded a $46.0 million impairment
charge of Pulse Consumer Division assets consisting of $25.6 million of goodwill
and $11.5 million of identifiable intangibles. These impairments resulted from
updated cash flow projections which reflect the shift of production by Pulse to
China-based locations, decreasing average selling prices for television
transformers, and the overall decline in the European television market.


                                       12
<PAGE>

                        Technitrol, Inc. and Subsidiaries

         Notes to Unaudited Consolidated Financial Statements, continued

(12)  Subsequent Event

      On August 9, 2005 we announced an agreement to acquire LK Products Oy
(LK), a leading global producer of antennas and modules for mobile communication
and information devices, from Filtronic PLC. LK's products are used in wireless
applications for handsets, notebook computers, personal digital assistants
(PDAs) and similar wireless devices. LK is based in Kempele, Finland and has
additional production operations in Finland, China and Hungary as well as
offices in South Korea and San Diego, California. The purchase price is
(euro)67.0 million, or approximately $82.8 million (at the close of trading
Friday, August 5, 2005). The acquisition will be financed either entirely with
cash on hand or with a combination of cash and credit under Technitrol's
multi-currency credit facility. In addition, the terms of the purchase include a
revenue-based earnout provision whereby we will pay Filtronic one euro for each
euro of revenue in excess of (euro)85.0 million achieved by LK for the 12 months
ending May 31, 2006. Revenues were approximately (euro)74.0 million ($91.0
million) in the 12 months ended December 31, 2004. In addition, we entered into
a foreign exchange forward contract on August 9, 2005 in order to sell forward
an equivalent amount of U.S. dollars to hedge the (euro)67.0 million purchase
price. Closing of the transaction is expected before September 30, 2005.


                                       13
<PAGE>

Item 2:     Management's Discussion and Analysis of Financial Condition and
Results of Operations

Introduction

      This discussion and analysis of our financial condition and results of
operations as well as other sections of this report, contain certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and involve a number of risks and uncertainties.
Actual results may differ materially from those anticipated in these
forward-looking statements for many reasons, including the risks faced by us
described in "Risk Factors" section of this report on page 25 through 32.

Critical Accounting Policies

      The preparation of financial statements and related disclosures in
conformity with U.S. generally accepted accounting principles requires us to
make judgments, assumptions and estimates that affect the amounts reported in
the Consolidated Financial Statements and accompanying notes. Note 1 to the
Consolidated Financial Statements in our Annual Report on Form 10-K for the
period ended December 31, 2004 describes the significant accounting policies and
methods used in the preparation of the Consolidated Financial Statements.
Estimates are used for, but not limited to, the accounting for inventory
valuation, impairment of goodwill and other intangibles, severance and asset
impairment expense, income taxes, and contingency accruals. Actual results could
differ from these estimates. The following critical accounting policies are
impacted significantly by judgments, assumptions and estimates used in the
preparation of the Consolidated Financial Statements.

      Inventory Valuation. We carry our inventories at lower of cost or market.
We establish inventory provisions to write down excess and obsolete inventory to
market value. We utilize historical trends and customer forecasts to estimate
expected usage of on-hand inventory. In addition, inventory purchases are based
upon future demand forecasts estimated by taking into account actual sales of
our products over recent historical periods and customer forecasts. If there is
a sudden and significant decrease in demand for our products or there is a
higher risk of inventory obsolescence because of rapidly changing technology or
customer requirements, we may be required to write down our inventory and our
gross margin could be negatively affected. Conversely, if we were to sell or use
a significant portion of inventory already written down, our gross margin could
be positively affected.

      Impairment of Goodwill and Other Intangibles. We assess the carrying cost
of goodwill and intangible assets with indefinite lives on an annual basis and
on an interim basis in certain circumstances. This assessment is based on
comparing fair value to carrying cost. Fair value is based on estimating future
cash flows using various growth assumptions and discounting based on a present
value factor. Assigning a useful life and periodically reassessing a remaining
useful life (for purposes of systematic amortization) is also predicated on
various economic assumptions. Our intangible assets are also subject to
impairment as a result of other factors such as changing technology, declines in
demand that lead to excess capacity and other factors. In addition to the
various assumptions, judgments and estimates mentioned above, we may
strategically realign our resources and consider restructuring, disposing of, or
otherwise exiting businesses in response to changes in industry or market
conditions, which could result in an impairment of goodwill or other
intangibles.

      Severance and Asset Impairment Expense. We record severance, tangible
asset and other restructuring charges such as lease terminations, in response to
declines in demand that lead to excess capacity, changing technology and other
factors. These costs are expensed during the period in which we determine that
we will incur those costs, and all of the requirements for accrual are met in
accordance with the applicable accounting guidance. Restructuring costs are
recorded based upon our best estimates at the time, such as estimated residual
values. Our actual expenditures for the restructuring activities may differ from
the initially recorded costs. If this occurs, could be required either to record
additional expenses in future periods if our initial estimates were too low, or
reverse part of the charges that we recorded initially


                                       14
<PAGE>

if our initial estimates were too high. In the case of acquisition-related
restructuring costs, depending on whether the assets impacted came from the
acquired entity and the timing of the restructuring charge, such adjustment
would generally require a change in value of the goodwill appearing on our
balance sheet, which may not affect our earnings.

      Income Taxes. We use the asset and liability method of accounting for
income taxes. Under this method, income tax expense is recognized for the amount
of taxes payable or refundable for the current year and for deferred tax
liabilities and assets for the future tax consequences of events that have been
recognized in an entity's financial statements or tax returns. We must make
assumptions, judgments and estimates to determine our current provision for
income taxes and also our deferred tax assets and liabilities and any valuation
allowance to be recorded against a deferred tax asset. Our judgments,
assumptions and estimates relative to the current provision for income tax take
into account current tax laws, our interpretation of current tax laws and
possible outcomes of current and future audits conducted by foreign and domestic
tax authorities. Changes in tax law or our interpretation of tax laws and the
resolution of current and future tax audits could significantly impact the
amounts provided for income taxes in our consolidated financial statements. Our
assumptions, judgments and estimates relative to the value of a deferred tax
asset take in to account predictions of the amount and category of future
taxable income. Actual operating results and the underlying amount and category
of income in future years could render our current assumptions, judgments and
estimates of recoverable net deferred taxes inaccurate. Any of the assumptions,
judgments and estimates mentioned above could cause our actual income tax
obligations to differ from our estimates.

      Contingency Accruals. During the normal course of business, a variety of
issues may arise, which may result in litigation, environmental compliance and
other contingent obligations. In developing our contingency accruals we consider
both the likelihood of a loss or incurrence of a liability as well as our
ability to reasonably estimate the amount of exposure. We record contingency
accruals when a liability is probable and the amount can be reasonably
estimated. We periodically evaluate available information to assess whether
contingency accruals should be adjusted. Our evaluation includes an assessment
of legal interpretations, judicial proceedings, recent case law and specific
changes or developments regarding known claims. We could be required to record
additional expenses in future periods if our initial estimates were too low, or
reverse part of the charges that we recorded initially if our estimates were too
high.

Overview

      We are a global producer of precision-engineered passive magnetics-based
electronic components and electrical contact products and materials. We believe
we are a leading global producer of these products and materials in the primary
markets we serve based on our estimates of the size of our primary markets in
annual revenues and our share of those markets relative to our competitors.

      We operate our business in two distinct segments:

         -   the electronic components segment, which operates under the name
             Pulse, and

         -   the electrical contact products segment, which operates under the
             name AMI Doduco.

      General. We define net sales as gross sales less returns and allowances.
We sometimes refer to net sales as revenue.

      Prior to 2001, the growth in our consolidated net sales was due in large
part to the growth of electronic component markets served by Pulse. However,
beginning in late 2000, the electronics markets served by Pulse experienced a
severe global contraction. In late 2002, many of these markets began to
stabilize or increase in terms of unit sales. However, because of excess
capacity, relocation by customers from North America and Europe to Asia, and
emergence of strong competitors in Asia, the pricing environment for Pulse's
products has been and remains challenging, preventing total revenue from


                                       15
<PAGE>

growing proportionately with unit growth. Pulse has undertaken a series of
cost-reduction actions to optimize its capacity with market conditions.

      Since late 2000 and continuing through late 2003, the markets in both
North America and Europe for AMI Doduco's products were weak. The markets in
both North America and Europe strengthened significantly during 2004. Demand at
AMI Doduco typically mirrors the prevailing economic conditions in North America
and Europe. This is true for electrical contacts, and for component
subassemblies for automotive applications such as multi-function switches, motor
control sensors and ignition security systems, and for non-automotive uses such
as appliance and industrial controls. AMI Doduco continues its cost reduction
actions including work force adjustments and plant consolidations in line with
demand around the world in order to optimize efficiency.

