|   |                      | UNITED                STATES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|---------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                      | SECURITIES                AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                      | WASHINGTON,                D.C.  20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | FORM                10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (Mark                one) |
|   | X                         | Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                      | of                1934 for the quarterly period ended September 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 for the transition period from _____to _____                                                                                                                                                                                                                                                                                                                                                         |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | Commission                file                Number                        0-11720                                                                                                                                                                                                                                                                                                                                |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | Air                T, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                      | (Exact                name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |               Delaware                                                                      52-1206400 |
|   |                      |    (State                or other jurisdiction                of                                                           (I.R.S.                Employer                                                           |
|   |                      |     incorporation                or                organization)                                                          Identification                No.)                                                         |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | Post                Office Box 488, Denver, North Carolina  28037                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                      | (Address                of principal executive offices, including zip code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | (828)                464-8741                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                      | (Registrant's                telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |      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                such filing requirements for the past 90 days.                            |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | Yes   X                  No                ______                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |      Indicate                by check mark whether the registrant is a large accelerated filer,                an                accelerated filer or a non-accelerated filer (see definition of                “accelerated filer and large accelerated filer) in Rule 12b-2 of the                Exchange Act)                                                                                                                                                                                           |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |                             Large                Accelerated Filer____  Accelerated                Filer_____  Non-Accelerated Filer__X__                                                                                                                                                                                                                                  |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |      Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act)                                                                                                                                                                                                                                                                                                                                                 |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | Yes               No                ___X___                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | APPLICABLE                ONLY TO CORPORATE ISSUERS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      |      Indicate                the number of shares outstanding of each of the issuer's classes                of common                stock, as of the latest practicable date.                                                                                                                                                                                                                                                                                                                                   |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                      | 2,423,506                shares of Common Stock, par value of $.25 per share were outstanding                as of                October 31, 2007.  Common Stock is the only class of stock                outstanding.                                                                                                                                                                                                                                                                                                         |
|   |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

|                                                                    |                                                                 |   |   |   |
|-------------------------------------------------------------------------|----------------------------------------------------------------------|--------|--------|--------|
|                                                                    | INDEX                                                                |   |   |   |
|                                                                    |                                                                 |   | PAGE   |   |
| PART                I.  FINANCIAL INFORMATION                 |                                                                 |   |   |
|                                                                    |                                                                 |   |   |   |
| Item                1.  Financial Statements                  |                                                                 |   |   |
|                                                                    |                                                                 |   |   |   |
| Condensed                Consolidated Statements of Operations          |                                                                 |   |   |
| for                the three and six months ended                       |                                                                 |   | 3      |   |
| September                30, 2007 and 2006 (Unaudited)                  |                                                                 |   |   |   |
|                                                                    |                                                                 |   |   |   |   |
| Condensed                Consolidated Balance Sheets at                 |                                                                 |   |   |   |
| September                30, 2007 (Unaudited)                           |                                                                 |   |   |   |
| and                March 31, 2007                                       |                                                                 |   | 4      |   |
|                                                                    |                                                                 |   |   |   |   |
| Condensed                Consolidated Statements of Cash                |                                                                 |   |   |   |
| Flows                for the six months                                 |                                                                 |   |   |   |
| ended                September 30, 2007 and 2006 (Unaudited)            |                                                                 |   | 5      |   |
|                                                                    |                                                                 |   |   |   |   |
| Condensed                Consolidated Statements of Stockholders’ |                                                                 |   |   |   |
| Equity                and Comprehensive Income for the                  |                                                                 |   |   |   |
| six                months ended September 30,                           |                                                                 |   |   |   |
| 2007                and 2006(Unaudited)                                 |                                                                 |   | 6      |   |
|                                                                    |                                                                 |   |   |   |   |
| Notes                to Condensed Consolidated Financial                |                                                                 |   |   |   |
| Statements                (Unaudited)                                   |                                                                 |   | 7-12   |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                2.                                                  | Management’s                Discussion and Analysis            |   |   |   |   |
|                                                                    | of                Financial Condition and Results                    |   |   |   |   |
|                                                                    | of                Operations                                         |   |   | 12-19  |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                3.                                                  | Quantitative                and Qualitative Disclosure               |   |   |   |   |
|                                                                    | About                Market Risk                                     |   |   | 19     |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                4.                                                  | Controls                and Procedures                               |   |   | 19-20  |   |
|                                                                    |                                                                 |   |   |   |   |
| PART                II.  OTHER INFORMATION                    |                                                                 |   |   |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                1.                                                  | Legal                Proceedings                                     |   |   | 20     |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                2.                                                  | Unregistered                Sales of Equity Securities and           |   |   |   |   |
|                                                                    | Use                of Proceeds                                       |   |   | 20     |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                4.                                                  | Submission                of Matters to a Vote of Securities Holders |   |   | 21     |   |
|                                                                    |                                                                 |   |   |   |   |
| Item                6.                                                  | Exhibits                                                             |   |   | 22     |   |
|                                                                    |                                                                 |   |   |   |   |
|                                                                    | Signatures                                                           |   |   | 23     |   |
|                                                                    |                                                                 |   |   |   |   |
|                                                                    | Exhibit                Index                                         |   |   | 24     |   |
|                                                                    |                                                                 |   |   |   |   |
|                                                                    | Officers’                Certifications                        |   |   | 25-27  |   |