      Historically, the gross margin at Pulse has been significantly higher than
at AMI Doduco. As a result, the mix of net sales generated by Pulse and AMI
Doduco during a period affects our consolidated gross margin. Our gross margin
is also significantly affected by capacity utilization, particularly at AMI
Doduco and the Pulse Consumer Division. Pulse's markets are characterized by
relatively short product life cycles compared to AMI Doduco. As a result,
significant product turnover occurs each year. Therefore, Pulse's changes in
average selling prices do not necessarily provide a meaningful and quantifiable
measure of Pulse's operations. AMI Doduco has relatively long-term and mature
product lines, with less turnover, and with less frequent variation in the
prices of product sold, relative to Pulse. Many of AMI Doduco's products are
sold under annual (or longer) purchase contracts. Therefore, AMI Doduco's
revenues historically have not been subject to significant price fluctuations.
In addition, sales growth and contraction at AMI Doduco and Pulse's consumer
division are generally attributable to changes in unit volume and changes in
unit pricing, as well as foreign exchange rates, especially the U.S. dollar to
the euro.

      Acquisitions. Historically, acquisitions have been an important part of
our growth strategy. In many cases, our move into new product lines and
extensions of our existing product lines or markets has been facilitated by
acquisition. Our acquisitions continually change the mix of our net sales. Pulse
made numerous acquisitions in recent years which have increased our penetration
into our primary markets and expanded our presence in new markets. Excelsus was
acquired in August 2001 and was a leading producer of customer-premises digital
subscriber line filters and other broadband accessories, and it is now a core
part of Pulse's telecommunications product division. Pulse acquired Eldor's
consumer electronics business in January 2003 and this became the Pulse Consumer
Division headquartered in Italy with production operations in Turkey and in the
Peoples Republic of China ("PRC"). The Consumer Division is a leading supplier
of flyback transformers to the European television industry. We acquired a
controlling interest in Full Rise Electronic Co., Ltd. ("FRE") in 2004. FRE is
based in the Republic of China (Taiwan) and manufactures connector products,
including single and multiple-port jacks, and supplies such products to Pulse
under a cooperation agreement. AMI Doduco has also made acquisitions over the
years. Generally, AMI Doduco's acquisitions have been driven by our strategy of
expanding our product and geographical market presence for electrical contact
products. Due to our integration of acquisitions and the interchangeable sources
of net sales between existing and acquired operations, historically we have not
separately tracked the net sales of an acquisition after the date of the
transaction.

      Technology. Our business is continually affected by changes in technology,
design, and preferences of consumers and other end users of our products, as
well as changes in regulatory requirements. We address these changes by
continuing to invest in new product development and by maintaining a diverse
product portfolio which contains both mature and emerging technologies in order
to meet customer demands.

      Management Focus. Our executives focus on a number of important factors in
evaluating our financial condition and operational performance. One of these
factors is economic profit, which we define as operating profit after tax, less
our cost of capital. Revenue growth, gross profit as a percentage of revenue,
and operating profit as a percent of revenue are also among these factors.
Operating leverage or


                                       16
<PAGE>

incremental operating profit as a percentage of incremental sales is a factor
that is discussed frequently with analysts and investors, as this is believed to
reflect the benefit of absorbing fixed overhead and operating expenses. In
evaluating working capital management, liquidity and cash flow, our executives
also use performance measures such as days sales outstanding, days payable
outstanding and inventory turnover. The continued success of our business is
largely dependent on meeting and exceeding our customers' expectations.
Therefore, non-financial performance measures relating to on-time delivery and
quality assist our management in monitoring customer satisfaction on an on-going
basis.

      Cost Reduction Programs. Our manufacturing business model for Pulse's
non-consumer markets has a very high variable cost component due to the
labor-intensity of many processes, which allows us to quickly change our
capacity based on market demand. The Pulse Consumer Division, however, is
capital intensive and therefore more sensitive to volume changes. AMI Doduco has
a higher fixed cost component of manufacturing activity than Pulse, as it is
more capital intensive. Therefore, AMI Doduco is unable to expand or contract
its capacity as quickly as Pulse in response to market demand, although
significant actions have been taken to align AMI Doduco's capacity with current
market demand.

      As a result of our continuing focus on both economic and operating profit,
we will continue to aggressively size both Pulse and AMI Doduco so that costs
are optimally matched to current and anticipated future revenue and unit demand.
Therefore, we may restructure our business in the future and the amounts of
additional charges will depend on specific actions taken. The actions taken over
the past several years such as plant closures, plant relocations, asset
impairments and reduction in personnel worldwide have resulted in the
elimination of a variety of costs. The majority of these costs represent the
annual salaries and benefits of terminated employees, both those directly
related to manufacturing and those providing selling, general and administrative
services, as well as lower overhead costs resulting from factory relocations to
lower-cost locations. The eliminated costs also include depreciation savings
from disposed equipment. We have implemented a succession of cost reduction
initiatives and programs, summarized as follows:

      During 2004, we accrued for the termination of personnel at AMI Doduco's
facility in Germany; for Pulse's shutdown of a facility in Carlsbad, California;
to reduce capacity at a Pulse facility in the PRC; to shutdown AMI Doduco's
facility in France; and for other severance in various locations.

      During 2005, we accrued for the termination of personnel at Pulse's
facilities in Italy and Turkey and AMI Doduco's facility in Italy; the
termination of a lease in the PRC; and for other severance in various locations.
An additional provision was recorded related to asset write-downs of Pulse's
consumer business in Italy and Turkey.

      International Operations. As of December 31, 2004, we had manufacturing
operations in 10 countries and had no significant net sales in currencies other
than the U.S. dollar and the euro. A large percentage of our sales in recent
years has been outside of the United States. In the year ended December 31,
2004, 78% of our net sales was outside of the U.S. Fluctuating exchange rates
often impact our financial results and our period-over-period comparisons. This
is particularly true of movements in the exchange rate between the U.S. dollar
and the euro. AMI Doduco's European and Pulse's Consumer Division sales are
denominated primarily in euros, and euro-denominated sales and earnings may
result in higher or lower dollar sales and net earnings upon translation for our
U.S. consolidated financial statements. We may also experience a positive or
negative translation adjustment to equity because our investment in Pulse's
Consumer Division and AMI Doduco's European operations may be worth more or less
in U.S. dollars after translation for our U. S. consolidated financial
statements. The Pulse non-consumer operations may incur foreign currency gains
or losses as euro-denominated transactions are remeasured to U.S. dollars for
financial reporting purposes. If a higher percentage of our sales is denominated
in non-U.S. currencies, increased exposure to currency fluctuations may result.
In order to reduce our exposure resulting from currency fluctuations, we may
purchase currency exchange forward contracts and/or currency options. These
contracts guarantee a predetermined range of exchange rates at the time the
contract is purchased. This allows us to shift the majority of the risk of
currency fluctuations


                                       17
<PAGE>

from the date of the contract to a third party for a fee. In determining the use
of forward exchange contracts and currency options, we consider the amount of
sales, purchases and net assets or liabilities denominated in local currencies,
the type of currency, and the costs associated with the contracts.

      Income Taxes. Our effective income tax rate is affected by the proportion
of our income earned in high-tax jurisdictions such as those in Europe and the
income earned in low-tax jurisdictions, particularly Izmir, Turkey and the PRC.
This mix of income can vary significantly from one period to another. We have
benefited in recent years from favorable tax incentives, inside and outside of
the U.S. However, there is no guarantee as to how long these benefits will
continue to exist. Except in limited circumstances, we have not provided for
U.S. federal income and foreign withholding taxes on our non-U.S. subsidiaries'
undistributed earnings as per Accounting Principles Board Opinion No. 23,
Accounting for Income Taxes - Special Areas ("APB 23"). Such earnings include
pre-acquisition earnings of foreign entities acquired through stock purchases,
and are intended to be reinvested outside of the U.S. indefinitely. We have not
provided for U.S. federal income and foreign withholding taxes on approximately
$333.0 million of our non-U.S. subsidiaries' undistributed earnings (as
calculated for income tax purposes) as of December 31, 2004, as per APB 23.
Unrecognized deferred taxes on these undistributed earnings are estimated to be
approximately $96.0 million. Where excess cash has accumulated in our non-U.S.
subsidiaries and it is advantageous for tax reasons, subsidiary earnings may be
repatriated.

Results of Operations

      Three months ended July 1, 2005 compared to the three months ended June
25, 2004

      Net Sales. Net sales for the three months ended July 1, 2005 increased
$2.0 million, or 1.4%, to $143.3 million from $141.3 million in the three months
ended June 25, 2004. Our sales increase from the comparable period last year was
primarily attributable to improvement in the market conditions for AMI Doduco.
AMI Doduco's increase in net sales was due to higher prices for precious metals
and favorable translation effect of a stronger euro. Pulse's sales decreased due
to lower demand in primarily the telecommunications and consumer division
markets, relative to the comparable period in 2004, which represented a period
of overly optimistic markets, particularly for telecommunications and consumer
division products.

      Pulse's net sales decreased $3.1 million, or 3.8%, to $78.4 million for
the three months ended July 1, 2005 from $81.5 million in the three months ended
June 25, 2004. This decrease was a result of decreases in demand experienced
across Pulse's networking, telecommunications, military/aerospace, power
conversion and consumer division products. Offsetting this decrease in demand is
the inclusion of FRE sales during the three months ended July 1, 2005.
Additionally, the sales decrease at the consumer division was favorably impacted
by a stronger euro in the 2005 period.

      AMI Doduco's net sales increased $5.1 million, or 8.5 %, to $65.0 million
for the three months ended July 1, 2005 from $59.8 million in the three months
ended June 25, 2004. Sales in the 2005 period reflect improving demand in North
America, particularly in the commercial and industrial markets, whereas European
markets were marginally stronger. The sales comparison benefited from an
increase in the average U.S. dollar-to-euro exchange rate and higher prices for
precious metals which were passed on to customers. The higher average U.S.
dollar-to-euro exchange rate during 2005 versus the comparable 2004 quarter
increased sales by approximately $1.9 million in the three months ended July 1,
2005.

      Cost of Sales. As a result of higher sales, our cost of sales increased
$8.7 million, or 8.5%, to $110.8 million for the three months ended July 1, 2005
from $102.1 million for the three months ended June 25, 2004. Our consolidated
gross margin for the three months ended July 1, 2005 was 22.7% compared to 27.8%
for the three months ended June 25, 2004. Our consolidated gross margin in 2005
was negatively affected by a decline in labor productivity and minimum wage
increases at Pulse in 2005 compared to 2004. The local government in the PRC
increased wages in Southern coastal provinces of the PRC by 17% in May 2005. We
expect to offset this unfavorable impact on our costs by various actions


                                       18
<PAGE>

including increasing customer prices and improving throughput and efficiency in
our manufacturing operations.

      Selling, General and Administrative Expenses. Total selling, general and
administrative expenses for the three months ended July 1, 2005 decreased $1.6
million, or 5.7%, to $26.5 million, or 18.5 % of net sales, from $28.1 million,
or 19.9% net of sales for the three months ended June 25, 2004. Decreased
spending was a result of lower variable costs such as incentives and stock
compensation expense and the favorable impact of restructuring actions that we
took over the last year to reduce costs and tighten spending controls. Incentive
expense, in particular, was $2.0 million lower in 2005 versus the comparable
period in 2004. Partially offsetting the lower spending was the fact that
European expenses are denominated in euros, which translated to a higher level
of U.S. dollars at the higher average dollar-to-euro exchange rate in 2005
compared to 2004.

      Research, development and engineering expenses are included in selling,
general and administrative expenses. We refer to research, development and
engineering expenses as RD&E. For the three months ended July 1, 2005 and June
25, 2004 respectively, RD&E by segment was as follows (dollars in thousands):

                                                  2005        2004
                                                -------      -------
      Pulse                                     $ 4,728      $ 4,682
      Percentage of segment sales                   6.0%         5.8%

      AMI Doduco                                $ 1,023      $   976
      Percentage of segment sales                   1.6%         1.6%

      We believe that future sales in the electronic components markets will be
driven by next-generation products. Design and development activities with our
OEM customers continue at an aggressive pace.

      Severance and Asset Impairment Expense. Severance and asset impairment
expense for the three months ended July 1, 2005 was $48.3 million compared to
$1.5 million in the three months ended June 25, 2004. The increase in the 2005
period was primarily due to the $46.0 million asset impairment charge in Pulse's
Consumer Division, consisting of $25.6 million of goodwill, $11.5 of identified
intangibles and $8.9 million of property, plant and equipment. These impairments
resulted from updated cash flow projections which reflect the shift of
production by Pulse to China-based locations, decreasing average selling prices
for television transformers, and the overall decline in the European television
market.

      Interest. Net interest income was $0.5 million for the three months ended
July 1, 2005 compared to net interest expense of $0.2 million for the three
months ended June 25, 2004. The higher average balance of invested cash in 2005
over the comparable period in 2004, combined with a higher interest income
yield, resulting in higher net interest income. Recurring components of interest
expense (silver leasing fees, interest on bank debt and bank commitment fees)
approximated those of 2004, except for the inclusion of interest expense on FRE
debt during the three months ended July 1, 2005.

      Other Income. Other income (expense) was $0.5 million of expense for the
three months ended July 1, 2005 versus $1.3 million of income for the three
months ended June 25, 2004. The decrease from 2004 is primarily attributable to
$1.1 million gain recorded in the 2004 period related to the sale of equity
rights arising from the 2001 acquisition of the Engelhard-CLAL electrical
contacts business.

      Income Taxes. The effective income tax rate for the three months ended
July 1, 2005 was (2.1%) compared to 16.1% for the three months ended June 25,
2004. The lower tax rate in 2005 was primarily a result of the non-deductibility
of the Consumer Division impairment charge of approximately $46.0 million.
The effective rate without the impairment charge was 29.2%.


                                       19
<PAGE>

      Six months ended July 1, 2005 compared to the six months ended June 25,
2004

      Net Sales. Net sales for the six months ended July 1, 2005 increased $8.1
million, or 2.9%, to $284.7 million from $276.6 million in the six months ended
June 25, 2004. Our sales increase from the comparable period last year was
attributable to improvement in the markets for AMI Doduco. AMI Doduco's increase
in net sales was due to higher prices for precious metals and favorable
translation effect of a stronger euro. Pulse's sales decreased due to lower
demand in primarily the telecommunications and consumer division markets,
relative to the comparable period in 2004, which represented a period of overly
optimistic markets, particularly for telecommunications and consumer division
products

      Pulse's net sales decreased $ 5.1 million, or 3.2%, to $153.9 million for
the six months ended July 1, 2005 from $159.0 million in the six months ended
June 25, 2004. This decrease was attributable to weak demand in Pulse's
telecommunications and consumer division markets on a worldwide basis, offset
partially by stronger demand in networking and power conversion products.
Partially offsetting this decrease in demand is the inclusion of FRE sales
during the six months ended July 1, 2005.

      AMI Doduco's net sales increased $13.2 million, or 11.2%, to $130.8
million for the six months ended July 1, 2005 from $117.6 million in the six
months ended June 25, 2004. Sales in the 2005 period reflect improving demand in
North America, particularly in the commercial and industrial markets, whereas
European markets were flat to down, particularly in the automotive sector. The
sales benefited from an increase in the average U.S. dollar-to-euro exchange
rate and higher prices for precious metals which were passed on to customers.
The higher average U.S. dollar-to-euro exchange rate during 2005 versus the
comparable 2004 six months increased sales by approximately $4.1 million in the
six months ended July 1, 2005.

      Cost of Sales. As a result of higher net sales, our cost of sales
increased $18.6 million, or 9.3 %, to $218.2 million for the six months ended
July 1, 2005 from $199.6 million for the six months ended June 25, 2004. Our
consolidated gross margin for the six months ended July 1, 2005 was 23.4%
compared to 27.8% for the six months ended June 25, 2004. Our consolidated gross
margin was negatively affected by a decline in labor productivity and minimum
wage increases at Pulse in 2005 compared to 2004. The local government in the
PRC increased wages in Southern coastal provinces of the PRC by 17% in May 2005.
We expect to offset this unfavorable impact on our costs by various actions
including increasing customer prices and improving throughput and efficiency in
our manufacturing operations.

      Selling, General and Administrative Expenses. Total selling, general and
administrative expenses for the six months ended July 1, 2005 decreased $3.4
million, or 6.1 %, to $52.1 million, or 18.3% of net sales, from $55.5 million,
or 20.1% net of sales for the six months ended June 25, 2004. Decreased spending
was primarily a result of decreased incentive expense, which was $3.4 million
lower in 2005 versus the comparable period in 2004.

      Research, development and engineering expenses are included in selling,
general and administrative expenses. We refer to research, development and
engineering expenses as RD&E. For the six months ended July 1, 2005 and June 25,
2004 respectively, RD&E by segment was as follows (dollars in thousands):

                                                  2005           2004
                                                --------      --------
      Pulse                                     $  9,508      $  9,289
      Percentage of segment sales                    6.2%          5.8%

      AMI Doduco                                $  2,177      $  2,045
      Percentage of segment sales                    1.7%          1.6%


                                       20
<PAGE>

      We believe that future sales in the electronic components markets will be
driven by next-generation products. Design and development activities with our
OEM customers continue at an aggressive pace.

      Severance and Asset Impairment Expense. Severance and asset impairment
expense for the six months ended July 1, 2005 was $49.2 million compared to $4.3
million in the six months ended June 25, 2004. The increase in the 2005 period
was primarily due to the $46.0 million asset impairment in Pulse's Consumer
Division, consisting of $25.6 million of goodwill, $11.5 of identified
intangibles and $8.9 million of property, plant and equipment. These impairments
resulted from updated cash flow projections which reflect the shift of
production by Pulse to China-based locations, decreasing average selling prices
for television transformers, and the overall decline in the European television
market.

      Interest. Net interest income was $0.8 million for the six months ended
July 1, 2005 compared to net interest expense of $0.3 million for the six months
ended June 25, 2004. The higher average balance of invested cash in 2005 over
the comparable period in 2004, combined with a higher interest income yield,
resulting in higher net interest income. Recurring components of interest
expense (silver leasing fees, interest on bank debt and bank commitment fees)
approximated those of 2004, except for the inclusion of interest expense on FRE
debt during the six months ended July 1, 2005.

      Other Income. Other income (expense) was $0.9 million of expense for the
six months ended July 1, 2005 versus $0.6 million of income for the six months
ended June 25, 2004. The decrease from 2004 is primarily attributable to $1.1
million gain related to the sale of equity rights arising for the 2001
acquisition of the Engelhard-CLAL electrical contacts business.