----

|                                                                     |   | Three                Months Ended |       |   | Six                Months Ended |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|---------------------------------|--------|
|                                                                     |   | September                30,      |       |   | September                30,    |   |
|                                                                     |   | 2007                              |       |   | 2006                            |   |   | 2007 |   |   | 2006 |   |
| Operating                Revenues:                                       |   |                              |       |   |                            |   |   |   |   |   |   |   |
| Overnight                air cargo                                       |   | $                                 | 9,503,715  |   |                            | $      | 8,646,307 |   |   | $ | 18,016,166 |   |   | $ | 17,222,259 |   |
| Ground                equipment                                          |   |                              | 7,908,102  |   |                            |   | 6,074,798 |   |   |   | 15,191,618 |   |   |   | 13,582,655 |   |
|                                                                     |   |                              | 17,411,817 |   |                            |   | 14,721,105 |   |   |   | 33,207,784 |   |   |   | 30,804,914 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Expenses:                                       |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Flight-air                cargo                                          |   |                              | 4,910,228  |   |                            |   | 4,313,963 |   |   |   | 9,260,290 |   |   |   | 8,487,824 |   |
| Maintenance-air                cargo                                     |   |                              | 3,171,403  |   |                            |   | 3,111,313 |   |   |   | 6,010,564 |   |   |   | 6,209,996 |   |
| Ground                equipment                                          |   |                              | 6,110,445  |   |                            |   | 4,470,339 |   |   |   | 11,288,813 |   |   |   | 9,728,603 |   |
| General                and administrative                                |   |                              | 2,246,464  |   |                            |   | 2,125,093 |   |   |   | 4,583,370 |   |   |   | 4,396,645 |   |
| Depreciation                and amortization                             |   |                              | 125,048    |   |                            |   | 147,962 |   |   |   | 248,922 |   |   |   | 324,796 |   |
|                                                                     |   |                              | 16,563,588 |   |                            |   | 14,168,670 |   |   |   | 31,391,959 |   |   |   | 29,147,864 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Income                                          |   |                              | 848,229    |   |                            |   | 552,435 |   |   |   | 1,815,825 |   |   |   | 1,657,050 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Non-operating                Expense (Income) Expense:                   |   |                              |       |   |                            |   |   |   |   |   |   |   |   |
| Interest,                net                                             |   |                              | 64,334     |   |                            |   | 27,908 |   |   |   | 121,581 |   |   |   | 32,017 |   |
| Deferred                retirement expense                               |   |                              | (3,399     | )      |                            |   | 5,250 |   |   |   | 101 |   |   |   | 10,500 |   |
| Investment                income and other                               |   |                              | (47,345    | )      |                            |   | (58,575 | ) |   |   | (113,882 | ) |   |   | (119,016 | ) |
|                                                                     |   |                              | 13,590     |   |                            |   | (25,417 | ) |   |   | 7,800 |   |   |   | (76,499 | ) |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                Before Income Taxes                              |   |                              | 834,639    |   |                            |   | 577,852 |   |   |   | 1,808,025 |   |   |   | 1,733,549 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income                Tax Expense                                        |   |                              | 296,989    |   |                            |   | 206,785 |   |   |   | 644,007 |   |   |   | 635,687 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net                Earnings                                              |   | $                                 | 537,650    |   |                            | $      | 371,067 |   |   | $ | 1,164,018 |   |   | $ | 1,097,862 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted Net                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                Per Share                                        |   | $                                 | 0.22       |   |                            | $      | 0.14 |   |   | $ | 0.47 |   |   | $ | 0.41 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                Average Shares Outstanding:                      |   |                              |       |   |                            |   |   |   |   |   |   |   |   |
| Basic                and Diluted                                         |   |                              | 2,432,392  |   |                            |   | 2,671,293 |   |   |   | 2,446,949 |   |   |   | 2,671,293 |   |
|                                                                     |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| See                notes to condensed consolidated financial statements. |   |                              |       |   |                            |   |   |   |   |

----

|                                                                                                                        |   | September                30, 2007 |       |   | March                31, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|-------------------------------|--------|
| ASSETS                                                                                                                      |   | (Unaudited)                       |       |   | (Note)                        |   |
| Current                Assets:                                                                                              |   |                              |       |   |                          |   |
| Cash                and cash equivalents                                                                                    |   | $                                 | 1,869,494  |   |                          | $      | 2,895,499 |   |
| Marketable                securities                                                                                        |   |                              | 891,001    |   |                          |   | 860,870 |   |
| Accounts                receivable, less allowance                                                                          |   |                              |       |   |                          |   |   |   |
| for                doubtful accounts of $220,000 at September                                                               |   |                              |       |   |                          |
|   30,                2007 and $413,000 at March 31, 2007                                                          |   |                              | 8,749,710  |   |                          |   | 7,643,391 |   |
| Income                taxes receivable                                                                                      |   |                              | 238,884    |   |                          |   | - |   |
| Notes                and other non-trade receivables-current                                                                |   |                              | 31,883     |   |                          |   | 68,730 |   |
| Inventories,                net                                                                                             |   |                              | 9,171,602  |   |                          |   | 8,085,755 |   |
| Deferred                tax assets                                                                                          |   |                              | 660,010    |   |                          |   | 724,534 |   |
| Prepaid                expenses and other                                                                                   |   |                              | 170,758    |   |                          |   | 325,533 |   |
|   Total                Current Assets                                                                             |   |                              | 21,783,342 |   |                          |   | 20,604,312 |   |
|                                                                                                                        |   |                              |       |   |                          |   |   |   |
| Property                and Equipment                                                                                       |   |                              | 7,653,524  |   |                          |   | 8,113,363 |   |
| Less                accumulated depreciation                                                                                |   |                              | (5,844,919 | )      |                          |   | (5,820,852 | ) |
|   Property                and Equipment, net                                                                      |   |                              | 1,808,605  |   |                          |   | 2,292,511 |   |
|                                                                                                                        |   |                              |       |   |                          |   |   |   |
| Deferred                Tax Assets                                                                                          |   |                              | 257,119    |   |                          |   | 170,353 |   |
| Cash                Surrender Value of Life Insurance Policies                                                              |   |                              | 1,330,706  |   |                          |   | 1,296,703 |   |
| Notes                and Other Non-Trade Receivables-Long Term                                                              |   |                              | 183,848    |   |                          |   | 200,529 |   |
| Other                Assets                                                                                                 |   |                              | 81,182     |   |                          |   | 50,576 |   |
|   Total                Assets                                                                                     |   | $                                 | 25,444,802 |   |                          | $      | 24,614,984 |   |
|                                                                                                                        |   |                              |       |   |                          |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                         |   |                              |       |   |                          |   |   |   |
| Current                Liabilities:                                                                                         |   |                              |       |   |                          |   |   |   |
| Accounts                payable                                                                                             |   | $                                 | 4,661,306  |   |                          | $      | 5,304,022 |   |
| Accrued                expenses                                                                                             |   |                              | 2,001,867  |   |                          |   | 2,236,106 |   |
| Income                taxes payable                                                                                         |   |                              | -          |   |                          |   | 194,840 |   |
| Current                portion of long-term debt and obligations                                                            |   |                              | 125,010    |   |                          |   | 144,684 |   |
|  Total                Current Liabilities                                                                              |   |                              | 6,788,183  |   |                          |   | 7,879,652 |   |
|                                                                                                                        |   |                              |       |   |                          |   |   |   |
| Capital                Lease Obligations (less current portion)                                                             |   |                              | 70,457     |   |                          |   | 77,702 |   |
| Long-Term                Debt (less current portion)                                                                        |   |                              | 2,465,547  |   |                          |   | 575,204 |   |
| Deferred                Retirement Obligations (less current portion)                                                       |   |                              | 638,301    |   |                          |   | 633,693 |   |
|                                                                                                                        |   |                              |       |   |                          |   |   |   |
| Stockholders'                Equity:                                                                                        |   |                              |       |   |                          |   |   |   |
| Preferred                stock, $1 par value, authorized 50,000 shares,                                                     |   |                              |       |   |                          |
|   none                issued                                                                                      |   |                              | -          |   |                          |   | - |   |
| Common                stock, par value $.25; authorized 4,000,000 shares;                                                   |   |                              |       |   |                          |
| 2,423,506                and 2,509,998 shares issued and                                                                    |   |                              |       |   |                          |
|   outstanding                                                                                                     |   |                              | 605,876    |   |                          |   | 627,499 |   |
| Additional                paid in capital                                                                                   |   |                              | 5,541,363  |   |                          |   | 6,058,070 |   |
| Retained                earnings                                                                                            |   |                              | 9,211,773  |   |                          |   | 8,658,606 |   |
| Accumulated                other comprehensive income, net                                                                  |   |                              | 123,302    |   |                          |   | 104,558 |   |
| Total                Stockholders' Equity                                                                                   |   |                              | 15,482,314 |   |                          |   | 15,448,733 |   |
|   Total                Liabilities and Stockholders’ Equity                                                 |   | $                                 | 25,444,802 |   |                          | $      | 24,614,984 |   |
|                                                                                                                        |   |                              |       |   |                          |   |   |   |
| Note: The                balance sheet at March 31, 2007 has been derived from the audited                consolidated |   |
| financial                statements included in the Company's Annual Report on Form 10-K for                the             |   |
|        fiscal                year ended March 31, 2007.                                  |   |                              |       |   |                          |   |   |   |
|                                                                                                                        |   |                              |       |   |                          |   |   |   |
| See                notes to condensed consolidated financial statements.                                                    |   |                              |       |   |                          |