      Income Taxes. The effective income tax rate for the six months ended July
1, 2005 was (7.1%) compared to 15.9% for the six months ended June 25, 2004. The
lower tax rate in 2005 was primarily a result of the non-deductibility of the
Consumer Division impairment charge of approximately $46.0 million. The
effective rate without the impairment charge was 24.3%

Liquidity and Capital Resources

      Working capital as of July 1, 2005 was $249.1 million compared to $238.9
million as of December 31, 2004. This increase was primarily due to the increase
in cash and cash equivalents, offset by decreases in trade receivables and
inventories. Cash and cash equivalents, which is included in working capital,
increased from $156.0 million as of December 31, 2004 to $182.1 million as of
July 1, 2005.

      Net cash provided by operating activities was $25.9 million for the six
months ended July 1, 2005 and $18.2 million in the comparable period of 2004, an
increase of $7.7 million. This increase is primarily attributable to a net
working capital increase of $10.2 million during the six months ended July 1,
2005, compared to a net working capital increase of $18.6 million in the six
months ended June 25, 2004.

      We present our statement of cash flows using the indirect method as
permitted under Financial Accounting Standards Board Statement No. 95, Statement
of Cash Flows. Our management has found that investors and analysts typically
refer to changes in accounts receivable, inventory, and other components of
working capital when analyzing operating cash flows. Also, changes in working
capital are more directly related to the way we manage our business for cash
flow than are items such as cash receipts from the sale of goods, as would
appear using the direct method.

      Capital expenditures were $8.2 million during the six months ended July 1,
2005 and $3.9 million in the comparable period of 2004. During the six months
ended July 1, 2005, we included $5.6 million of capital spending of FRE in
conjunction with our consolidation of FRE's financial statements. We make
capital expenditures to expand production capacity, improve our operating
efficiency, and enhance workplace safety. We plan to continue making such
expenditures in the future as and when necessary.


                                       21
<PAGE>

      On February 2, 2005 we announced a quarterly cash dividend of $0.0875 per
common share, payable on April 22, 2005 to shareholders of record on April 8,
2005. This quarterly dividend resulted in a cash payment to shareholders of
approximately $3.5 million in the second quarter of 2005. We did not declare or
pay cash dividends on our common stock in fiscal 2004. On May 18, 2005 we
announced a quarterly cash dividend of $0.0875 per common share, payable on July
22, 2005 to shareholders of record on July 8, 2005. This quarterly dividend will
result in a cash payment to shareholders of approximately $3.5 million in the
third quarter of 2005.

      We used $1.2 million for acquisitions during the six months ended July 1,
2005. This expenditure related to the acquisition by Pulse of additional shares
of FRE, bringing our total ownership to 54%. We used $4.0 million, net of cash
acquired, for acquisitions during the six months ended June 25, 2004. This
expenditure was related to the acquisition by Pulse of a plastics fabrication
operation in the PRC. We may acquire other businesses or product lines to expand
our breadth and scope of operations.

      We expect to close on our transaction to acquire the common stock
outstanding of LK Products OY and subsidiaries (see Note 11 in Notes to
Unaudited Financial Statements) on August 31, 2005, which would result in a 67.0
million euro use of cash. The sources of such funding will be our available cash
reserves, borrowing under our existing credit agreement and/or borrowing under
any new credit agreement we may initiate in the future.

      We entered into a credit agreement on June 17, 2004 providing for $125.0
million of credit capacity. The facility consists of an aggregate U.S.
dollar-equivalent revolving line of credit in the principal amount of up to
$125.0 million, which provides for borrowings in multiple currencies including
but not limited to U.S. dollars and euros, including individual sub-limits of:

      -   a U.S. dollar-based swing-line loan not to exceed $10.0 million; and

      -   a multicurrency facility providing for the issuance of letters of
          credit in an aggregate amount not to exceed the U.S. dollar equivalent
          of $15.0 million.

      The credit agreement permits us to request one or more increases in the
total commitment not to exceed $75.0 million, provided the minimum increase is
$25.0 million, subject to bank approval.

      The total amount outstanding under the credit facility may not exceed
$125.0 million, provided we do not request an increase in total commitment as
noted above. In any event, outstanding borrowings are limited to a maximum of
three times our earnings before interest, taxes, depreciation and amortization
(EBITDA), as defined by the credit agreement, on a rolling twelve-month basis as
of the most recent quarter-end.

      The credit facility contains covenants specifying a maximum debt-to-EBITDA
ratio, minimum interest expense coverage, capital expenditure limitations, and
other customary and normal provisions. We are in compliance with all such
covenants. As of July 1, 2005, we have no outstanding borrowings under our
existing three-year revolving credit agreement.

      We pay a commitment fee on the unborrowed portion of the commitment, which
ranges from 0.175% to 0.300% of the total commitment, depending on our
debt-to-EBITDA ratio, as defined above. The interest rate for each currency's
borrowing will be a combination of the base rate for that currency plus a credit
margin spread. The base rate is different for each currency. The credit margin
spread is the same for each currency and is 0.750% to 1.500%, depending on our
debt-to-EBITDA ratio, as defined above. Each of our domestic subsidiaries with
net worth equal to or greater than $5 million guarantees all obligations
incurred under the credit facility.

      We announced on August 8, 2005 that we entered into a commitment letter
with Bank of America, N.A. and Banc of America Securities, LLC to arrange and
syndicate a $200 million five-year revolving credit facility. Under the
facility, we may request an increase in the principal amount to $300 million.
The credit facility will be made available for working capital, capital
expenditures, acquisitions, and other purposes, and to refinance our existing
$125 million credit facility which expires in 2007. The credit agreement will
contain affirmative and negative covenants, customary in facilities of this type
and is expected to be executed on or before September 30, 2005, subject to
customary closing conditions.

                                       22
<PAGE>

      We also have an obligation outstanding due in August 2009 under an
unsecured term loan agreement with Sparkasse Pforzheim, for the borrowing of
approximately 5.1 million euros.

      At July 1, 2005, our balance sheet includes $4.7 million of outstanding
debt of Full Rise Electronic Co., Ltd. in connection with our consolidation of
FRE's financial statements. FRE has a total credit limit of approximately $6.9
million in U.S. dollar equivalents as of July 1, 2005. Neither Technitrol, nor
any of its subsidiaries, has guaranteed or otherwise participated in the credit
facilities of FRE.

      We had three standby letters of credit outstanding at July 1, 2005 in the
aggregate amount of $1.1 million securing transactions entered into in the
ordinary course of business.

      We had commercial commitments outstanding at July 1, 2005 of approximately
$80.1 million due under precious metal consignment-type leases. This represents
a decrease of $3.3 million from the $83.4 million outstanding as of December 31,
2004 and is primarily attributable to lower average silver prices during 2005.

      We believe that the combination of cash on hand, cash generated by
operations and, if necessary, borrowings under our credit agreement will be
sufficient to satisfy our operating cash requirements in the foreseeable future.
In addition, we may use internally generated funds or obtain borrowings or
additional equity offerings for acquisitions of suitable businesses or assets.

      All retained earnings are free from legal or contractual restrictions as
of July 1, 2005, with the exception of approximately $14.0 million of retained
earnings primarily in the PRC, that are restricted in accordance with Section 58
of the PRC Foreign Investment Enterprises Law. Included in the $14.0 million is
$1.8 million of retained earnings of FRE of which we own 54%. The amount
restricted in accordance with the PRC Foreign Investment Enterprise Law is
applicable to all foreign investment enterprises doing business in the PRC. The
restriction applies to 10% of our net earnings in the PRC, limited to 50% of the
total capital invested in the PRC. We have not experienced any significant
liquidity restrictions in any country in which we operate and none are foreseen.
However, foreign exchange ceilings imposed by local governments and the
sometimes-lengthy approval processes which foreign governments require for
international cash transfers may delay our internal cash movements from time to
time. The retained earnings in other countries represent a material portion of
our assets. We expect to reinvest these earnings outside of the United States
because we anticipate that a significant portion of our opportunities for growth
in the coming years will be abroad. If these earnings were brought back to the
United States, significant tax liabilities could be incurred in the United
States as several countries in which we operate have tax rates significantly
lower than the U.S. statutory rate. Additionally, we have not accrued U.S.
income and foreign withholding taxes on foreign earnings that have been
indefinitely invested abroad.

      On October 22, 2004, the American Jobs Creation Act ("AJCA") was signed
into law. The AJCA introduced a limited-time 85% dividends-received deduction on
the repatriation of certain foreign earnings. Effectively, this deduction would
result in a federal tax rate of approximately 5.25% on the repatriated earnings.
To qualify for the deduction, the earnings must be reinvested in the United
States pursuant to a domestic reinvestment plan established by a company's chief
executive officer and approved by the company's board of directors.
Additionally, certain other criteria, as outlined in the AJCA, must also be met.
We may elect to apply this provision to qualifying earnings repatriations in
fiscal 2005. We have begun an evaluation of the possible effects of the
repatriation provision, however, we do not expect to be able to complete this
evaluation until after our planned sources and uses of cash for the remainder of
2005 are finalized in terms of location (U.S. or foreign), amounts, and timing.
The amount that we are considering for repatriation under this provision ranges
from zero to approximately $125.0 million. While we estimate that the related
potential range of additional income tax is between zero and $10.1 million. The
amount of additional income tax expense would be reduced by the part of the
eligible dividend that is attributable to foreign earnings on which a deferred
tax liability had been previously accrued.