----

|                                                                                                 |   | Six                Months Ended |       |
|------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                                                                 |   | September                30,    |       |
|                                                                                                 |   | 2007                            |       |   | 2006 |   |
| Cash                flows from operating activities:                                                 |   |                            |       |   |   |   |
| Net                earnings                                                                          |   | $                               | 1,164,018  |   |   | $ | 1,097,862 |   |
| Adjustments                to reconcile net earnings to net                                          |   |                            |       |   |   |   |   |   |
|  cash                provided by operating activities:                                          |   |                            |       |   |   |   |   |   |
| Change                in accounts receivable and inventory reserves                                  |   |                            | (133,106   | ) |   |   | 238,169 |   |
| Depreciation                and amortization                                                         |   |                            | 248,922    |   |   |   | 324,796 |   |
| Increase                in cash surrender value of life insurance                                    |   |                            | (34,003    | ) |   |   | (34,001 | ) |
| Deferred                taxes                                                                        |   |                            | (34,034    | ) |   |   | (118,994 | ) |
| Warranty                reserve                                                                      |   |                            | 38,000     |   |   |   | (67,464 | ) |
| Compensation                expense related to stock options                                         |   |                            | 174,556    |   |   |   | 89,108 |   |
| Change                in assets and liabilities which provided (used) cash:                          |   |                            |       |   |   |   |   |   |
| Accounts                receivable                                                                   |   |                            | (913,171   | ) |   |   | 3,392,926 |   |
| Notes                receivable                                                                      |   |                            | 53,528     |   |   |   | 6,756 |   |
| Income                taxes receivable/payable                                                       |   |                            | (433,724   | ) |   |   | (258,438 | ) |
| Inventories                                                                                          |   |                            | (686,297   | ) |   |   | (4,442,843 | ) |
| Prepaid                expenses and other                                                            |   |                            | 124,168    |   |   |   | 102,532 |   |
| Accounts                payable                                                                      |   |                            | (642,716   | ) |   |   | 405,969 |   |
| Accrued                expenses and other current liabilities                                        |   |                            | (279,616   | ) |   |   | (312,620 | ) |
|  Total                adjustments                                                               |   |                            | (2,517,493 | ) |   |   | (674,104 | ) |
|  Net                cash (used) provided by operating activities                                |   |                            | (1,353,475 | ) |   |   | 423,758 |   |
| Cash                flows from investing activities:                                                 |   |                            |       |   |   |   |   |   |
| Capital                expenditures                                                                  |   |                            | (224,608   | ) |   |   | (67,136 | ) |
|  Net                cash used in investing activities                                           |   |                            | (224,608   | ) |   |   | (67,136 | ) |
| Cash                flows from financing activities:                                                 |   |                            |       |   |   |   |   |   |
| Payments                on aircraft term loan                                                        |   |                            | (64,532    | ) |   |   | (51,568 | ) |
| Net                borrowings on line of credit                                                      |   |                            | 1,946,606  |   |   |   | 1,906,161 |   |
| Stock                repurchase                                                                      |   |                            | (712,886   | ) |   |   | - |   |
| Payments                on capital leases                                                            |   |                            | (6,259     | ) |   |   | (40,996 | ) |
| Payment                of cash dividend                                                              |   |                            | (610,851   | ) |   |   | (667,823 | ) |
|  Net                cash provided by financing activities                                       |   |                            | 552,078    |   |   |   | 1,145,774 |   |
| Net                (decrease) increase in cash and cash equivalents                                  |   |                            | (1,026,005 | ) |   |   | 1,502,396 |   |
| Cash                and cash equivalents at beginning of period                                      |   |                            | 2,895,499  |   |   |   | 2,702,424 |   |
| Cash                and cash equivalents at end of period                                            |   | $                               | 1,869,494  |   |   | $ | 4,204,820 |   |
|                                                                                                 |   |                            |       |   |   |   |   |   |
| Supplemental                disclosure of cash flow information:                                     |   |                            |       |   |   |   |   |   |
| Cash                paid during the period for:                                                      |   |                            |       |   |   |   |   |   |
| Interest                                                                                             |   | $                               | 134,469    |   |   | $ | 37,317 |   |
| Income                taxes                                                                          |   |                            | 1,113,354  |   |   |   | 1,011,155 |   |
|                                                                                                 |   |                            |       |   |   |   |   |   |
| Summary                of significant non-cash information:                                          |   |                            |       |   |   |   |   |   |
| Increase                (decrease) in fair value of marketable securities, net of                tax |   | $                               | 18,744     |   |   | $ | 18,545 |   |
| Leased                equipment transferred to (from) inventory                                      |   |                            | (458,300   | ) |   |   | 1,476,708 |   |
|                                                                                                 |   |                            |       |   |   |   |   |   |
| See                notes to condensed consolidated financial statements.                             |   |                            |       |   |   |   |   |   |
|                                                                                                 |   |                            |       |   |   |   |   |   |

----

|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     | Accumulated   |      |          |          |        |
|--------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|------------|--------|---------|----------|--------|---------|-----------|--------|----------|---------------|-----------|---------------|---------------|-------------|
|                                                                     |   | Common                Stock |      |   | Additional |   |    | Retained |   |    | Other     |   |     | Total         |      |
|                                                                     |   |                        |      |   |       |   |    | Paid-In  |   |    | Earnings  |   |     | Comprehensive |      |          | Stockholders' |        |
|                                                                     |   | Shares                      |      |   | Amount     |   |    | Capital  |   |    |      |   |     | Income        |      |          | Equity        |        |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |
| Balance,                March 31, 2006                                   |   |                        | 2,671,293 |   |       | $      | 667,823 |     |   | $       | 6,939,357 |   |     | $             | 6,840,383 |          |          | $           | 52,479 |   |   | $ | 14,500,042 |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| Comprehensive                Income:                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| Net                earnings                                              |   |                        |      |   |       |   |    |     |   |    |      |   |     |          | 1,097,862 |          |          |        |   |   |   |   |   |   |
| Unrealized                loss                                           |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| on                securities, net of tax                                 |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      | 18,545        |          |        |   |   |   |
| Total                Comprehensive Income                                |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   | 1,116,407 |   |
| Cash                dividend                                             |   |                        |      |   |       |   |    |     |   |    |      |   |     |          | (667,823  | )             |          |        |   |   |   |   | (667,823 | ) |
| Compensation                expense                                      |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| related                to stock options                                  |   |                        |      |   |       |   |    |     |   |    | 89,108    |   |     |          |      |          |          |        |   |   |   |   | 89,108 |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| Balance,                September 30, 2006                               |   |                        | 2,671,293 |   |       | $      | 667,823 |     |   | $       | 7,028,465 |   |     | $             | 7,270,422 |          |          | $           | 71,024 |   |   | $ | 15,037,734 |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          | Accumulated |   |   |   |   |   |
|                                                                     |   | Common                Stock |      |   | Additional |   |    | Retained |   |    | Other     |   |     | Total         |      |
|                                                                     |   |                        |      |   |       |   |    |     |   | Paid-In |      |   | Earnings |          |      | Comprehensive |          |        | Stockholders' |   |
|                                                                     |   | Shares                      |      |   | Amount     |   |    | Capital  |   |    |      |   |     |          | Income    |          |          | Equity      |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| Balance,                March 31, 2007                                   |   |                        | 2,509,998 |   |       | $      | 627,499 |     |   | $       | 6,058,070 |   |     | $             | 8,658,606 |          |          | $           | 104,558 |   |   | $ | 15,448,733 |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| Comprehensive                Income:                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| Net                earnings                                              |   |                        |      |   |       |   |    |     |   |    |      |   |     |          | 1,164,018 |          |          |        |   |   |   |   |   |   |
| Unrealized                gain                                           |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| on                securities, net of tax                                 |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      | 18,744        |          |        |   |   |   |
| Total                Comprehensive Income                                |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   | 1,182,762 |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   | - |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   | - |   |
| Cash                dividend                                             |   |                        |      |   |       |   |    |     |   |    |      |   |     |          | (610,851  | )             |          |        |   |   |   |   | (610,851 | ) |
| Compensation                expense                                      |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| related                to stock options                                  |   |                        |      |   |       |   |    |     |   |    | 174,556   |   |     |          |      |          |          |        |   |   |   |   | 174,556 |   |
| Stock                repurchase                                          |   |                        | (86,492   | )      |       |   | (21,623 | )        |   |    | (691,263  | )      |     |          |      |          |          |        |   |   |   |   | (712,886 | ) |
| Balance,                September 30, 2007                               |   |                        | 2,423,506 |   |       | $      | 605,876 |     |   | $       | 5,541,363 |   |     | $             | 9,211,773 |          |          | $           | 123,302 |   |   | $ | 15,482,314 |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
|                                                                     |   |                        |      |   |       |   |    |     |   |    |      |   |     |          |      |          |          |        |   |   |   |   |   |   |
| See                notes to condensed consolidated financial statements. |   |                        |      |   |       |   |    |     |   |    |      |   |     |

----

*Accounting for Uncertainty in Income Taxes- an Interpretation of FASB      Statement No. 109, *