                                       23
<PAGE>

New Accounting Pronouncements

      In December 2004, the FASB issued SFAS No. 123 (revised 2004), Share-Based
Payment, ("SFAS No. 123(R)"), which amends SFAS No. 123, Accounting for
Stock-Based Compensation, and supersedes APB Opinion No. 25, Accounting for
Stock Issued to Employees. SFAS No. 123(R) requires compensation expense to be
recognized for all share-based payments made to employees based on the fair
value of the award at the date of grant, eliminating the intrinsic value
alternative allowed by SFAS No. 123. Generally, the approach to determining fair
value under the original pronouncement has not changed, however, there are
revisions to the accounting guidelines established, such as accounting for
forfeitures. SFAS No. 123(R) is effective for the beginning of our fiscal 2006.
Adoption of this standard is not expected to have a material impact on our
revenue, operating results, financial position or liquidity.

      In December 2004, the FASB issued FASB Staff Position No. FAS 109-2 ("FAS
109-2"), Accounting and Disclosure Guidance for the Foreign Earnings
Repatriation Provision within the American Jobs Creations Act of 2004. As noted
above, the AJCA introduces a limited time 85% dividends received deduction on
the repatriation of certain foreign earnings to a U.S. taxpayer (repatriation
provision), provided certain criteria are met. FAS 109-2 provides accounting and
disclosure guidance for the repatriation provision. Although FAS 109-2 is
effective immediately, we do not expect to be able to complete our evaluation of
the repatriation provision until after Congress or the Treasury Department
provides additional clarifying language on key elements of the provision.

      In November 2004, the FASB issued  Statement No. 151,  Inventory  Costs or
Amendment of ARB No.43,  Chapter 4 ("SFAS  151").  SFAS 151 provides for certain
fixed  production  overhead  cost  to be  reflected  as a  period  cost  and not
capitalized as inventory.  SFAS 151 is effective for the beginning of our fiscal
2006. Adoption of this standard is not expected to have a material impact on our
revenue, operating results, financial position or liquidity.


                                       24
<PAGE>

Factors That May Affect Our Future Results (Cautionary Statements for Purposes
of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act
of 1995)

      Our disclosures and analysis in this report contain forward-looking
statements. Forward-looking statements reflect our current expectations of
future events or future financial performance. You can identify these statements
by the fact that they do not relate strictly to historical or current facts.
They often use words such as "anticipate", "estimate", "expect", "project",
"intend", "plan", "believe", and similar terms. These forward-looking statements
are based on our current plans and expectations.

      Any or all of our forward-looking statements in this report may prove to
be incorrect. They may be affected by inaccurate assumptions we might make or by
risks and uncertainties which are either unknown or not fully known or
understood. Accordingly, actual outcomes and results may differ materially from
what is expressed or forecasted in this report.

      We sometimes provide forecasts of future financial performance. The risks
and uncertainties described under "Risk Factors" as well as other risks
identified from time to time in other Securities and Exchange Commission
reports, registration statements and public announcements, among others, should
be considered in evaluating our prospects for the future. We undertake no
obligation to release updates or revisions to any forward-looking statement,
whether as a result of new information, future events or otherwise.

Risk Factors

Cyclical changes in the markets we serve could result in a significant decrease
in demand for our products and reduce our profitability.

      Our  components  are  used in  various  products  for the  electronic  and
electrical equipment markets.  These markets are highly cyclical. The demand for
our components reflects the demand for products in the electronic and electrical
equipment markets generally.  A contraction in demand would result in a decrease
in sales of our products, as our customers:

   -  may cancel many existing orders;

   -  may introduce fewer new products; and

   -  may decrease their inventory levels.

      A decrease in demand for our products would have a significant adverse
effect on our operating results and profitability. Accordingly, we may
experience volatility in both our revenues and profits.

Reduced prices for our products may adversely affect our profit margins if we
are unable to reduce our costs of production.

      The average selling prices for our products tend to decrease over their
life cycle. In addition, foreign currency movements and the need to retain
market share increase the pressure on our customers to seek lower prices from
their suppliers. As a result, our customers are likely to continue to demand
lower prices from us. To maintain our margins and remain profitable, we must
continue to meet our customers' design needs while reducing costs through
efficient raw material procurement and process and product improvements. Our
profit margins will suffer if we are unable to reduce our costs of production as
sales prices decline.


                                       25
<PAGE>

An inability to adequately respond to changes in technology or customer needs
may decrease our sales.

      Pulse operates in an industry  characterized by rapid change caused by the
frequent emergence of new technologies. Generally, we expect life cycles for our
products in the  electronic  components  industry to be relatively  short.  This
requires us to anticipate and respond  rapidly to changes in industry  standards
and customer  needs and to develop and introduce new and enhanced  products on a
timely and cost effective basis.  Our engineering and development  teams place a
priority on working closely with our customers to design innovative products and
improve  our  manufacturing  processes.  Our  inability  to react to  changes in
technology  or customer  needs quickly and  efficiently  may decrease our sales,
thus reducing profitability.

If our inventories become obsolete, our future performance and operating results
will be adversely affected.

      The life cycles of our products depend heavily upon the life cycles of the
end products into which our products are designed. Many of Pulse's products have
very short life cycles which are measured in quarters.  Products with short life
cycles  require  us to closely  manage  our  production  and  inventory  levels.
Inventory may become  obsolete  because of adverse changes in end market demand.
During market  slowdowns,  this may result in significant  charges for inventory
write-offs.  Our future operating results may be adversely  affected by material
levels of obsolete or excess inventories.

An inability to capitalize on our recent or future acquisitions may adversely
affect our business.

      We have completed  several  acquisitions  in recent years.  We continually
seek  acquisitions  to grow  our  business.  We may fail to  derive  significant
benefits from our acquisitions.  In addition,  if we fail to achieve  sufficient
financial performance from an acquisition,  goodwill and other intangibles could
become impaired, resulting in our recognition of a loss. In 2004, we recorded an
aggregate  intangible  impairment  charge of $18.5 million  related to Pulse. In
2005 we recorded a $46.0 million  impairment  charge related to Pulse's Consumer
Division. The success of any of our acquisitions depends on our ability to:

   -  successfully integrate or consolidate acquired operations into our
      existing businesses;

   -  develop or modify the financial reporting and information systems of the
      acquired entity to ensure overall financial integrity and adequacy of
      control procedures; and

   -  identify and take advantage of cost reduction opportunities; and

   -  further penetrate the markets for the product capabilities acquired.

      Integration of acquisitions may take longer than we expect and may never
be achieved to the extent originally anticipated. This could result in slower
than anticipated business growth or higher than anticipated costs. In addition,
acquisitions may:

   -  cause a disruption in our ongoing business;

   -  distract our managers;

   -  unduly burden our other resources; and

   -  result in an inability to maintain our historical standards, procedures
      and controls, which may result in non-compliance with external laws and
      regulations.

Integration of acquisitions into the acquiring segment may limit the ability of
investors to track the performance of individual acquisitions and to analyze
trends in our operating results.

      Our historical  practice has been to quickly  integrate  acquisitions into
the  existing  business  of  the  acquiring  segment  and  to  report  financial
performance  on the  segment  level.  As a result  of this  practice,  we do not
separately track the stand-alone  performance of acquisitions  after the date of
the   transaction.   Consequently,   investors  cannot  quantify  the  financial
performance and success of any individual


                                       26
<PAGE>

acquisition or the financial performance and success of a particular segment
excluding the impact of acquisitions. In addition, our practice of quickly
integrating acquisitions into the financial performance of each segment may
limit the ability of investors to analyze any trends in our operating results
over time.

An inability to identify additional acquisition opportunities may slow our
future growth.

      We intend to continue to identify and consummate additional acquisitions
to further diversify our business and to penetrate important markets. We may not
be able to identify suitable acquisition candidates at reasonable prices. Even
if we identify promising acquisition candidates, the timing, price, structure
and success of future acquisitions are uncertain. An inability to consummate
attractive acquisitions may reduce our growth rate and our ability to penetrate
new markets.

If our customers terminate their existing agreements, or do not enter into new
agreements or submit additional purchase orders for our products, our business
will suffer.

      Most of our  sales  are made on a  purchase  order  basis as needed by our
customers.  In  addition,  to the  extent we have  agreements  in place with our
customers,  most of these  agreements are either short term in nature or provide
our customers  with the ability to terminate the  arrangement  with little or no
prior  notice.  Our  contracts  typically  do not  provide us with any  material
recourse in the event of non-renewal or early termination. We will lose business
and our revenues will decrease if a significant number of customers:

   -  do not submit additional purchase orders;

   -  do not enter into new agreements with us; or

   -  elect to terminate their relationship with us.

If we do not effectively manage our business in the face of fluctuations in the
size of our organization, our business may be disrupted.

      We have grown rapidly over the last ten years,  both  organically and as a
result of acquisitions. However, we significantly reduce or expand our workforce
and  facilities  in  response  to  changes  in demand  for our  products  due to
prevailing global market  conditions.  These rapid fluctuations place strains on
our resources  and systems.  If we do not  effectively  manage our resources and
systems, our businesses may be adversely affected.