----

| 3.   | Comprehensive                Income |
|----------------|-------------------------------------|

|                                          |   |                              |    |   |                            |   |    |   |   |   |      |   |
|-----------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------|--------|---------|--------|--------|--------|-----------|--------|
|                                          |   | Three                Months Ended |    |   | Six                Months Ended |   |
|                                          |   | September                30,      |    |   | September                30,    |   |
|                                          |   | 2007                              |    |   | 2006                            |   |    | 2007   |   |   | 2006      |   |
|                                          |   |                              |    |   |                            |   |    |   |   |   |      |   |
| Net                earnings                   |   | $                                 | 537,650 |   |                            | $      | 371,067 |   |   | $      | 1,164,018 |   |   | $ | 1,097,862 |   |
|                                          |   |                              |    |   |                            |   |    |   |   |   |      |   |   |   |   |   |
| Other                Comprehensive Income:    |   |                              |    |   |                            |   |    |   |   |   |      |   |   |   |   |   |
| Unrealized                gain on securities, |   |                              |    |   |                            |   |    |   |   |   |      |   |   |   |   |   |
|   net                of tax         |   |                              | 9,372   |   |                            |   | 30,359  |   |   |   | 18,744    |   |   |   | 18,545 |   |
| Total                Comprehensive Income     |   | $                                 | 547,022 |   |                            | $      | 401,426 |   |   | $      | 1,182,762 |   |   | $ | 1,116,407 |   |

|                                                    |   | Three                Months Ended |      |   | Six                Months Ended |   |
|---------------------------------------------------------|--------|-----------------------------------|-----------|--------|---------------------------------|--------|
|                                                    |   | September                30,      |      |   | September                30,    |   |
|                                                    |   | 2007                              |      |   | 2006                            |   |   | 2007 |   |   | 2006 |   |
|                                                    |   |                              |      |   |                            |   |   |   |   |   |   |   |
| Net                earnings                             |   | $                                 | 537,650   |   |                            | $      | 371,067 |   |   | $ | 1,164,018 |   |   | $ | 1,097,862 |   |
|                                                    |   |                              |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted Net Earnings Per Share |   | $                                 | 0.22      |   |                            | $      | 0.14 |   |   | $ | 0.47 |   |   | $ | 0.41 |   |
|                                                    |   |                              |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                Average Shares Outstanding:     |   |                              |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted                        |   |                              | 2,432,392 |   |                            |   | 2,671,293 |   |   |   | 2,446,949 |   |   |   | 2,671,293 |   |

|                                           |   | September                30, 2007 |      |   | March                31, 2007 |   |
|------------------------------------------------|--------|-----------------------------------|-----------|--------|-------------------------------|--------|
| Aircraft                parts and supplies     |   | $                                 | 501,148   |   |                          | $      | 485,209 |   |
| Ground                equipment manufacturing: |   |                              |      |   |                          |   |   |   |
| Raw                materials                   |   |                              | 7,164,551 |   |                          |   | 6,250,813 |   |
| Work                in process                 |   |                              | 1,362,191 |   |                          |   | 1,648,896 |   |
| Finished                goods                  |   |                              | 867,606   |   |                          |   | 364,688 |   |
| Total                inventories               |   |                              | 9,895,496 |   |                          |   | 8,749,606 |   |
| Reserves                                       |   |                              | (723,894  | )      |                          |   | (663,851 | ) |
|                                           |   |                              |      |   |                          |   |   |   |
| Total,                net of reserves          |   | $                                 | 9,171,602 |   |                          | $      | 8,085,755 |   |