      Uncertainty  in demand for our products  may result in increased  costs of
production,  an inability to service our customers,  or higher  inventory levels
which may adversely affect our results of operations and financial condition.

      We have very little visibility into our customers' purchasing patterns and
are  highly  dependent  on  our  customers'   forecasts.   These  forecasts  are
non-binding and often highly  unreliable.  Given the fluctuation in growth rates
and cyclical demand for our products, as well as our reliance on often-imprecise
customer  forecasts,  it  is  difficult  to  accurately  manage  our  production
schedule, equipment and personnel needs and our raw material and working capital
requirements. Our failure to effectively manage these issues may result in:

   -  production delays;

   -  increased costs of production;

   -  excessive inventory levels and reduced financial liquidity;

   -  an inability to make timely deliveries; and

   -  a decrease in profits.


                                       27
<PAGE>

A decrease in availability or increase in cost of our key raw materials could
adversely affect our profit margins.

      We use several types of raw materials in the manufacturing of our
products, including:

   -  precious metals such as silver;

   -  other base metals such as copper and brass; and

   -  ferrite cores.

      Some of these  materials  are produced by a limited  number of  suppliers.
From time to time,  we may be unable to obtain these raw materials in sufficient
quantities or in a timely  manner to meet the demand for our products.  The lack
of  availability  or a delay in obtaining any of the raw  materials  used in our
products could adversely affect our manufacturing  costs and profit margins.  In
addition, if the price of our raw materials increases significantly over a short
period of time,  customers may be unwilling to bear the increased  price for our
products and we may be forced to sell our products containing these materials at
prices that reduce our profit margins.

      Some of our  raw  materials,  such  as  precious  metals,  are  considered
commodities  and are  subject  to price  volatility.  We  attempt  to limit  our
exposure to fluctuations in the cost of precious materials, including silver, by
holding  the  majority  of our  precious  metal  inventory  through  leasing  or
consignment  arrangements  with our suppliers.  We then  typically  purchase the
precious  metal from our  supplier at the current  market price on the day after
delivery to our  customer  and pass this cost on to our  customer.  In addition,
leasing and consignment  costs have historically  been  substantially  below the
costs to borrow funds to purchase the precious  metals.  We currently  have four
consignment  or leasing  agreements  related to  precious  metals,  all of which
generally have one year terms with varying maturity dates, but can be terminated
by either  party with 30 days'  prior  notice.  Our  results of  operations  and
liquidity will be negatively impacted if:

   -  we are unable to enter into new leasing or consignment arrangements with
      similarly favorable terms after our existing agreements terminate, or

   -  our leasing or consignment fees increase significantly in a short period
      of time and we are unable to recover these increased costs through higher
      sale prices.

      Fees charged by the consignor are driven by interest rates and the market
price of the consigned material. The market price of the consigned material is
determined by the supply of and the demand for the material. Consignment fees
may increase if interest rates or the price of the consigned material increase.

Competition may result in lower prices for our products and reduced sales.

      Both Pulse and AMI Doduco frequently encounter strong competition within
individual product lines from various competitors throughout the world. We
compete principally on the basis of:

   -  product quality and reliability;

   -  global design and manufacturing capabilities;

   -  breadth of product line;

   -  customer service;

   -  price; and

   -  on-time delivery.

      Our inability to successfully compete on any or all of the above factors
may result in reduced sales.


                                       28
<PAGE>

Our backlog is not an accurate measure of future revenues and is subject to
customer cancellation.

      While our backlog consists of firm accepted orders with an express release
date generally scheduled within six months of the order, many of the orders that
comprise our backlog may be canceled by customers without penalty.  It is widely
known that  customers in the  electronics  industry have on occasion  double and
triple-ordered  components from multiple  sources to ensure timely delivery when
quoted lead time is  particularly  long.  In  addition,  customers  often cancel
orders when business is weak and  inventories  are excessive.  Although  backlog
should not be relied on as an indicator of our future  revenues,  our results of
operations could be adversely impacted if customers cancel a material portion of
orders in our backlog.

Fluctuations in foreign currency exchange rates may adversely affect our
operating results.

      We manufacture and sell our products in various regions of the world and
export and import these products to and from a large number of countries.
Fluctuations in exchange rates could negatively impact our cost of production
and sales that, in turn, could decrease our operating results and cash flow. In
addition, if the functional currency of our manufacturing costs strengthened
compared to the functional currency of our competitors manufacturing costs, our
products may get more costly than our competitors. Although we engage in limited
hedging transactions, including foreign currency contracts, to reduce our
transaction and economic exposure to foreign currency fluctuations, these
measures may not eliminate or substantially reduce our risk in the future.

Our international operations subject us to the risks of unfavorable political,
regulatory, labor and tax conditions in other countries.

      We manufacture and assemble most of our products in locations outside the
United States, including the Peoples' Republic of China, or PRC, and Turkey. In
addition, approximately 78% of our revenues for the year ended December 31, 2004
were derived from sales to customers outside the United States. Our future
operations and earnings may be adversely affected by the risks related to, or
any other problems arising from, operating in international markets.

      Risks inherent in doing business internationally may include:

   -  economic and political instability;

   -  expropriation and nationalization;

   -  trade restrictions;

   -  capital and exchange control programs;

   -  transportation delays;

   -  foreign currency fluctuations; and

   -  unexpected changes in the laws and policies of the United States or of the
      countries in which we manufacture and sell our products.

      Pulse has substantially all of its non-consumer  manufacturing  operations
in the  PRC.  Our  presence  in the PRC has  enabled  Pulse  to  maintain  lower
manufacturing  costs  and to adjust  our work  force to  demand  levels  for our
products.  Although  the PRC has a large  and  growing  economy,  the  potential
economic,  political,  legal and labor  developments  entail  uncertainties  and
risks. For example,  in May 2005 the local government in the PRC increased wages
in the  southern  coastal  provinces  of the PRC by 17%.  While the PRC has been
receptive to foreign investment,  we cannot be certain that its current policies
will  continue  indefinitely  into the future.  In the event of any changes that
adversely  affect our  ability to conduct  our  operations  within the PRC,  our
businesses may suffer. We also have  manufacturing  operations in Turkey subject
to unique risks,  including  earthquakes  and those  associated with Middle East
geo-political events.


                                       29
<PAGE>

      We have  benefited  over recent years from  favorable  tax  treatment as a
result of our international operations. We operate in countries where we realize
favorable income tax treatment relative to the U.S. statutory rate. We have also
been granted special tax incentives  commonly known as tax holidays in countries
such as the PRC and  Turkey.  This  favorable  situation  could  change if these
countries were to increase rates or revoke the special tax incentives,  or if we
discontinue  our  manufacturing  operations in any of these countries and do not
replace the  operations  with  operations in other  locations with favorable tax
incentives.  Accordingly,  in the  event  of  changes  in laws  and  regulations
affecting our international  operations,  we may not be able to continue to take
advantage of similar benefits in the future.

Shifting our operations between regions may entail considerable expense.

      In the past we have shifted our  operations  from one region to another in
order to maximize manufacturing and operational efficiency.  We may close one or
more additional  factories in the future. This could entail significant one-time
earnings charges to account for severance,  equipment  write-offs or write-downs
and moving  expenses as well as certain adverse tax  consequences  including the
loss of specialized tax incentives.  In addition,  as we implement  transfers of
our operations we may experience  disruptions,  including strikes or other types
of labor unrest resulting from layoffs or termination of employees.

Liquidity  requirements  could  necessitate  movements of existing cash balances
which may be subject  to  restrictions  or cause  unfavorable  tax and  earnings
consequences.

      A significant  portion of our cash is held  offshore by our  international
subsidiaries and is predominantly  denominated in U.S. dollars.  While we intend
to use cash held overseas to fund our international operations and growth, if we
encounter a significant  domestic need for liquidity,  such as paying dividends,
that we cannot fulfill through borrowings,  equity offerings,  or other internal
or external sources, we may experience unfavorable tax and earnings consequences
if this cash is  transferred to the United  States.  These adverse  consequences
would  occur if the  transfer  of cash  into the  United  States is taxed and no
offsetting  foreign tax credit is available  to offset the U.S.  tax  liability,
resulting in lower earnings. In addition, we may be prohibited from transferring
cash from the PRC. With the exception of approximately $14.0 million of non-cash
retained  earnings  as of  December  31,  2004 in  primarily  the PRC  that  are
restricted  in  accordance  with the PRC  Foreign  Investment  Enterprises  Law,
substantially   all  retained  earnings  are  free  from  legal  or  contractual
restrictions. The PRC Foreign Investment Enterprise Law restricts 10% of our net
earnings in the PRC, up to a maximum amount equal to 50% of the total capital we
have  invested in the PRC. We have not  experienced  any  significant  liquidity
restrictions in any country in which we operate and none are presently foreseen.
However,  foreign  exchange  ceilings  imposed  by  local  governments  and  the
sometimes-lengthy  approval processes which some foreign governments require for
international  cash transfers may delay our internal cash movements from time to
time.

Losing the services of our executive  officers or our other highly qualified and
experienced employees could adversely affect our business.

      Our success depends upon the continued contributions of our executive
officers and management, many of whom have many years of experience and would be
extremely difficult to replace. We must also attract and maintain experienced
and highly skilled engineering, sales and marketing and managerial personnel.
Competition for qualified personnel is intense in our industries, and we may not
be successful in hiring and retaining these people. If we lose the services of
our executive officers or cannot attract and retain other qualified personnel,
our businesses could be adversely affected.


                                       30
<PAGE>

Public health epidemics (such as Severe Acute Respiratory Syndrome) or other
natural disasters (such as earthquakes or fires) may disrupt operations in
affected regions and affect operating results.

      Pulse maintains extensive manufacturing operations in the PRC and Turkey,
as do many of our customers and suppliers. A sustained interruption of our
manufacturing operations, or those of our customers or suppliers, as a result of
complications from severe acute respiratory syndrome or another public health
epidemic or other natural disasters, could have a material adverse effect on our
business and results of operations.

Costs associated with precious metals may not be recoverable.

      AMI Doduco uses silver, as well as other precious metals, in manufacturing
some of its electrical contacts, contact materials and contact subassemblies.
Historically, we have leased or held these materials through consignment
arrangements with our suppliers. Leasing and consignment costs have typically
been below the costs to borrow funds to purchase the metals, and more
importantly, these arrangements eliminate the effects of fluctuations in the
market price of owned precious metal and enable us to minimize our inventories.
AMI Doduco's terms of sale generally allow us to charge customers for precious
metal content based on market value of precious metal on the day after shipment
to the customer. Thus far we have been successful in managing the costs
associated with our precious metals. While limited amounts are purchased for use
in production, the majority of our precious metal inventory continues to be
leased or held on consignment. If our leasing/consignment fees increase
significantly in a short period of time, and we are unable to recover these
increased costs through higher sale prices, a negative impact on our results of
operations and liquidity may result. Leasing/consignment fee increases are
caused by increases in interest rates or volatility in the price of the
consigned material.

The unavailability of insurance against certain business risks may adversely
affect our future operating results.

      As part of our comprehensive risk management program, we purchase
insurance coverage against certain business risks. If any of our insurance
carriers discontinues an insurance policy or significantly reduces available
coverage or increases in the deductibles and we cannot find another insurance
carrier to write comparable coverage, we may be subject to uninsured losses
which may adversely affect our operating results.

Environmental liability and compliance obligations may affect our operations and
results.

      Our manufacturing operations are subject to a variety of environmental
laws and regulations as well as internal programs and policies governing:

   -  air emissions;

   -  wastewater discharges;

   -  the storage, use, handling, disposal and remediation of hazardous
      substances, wastes and chemicals; and

   -  employee health and safety.

      If violations of environmental  laws should occur, we could be held liable
for damages,  penalties,  fines and remedial actions. Our operations and results
could be adversely  affected by any material  obligations  arising from existing
laws,  as  well  as  any  required  material   modifications  arising  from  new
regulations  that may be enacted in the  future.  We may also be held liable for
past disposal of hazardous substances generated by our business or businesses we
acquire.  In  addition,   it  is  possible  that  we  may  be  held  liable  for
contamination discovered at our present or former facilities.


                                       31
<PAGE>

      We are aware of contamination at two locations. In Sinsheim, Germany,
there is a shallow groundwater and soil contamination that is naturally
decreasing over time. The German environmental authorities have not required
corrective action to date. In addition, property in Leesburg, Indiana, which was
acquired with our acquisition of GTI in 1998, is the subject of a 1994
Corrective Action Order to GTI by the Indiana Department of Environmental
Management (IDEM). Although we sold the property in early 2005, we retained the
responsibility for existing environmental issues at the site. The order requires
us to investigate and take corrective actions. Substantially all of the
corrective actions relating to impacted soil have been taken and IDEM has issued
us no further action letters for the remediated areas. Studies and analysis are
ongoing with respect to a ground water issue. We anticipate making additional
environmental expenditures in the future to continue our environmental studies,
analysis and remediation activities with respect to the ground water. Based on
current knowledge, we do not believe that any future expenses or liabilities
associated with environmental remediation will have a material impact on our
operations or our consolidated financial position, liquidity or operating
results; however, we may be subject to additional costs and liabilities if the
scope of the contamination or the cost of remediation exceeds our current
expectations.

Item 3:  Quantitative and Qualitative Disclosures about Market Risk

      There were no material changes in market risk exposures that affect the
quantitative and qualitative disclosures presented in our Form 10-K for the year
ended December 31, 2004.

Item 4:  Controls and Procedures

      An evaluation was performed under the supervision and with the
participation of our Chief Executive Officer and Chief Financial Officer, of the
effectiveness of the design and operation of the disclosure controls and
procedures pursuant to Rule 13a-15 under the Exchange Act of 1934 as of July 1,
2005. Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer have concluded that the disclosure controls and procedures are
effective to ensure that information required to be disclosed by us in the
reports that we file or submit is recorded, processed, summarized and reported,
as specified in the Commission's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by an issuer in the reports
that it files or submits under the Act is accumulated and communicated to the
issuer's management, including its principal executive and principal financial
officers, or persons performing similar functions, as appropriate to allow
timely decisions regarding required disclosure.

      There were no changes in these controls or procedures that occurred during
the three months ended July 1, 2005 that has materially affected, or is
reasonably likely to materially affect, these controls or procedures.

      On September 13, 2004, we acquired additional shares of common stock in
Full Rise Electronic Co., Ltd. (FRE) bringing our cumulative ownership to 51%.
Management excluded from its assessment of the effectiveness of the Company's
internal control over financial reporting as of December 31, 2004, FRE's
internal control over financial reporting. FRE's total assets and total revenues
represent 6% and 2% respectively, of the related consolidated financial
statement amounts as of and for the year ended December 31, 2004.

      A company's internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company's internal
control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are


                                       32
<PAGE>

being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company's
assets that could have a material effect on the financial statements. Because of
its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.


                                       33
<PAGE>

<TABLE>
                           PART II. OTHER INFORMATION
<S>         <C>                                                                            <C>
Item 1      Legal Proceedings                                                              None

Item 2      Changes in Securities and Use of Proceeds                                      None

Item 3      Defaults Upon Senior Securities                                                None

Item 4      Submission of Matters to a Vote of Security Holders

            The Annual Meeting of Shareholders was held on May 18,
            2005 at which the following matters were submitted to a
            vote of the shareholders.

            (a)   Messrs. Dennis J. Horowitz, and Mark Melliar-Smith
                  were elected to a three-year term as directors of
                  the Company. The results of the votes were as
                  follows:

                                                   Withhold
                                       For         Authority
                                    ----------     ---------
            Dennis J. Horowitz      34,754,338       346,179

            Mark Melliar-Smith      34,549,975       450,542

            In addition, each of the following directors continued in
            office after the meeting: Alan E. Barton, John E.
            Burrows, Jr., David H. Hofmann, Edward M. Mazze, and
            James M. Papada, III.

            (b)   The shareholders approved the amendment to the
                  Technitrol, Inc. Board of Directors Stock Plan to
                  increase the number of shares authorized for
                  issuance under the plan.

            The result of the vote was as follows:

                                       For          Against     Withhold Authority    Non-Vote
                                    ----------     ---------    ------------------    ---------
                                    28,313,104     2,176,222          58,757          4,452,434

Item 5      Other Information                                                              None

Item 6      Exhibits

            (a)   Exhibits

                  The Exhibit Index is on page 35.
</TABLE>


                                       34
<PAGE>

                                  Exhibit Index

2.1         Share Purchase Agreement, dated as of January 9, 2003, by Pulse
            Electronics (Singapore) Pte. Ltd. and Forfin Holdings B.V. that are
            signatories thereto (incorporated by reference to Exhibit 2 to our
            Form 8-K dated January 10, 2003).

3.1         Amended and Restated Articles of Incorporation (incorporated by
            reference to Exhibit 3.1 to our Form 10-K for the year ended
            December 26, 2003)

3.3         By-laws (incorporated by reference to Exhibit 3.3 to our Form 10-K
            for the year ended December 27, 2002).

4.1         Rights Agreement, dated as of August 30, 1996, between Technitrol,
            Inc. and Registrar and Transfer Company, as Rights Agent
            (incorporated by reference to Exhibit 3 to our Registration
            Statement on Form 8-A dated October 24, 1996).

4.2         Amendment No. 1 to the Rights Agreement, dated March 25, 1998,
            between Technitrol, Inc. and Registrar and Transfer Company, as
            Rights Agent (incorporated by reference to Exhibit 4 to our
            Registration Statement on Form 8-A/A dated April 10, 1998).

4.3         Amendment No. 2 to the Rights Agreement, dated June 15, 2000,
            between Technitrol, Inc. and Registrar and Transfer Company, as
            Rights Agent (incorporated by reference to Exhibit 5 to our
            Registration Statement on Form 8-A/A dated July 5, 2000).

10.1        Technitrol, Inc. 2001 Employee Stock Purchase Plan (incorporated by
            reference to Exhibit 4.1 to our Registration Statement on Form S-8
            dated June 28, 2001, File Number 333-64060).

10.1(1)     Form of Stock Option Agreement (incorporated by reference to Exhibit
            10.1(1) to our Form 10-Q for the three months ended October 1,
            2004).