----

*Share-Based Payment*

*Fair Value      Measurements*

*The Fair Value Option for      Financial Assets and Liabilities *

----

|                                                                |   | Three                Months Ended September 30, |       |   | Six                Months Ended September 30, |   |
|---------------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                                |   | 2007                                            |       |   | 2006                                          |   |   | 2007 |   |   | 2006 |   |
| Operating                Revenues:                                  |   |                                            |       |   |                                          |   |   |   |   |   |   |   |
| Overnight                Air Cargo                                  |   | $                                               | 9,503,715  |   |                                          | $      | 8,646,307 |   |   | $ | 18,016,166 |   |   | $ | 17,222,259 |   |
| Ground                Equipment:                                    |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
|    Domestic                                          |   |                                            | 7,492,042  |   |                                          |   | 5,509,884 |   |   |   | 14,677,058 |   |   |   | 12,980,241 |   |
|    International                                     |   |                                            | 416,060    |   |                                          |   | 564,914 |   |   |   | 514,560 |   |   |   | 602,414 |   |
| Total                Ground Equipment                               |   |                                            | 7,908,102  |   |                                          |   | 6,074,798 |   |   |   | 15,191,618 |   |   |   | 13,582,655 |   |
| Total                                                               |   | $                                               | 17,411,817 |   |                                          | $      | 14,721,105 |   |   | $ | 33,207,784 |   |   | $ | 30,804,914 |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Income (Loss):                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Overnight                Air Cargo                                  |   | $                                               | 512,889    |   |                                          | $      | 360,102 |   |   | $ | 858,954 |   |   | $ | 822,640 |   |
| Ground                Equipment                                     |   |                                            | 841,481    |   |                                          |   | 643,578 |   |   |   | 2,054,267 |   |   |   | 2,001,333 |   |
| Corporate  (1)                                            |   |                                            | (506,141   | )      |                                          |   | (451,245 | ) |   |   | (1,097,396 | ) |   |   | (1,166,923 | ) |
| Total                                                               |   | $                                               | 848,229    |   |                                          | $      | 552,435 |   |   | $ | 1,815,825 |   |   | $ | 1,657,050 |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and Amortization:                       |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |
| Overnight                Air Cargo                                  |   | $                                               | 106,270    |   |                                          | $      | 123,395 |   |   | $ | 216,328 |   |   | $ | 249,352 |   |
| Ground                Equipment                                     |   |                                            | 15,024     |   |                                          |   | 9,773 |   |   |   | 27,285 |   |   |   | 48,813 |   |
| Corporate                                                           |   |                                            | 3,754      |   |                                          |   | 14,794 |   |   |   | 5,309 |   |   |   | 26,631 |   |
| Total                                                               |   | $                                               | 125,048    |   |                                          | $      | 147,962 |   |   | $ | 248,922 |   |   | $ | 324,796 |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Expenditures, net:                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Overnight                Air Cargo                                  |   | $                                               | 31,807     |   |                                          | $      | 26,775 |   |   | $ | 47,630 |   |   | $ | 31,775 |   |
| Ground                Equipment                                     |   |                                            | 72,302     |   |                                          |   | - |   |   |   | 110,741 |   |   |   | - |   |
| Corporate                                                           |   |                                            | 19,218     |   |                                          |   | 6,329 |   |   |   | 66,237 |   |   |   | 35,361 |   |
| Total                                                               |   | $                                               | 123,327    |   |                                          | $      | 33,104 |   |   | $ | 224,608 |   |   | $ | 67,136 |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | As                of                            |       |   |                                          |   |   |   |   |   |   |
|                                                                |   | September                30, 2007               |       |   | March                31, 2007                 |   |   |   |   |   |   |   |   |   |
| Identifiable                Assets:                                 |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Overnight                Air Cargo                                  |   | $                                               | 4,609,968  |   |                                          | $      | 5,823,455 |   |   |   |   |   |   |   |   |   |
| Ground                Equipment                                     |   |                                            | 16,014,373 |   |                                          |   | 13,247,048 |   |   |   |   |   |   |   |   |   |
| Corporate                                                           |   |                                            | 4,820,461  |   |                                          |   | 5,544,481 |   |   |   |   |   |   |   |   |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                               |   | $                                               | 25,444,802 |   |                                          | $      | 24,614,984 |   |   |   |   |   |   |   |   |   |
|                                                                |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| (1)                Includes income from inter-segment transactions. |   |                                            |       |   |                                          |   |   |   |   |

----

*U.S. Airways vs. Elliott Equipment Company, et al*
*Emerson vs. Elliott Equipment      Company, et al*
*City of Philadelphia v. Elliott      Equipment Company, et al*

----

*Global Ground Support, LLC v. Sautter      Crane Rental, Inc.*

----

|                                        |   | Three                Months Ended |       |   | Six                Months Ended |   |
|---------------------------------------------|--------|-----------------------------------|------------|--------|---------------------------------|--------|
|                                        |   | September                30,      |       |   | September                30,    |   |
|                                        |   | 2007                              |       |   | 2006                            |   |   | 2007 |   |   | 2006 |   |
|                                        |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Overnight                Air Cargo Segment: |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FedEx                                       |   | $                                 | 9,503,715  |   |                            |   | 55 | % |   | $ | 8,646,307 |   |   |   | 59 | % |   | $ | 18,016,166 |   |   |   | 54 | % |   | $ | 17,222,259 |   |   |   | 56 | % |
|                                        |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ground                Equipment Segment:    |   |                              |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Military                                    |   |                              | 898,866    |   |                            |   | 5 | % |   |   | 1,258,106 |   |   |   | 8 | % |   |   | 6,627,822 |   |   |   | 20 | % |   |   | 6,754,498 |   |   |   | 22 | % |
| Commercial                - Domestic        |   |                              | 6,593,176  |   |                            |   | 38 | % |   |   | 4,251,778 |   |   |   | 29 | % |   |   | 8,049,236 |   |   |   | 24 | % |   |   | 6,225,743 |   |   |   | 20 | % |
| Commercial                - International   |   |                              | 416,060    |   |                            |   | 2 | % |   |   | 564,914 |   |   |   | 4 | % |   |   | 514,560 |   |   |   | 2 | % |   |   | 602,414 |   |   |   | 2 | % |
|                                        |   |                              | 7,908,102  |   |                            |   | 45 | % |   |   | 6,074,798 |   |   |   | 41 | % |   |   | 15,191,618 |   |   |   | 46 | % |   |   | 13,582,655 |   |   |   | 44 | % |
|                                        |   | $                                 | 17,411,817 |   |                            |   | 100 | % |   | $ | 14,721,105 |   |   |   | 100 | % |   | $ | 33,207,784 |   |   |   | 100 | % |   | $ | 30,804,914 |   |   |   | 100 | % |