10.2        Technitrol, Inc. Restricted Stock Plan II, as amended and restated
            as of January 1, 2001 (incorporated by reference to Exhibit C, to
            our Definitive Proxy on Schedule 14A dated March 28, 2001).

10.3        Technitrol, Inc. 2001 Stock Option Plan (incorporated by reference
            to Exhibit 4.1 to our Registration Statement on Form S-8 dated June
            28, 2001, File Number 333-64068).

10.4        Technitrol, Inc. Board of Directors Stock Plan, as amended
            (incorporated by reference to Exhibit 10 to our Form 8-K dated May
            18, 2005).

10.5        Revolving Credit Agreement, by and among Technitrol, Inc. and
            certain of its subsidiaries, JPMorgan Chase Bank. as Agent and
            Lender, and certain other Lenders that are signatories thereto,
            dated as of June 17, 2004.

10.6        Lease Agreement, dated October 15, 1991, between Ridilla-Delmont and
            AMI Doduco, Inc. (formerly known as Advanced Metallurgy
            Incorporated), as amended September 21, 2001 (incorporated by
            reference to Exhibit 10.6 to the Company's Amendment No. 1 to
            Registration Statement on Form S-3 dated February 28, 2002, File
            Number 333-81286).

10.7        Incentive Compensation Plan of Technitrol, Inc. (incorporated by
            reference to Exhibit 10.7 to Amendment No. 1 to our Registration
            Statement on Form S-3 filed on February 28, 2002, File Number
            333-81286).


                                       35
<PAGE>

                            Exhibit Index, continued

10.8        Technitrol, Inc. Supplemental Retirement Plan, amended and restated
            January 1, 2002 (incorporated by reference to Exhibit 10.8 to
            Amendment No. 1 to our Registration Statement on Form S-3 filed on
            February 28, 2002, File Number 333-81286).

10.9        Agreement between Technitrol, Inc. and James M. Papada, III, dated
            July 1, 1999, as amended April 23, 2001, relating to the Technitrol,
            Inc. Supplemental Retirement Plan (incorporated by reference to
            Exhibit 10.9 to Amendment No. 1 to our Registration Statement on
            Form S-3 filed on February 28, 2002, File Number 333-81286).

10.10       Letter Agreement between Technitrol, Inc. and James M. Papada, III,
            dated April 16, 1999, as amended October 18, 2000 (incorporated by
            reference to Exhibit 10.10 to Amendment No. 1 to our Registration
            Statement on Form S-3 filed on February 28, 2002, File Number
            333-81286).

10.10(1)    Letter Agreement between Technitrol, Inc. and James M. Papada, III
            dated July 1, 2004 (incorporated by reference to Exhibit 10.10(1) to
            our Form 10-Q for the three months ended October 1, 2004).

10.11       Form of Indemnity Agreement (incorporated by reference to Exhibit
            10.11 to our Form 10-K for the year ended December 27, 2002).

10.12       Technitrol Inc. Supplemental Savings Plan (incorporated by reference
            to Exhibit 10.15 to our Form 10-Q for the three months ended
            September 26, 2003)

10.13       Technitrol, Inc. 401(K) Retirement Savings Plan, as amended
            (incorporated by reference to post-effective Amendment No. 1, to our
            Registration Statement on Form S-8 filed on October 31, 2003, File
            Number 033-35334) (incorporated by reference to Exhibit 10.16 to our
            Form 10-Q for the three months ended March 26, 2003).

10.14       Pulse Engineering, Inc. 401(K) Plan as amended (incorporated by
            reference to post-effective Amendment No. 1, to our Registration
            Statement on Form S-8 filed on October 31, 2003, File Number
            033-94073) (incorporated by reference to Exhibit 10.16 to our Form
            10-Q for the three months ended March 26, 2003).

10.15       Amended and Restated Short-Term Incentive Plan (incorporated by
            reference to Exhibit 10.15 to our Form 10-K for the year ended
            December 31, 2004).

10.16       Amended and Restated Consignment Agreement, Dated May 27, 1997, by
            and among Rhode Island Hospital Trust National Bank, Doduco GmbH,
            Doduco Espana, S.A. and Technitrol, Inc. (incorporated by reference
            to Exhibit 10.16 to our Form 10-Q for the three months ended October
            1, 2004).

10.16(1)    First Amendment to Amended and Restated Consignment Agreement, Dated
            May 27, 1997, by and among Rhode Island Hospital Trust National
            Bank, Doduco GmbH, Doduco Espana, S.A. and Technitrol, Inc.
            (incorporated by reference to Exhibit 10.16 to our Form 10-Q for the
            three months ended October 1, 2004).


                                       36
<PAGE>

                            Exhibit Index, continued

10.16(2)    Second Amendment to Amended and Restated Consignment Agreement,
            Dated May 27, 1997, by and among Rhode Island Hospital Trust
            National Bank, Doduco GmbH, Doduco Espana, S.A. and Technitrol, Inc.
            (incorporated by reference to Exhibit 10.16(2) to our Form 10-Q for
            the three months ended October 1, 2004).

10.16(3)    Third Amendment to Amended and Restated Consignment Agreement, Dated
            May 27, 1997, by and among Rhode Island Hospital Trust National
            Bank, Doduco GmbH, Doduco Espana, S.A. and Technitrol, Inc.
            (incorporated by reference to Exhibit 10.16(3) to our Form 10-Q for
            the three months ended October 1, 2004).

10.17       Amended and Restated Consignment Agreement dated July 29, 2005,
            among Fleet Precious Metals Inc. d/b/a Bank of America Precious
            Metals, Technitrol, Inc. and AMI Doduco, Inc. (incorporated by
            reference to Exhibit 10.1 to our Form 8-K dated August 2, 2005).

10.18       Silver Lease Agreement dated April 9, 1996 between Standard
            Chartered Bank Mocatta Bullion - New York and Advanced Metallurgy,
            Inc. and Guarantee dated April 29, 1996 by Technitrol, Inc.
            (incorporated by reference to Exhibit 10.18 to our Form 10-Q for the
            three months ended October 1, 2004).

10.18(1)    Letter Agreement dated April 9, 1996 between Standard Chartered Bank
            Mocatta Bullion - New York and Advanced Metallurgy, Inc.
            (incorporated by reference to Exhibit 10.18(1) to our Form 10-Q for
            the three months ended October 1, 2004).

10.18(2)    Amendment to Silver Lease Agreement dated February 14, 1997 between
            Standard Chartered Bank Mocatta Bullion - New York and Advanced
            Metallurgy Inc. (incorporated by reference to Exhibit 10.18(2) to
            our Form 10-Q for the three months ended October 1, 2004).

10.18(3)    Amendment to Silver Lease Agreement dated November 3, 1997 between
            Standard Chartered Bank Mocatta Bullion - New York and Advanced
            Metallurgy Inc. (incorporated by reference to Exhibit 10.18(3) to
            our Form 10-Q for the three months ended October 1, 2004).

10.18(4)    Amendment to Silver Lease Agreement dated May 21, 2003 between
            Standard Chartered Bank Mocatta Bullion - New York and AMI Doduco,
            Inc. (incorporated by reference to Exhibit 10.18(4) to our Form 10-Q
            for the three months ended October 1, 2004).

10.19       Consignment Agreement dated September 24, 2004 between Mitsui & Co.
            Precious Metals Inc., and AMI Doduco, Inc. (incorporated by
            reference to Exhibit 10.19 to our Form 10-Q for the three months
            ended October 1, 2004).

10.20       Unlimited Guaranty dated December 16, 1996 by Technitrol, Inc. in
            favor of Rhode Island Hospital Trust National Bank (incorporated by
            reference to Exhibit 10.20 to our Form 10-Q for the three months
            ended October 1, 2004).


                                       37
<PAGE>

                            Exhibit Index, continued

10.21       Corporate Guaranty dated November 1, 2004 by Technitrol, Inc. in
            favor of Mitsui & Co. Precious Metals, Inc. (incorporated by
            reference to Exhibit 10.21 to our Form 10-Q for the three months
            ended October 1, 2004).

10.22       Separation Agreement between Technitrol, Inc. and Albert Thorp, III
            dated June 29, 2005.

10.30       Schedule of Board of Director and Committee Fees (incorporated by
            reference to Exhibit 10.30 to our Form 10-K for the year ended
            December 31, 2004).

31.1        Certification of Principal Executive Officer pursuant to Section
            302(a) of the Sarbanes-Oxley Act of 2002.

31.2        Certification of Principal Financial Officer pursuant to Section
            302(a) of the Sarbanes-Oxley Act of 2002.

32.1        Certification of Principal Executive Officer pursuant to 18 U.S.C.
            Section 1350, as adopted pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.

32.2        Certification of Principal Financial Officer pursuant to 18 U.S.C.
            Section 1350, as adopted pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.


                                       38
<PAGE>

                                   Signatures

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                  Technitrol, Inc.
                                 ----------------------------------------------
                                  (Registrant)

 August 9, 2005                   /s/Drew A. Moyer
--------------------------       ----------------------------------------------
 (Date)                           Drew A. Moyer
                                  Senior Vice President and Chief Financial
                                  Officer
                                  (duly authorized officer, principal financial
                                  and accounting officer)


                                       39