----

*Global Ground Support, LLC v. Sautter Crane      Rental, Inc.*

----

**Second      Quarter 2008 Compared to Second Quarter 2007**

----

**First      Six Months of 2008 Compared to First Six Months of 2007**

----

----

*Fair Value      Measurements*

----

*The Fair Value Option for      Financial Assets and Liabilities *

----

|                                |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |
|-------------------------------------|--------|-------------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
| Period                              |   | (a)                Total Number of Shares |   |   | (b)                Average Price Paid per Share purchased |   |   | (c)                Total Number of Shares Purchased as Part of Publicly Announced                Plan |   |   | (d)                Approximate Dollar Value of Shares that May Yet Be Purchased Under                the                Plan |   |
| July                1, 2007 to      |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |
| July                31, 2007        |   |                                      | -      |   |                                                      | $      | -      |                                                                                                  |   |   | -                                                                                                                            |   |   | $ | 166,000 |   |
|                                |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |   |   |   |   |
| August                1, 2007 to    |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |   |   |   |   |
| August                31, 2007      |   |                                      | 18,800 |   |                                                      |   | 8.82   |                                                                                                  |   |   | 18,800                                                                                                                       |   |   |   | - |   |
|                                |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |   |   |   |   |
| September                1, 2007 to |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |   |   |   |   |
| September                30, 2007   |   |                                      | -      |   |                                                      |   | -      |                                                                                                  |   |   | -                                                                                                                            |   |   |   | - |   |
|                                |   |                                      |   |   |                                                      |   |   |                                                                                                  |   |   |                                                                                                                         |   |   |   |   |   |
| Total                               |   |                                      | 18,800 |   |                                                      | $      | 8.82   |                                                                                                  |   |   | 18,800                                                                                                                       |   |   | $ | - |   |

----

| Nominee                                 |   | Shares                Voted "For" |      |   | Shares                Voted "Withheld" |   |
|-----------------------------------------|--------|-----------------------------------|-----------|--------|----------------------------------------|--------|
|                                    |   |                              |      |   |                                   |   |
|                                    |   |                              |      |   |                                   |   |
| Walter                Clark             |   |                              | 1,685,432 |   |                                   |   | 284,925 |   |
| John                Parry               |   |                              | 1,656,388 |   |                                   |   | 313,969 |   |
| William                H. Simpson       |   |                              | 1,684,149 |   |                                   |   | 286,208 |   |
| Claude                S. Abernethy, Jr. |   |                              | 1,656,463 |   |                                   |   | 313,894 |   |
| Sam                Chesnutt             |   |                              | 1,684,149 |   |                                   |   | 286,208 |   |
| Allison                T. Clark         |   |                              | 1,683,779 |   |                                   |   | 286,578 |   |
| George                C. Prill          |   |                              | 1,684,049 |   |                                   |   | 286,308 |   |
| Dennis                A. Wicker         |   |                              | 1,739,621 |   |                                   |   | 230,736 |   |
| J.                Bradley Wilson        |   |                              | 1,767,257 |   |                                   |   | 203,100 |   |
|                                    |   |                              |      |   |                                   |   |   |   |

|                                       Votes Cast For |                                     Votes Cast Against |                                     Votes Cast to Abstain |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                               | 1,727,075                                                                                                                                                  |                                                                                                                                                          | 242,820 |   | 460 |   |

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|   | (a)  Exhibits |
|--------|-------------------------|

| 3.1   | Restated                Certificate of Incorporation, incorporated by reference to                Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the                period ended September 30, 2001 |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | By-laws                of the Company, as amended, incorporated by reference to Exhibit 3.2                of the Company’s Annual Report on Form 10-K for the fiscal year ended                March 31, 1996 |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1   | Specimen                Common Stock Certificate, incorporated by reference to Exhibit 4.1 of                the Company’s Annual Report on Form 10-K for the fiscal year ended                March 31, 1994 |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1   |   Certification                of Walter Clark |
|------------------|----------------------------------------------------------|

| 31.2   |   Certification                of John Parry |
|------------------|--------------------------------------------------------|

| 32.1   |   Section                1350 Certification |
|------------------|-------------------------------------------------------|

----

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