----

----

| INDIANA                                        | 20-2803889                            |
|------------------------------------------------|---------------------------------------|
| (State                or other jurisdiction of | (IRS                Employer          |
| incorporation                or organization)  | Identification                Number) |

| 6402                Corporate Drive                     | 46278                     |
|---------------------------------------------------------|---------------------------|
| Indianapolis,                IN                         | (Zip                Code) |
| (Address                of principal executive offices) |                           |

----

----

----

OR

|                                                                           | Page                                                                                                                                   |
|--------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| PART  I.    Financial                Information |                                                                                                                                   |
|                                                                           | ITEM                1.  Financial Statements                                                                                 |   |
|                                                                           |                                                                                                                                   | Consolidated                Balance Sheets as of November 30, 2007 (unaudited) and August 31,                2007 | 3 |
|                                                                           |                                                                                                                                   | Consolidated                Statements of Operations for the three month periods ended November                30,                2007 and 2006 (unaudited) | 5 |
|                                                                           |                                                                                                                                   | Consolidated                Statement of Changes in Shareholders’ Equity                for the three month period ended November 30, 2007                (unaudited) | 6 |
|                                                                           |                                                                                                                                   | Consolidated                Statements of Cash Flows for the three month periods ended November                30,                2007 and 2006 (unaudited) | 7 |
|                                                                           |                                                                                                                                   | Notes                to the Unaudited Interim Consolidated Financial                Statements | 9 |
|                                                                           | ITEM                2.  Management's Discussion and Analysis of Financial Condition                and Results of Operations | 36 |
|                                                                           | ITEM                3.  Quantitative and Qualitative Disclosures About Market                Risk                            | 45 |
|                                                                           | ITEM                4.  Controls and Procedures                                                                              | 46 |
| PART                II.    Other Information               |                                                                                                                                   |
|                                                                           | ITEM                1.    Legal                Proceedings                                                         | 46 |
|                                                                           | ITEM                1A. Risk Factors                                                                                                   | 46 |
|                                                                           | ITEM                2.    Unregistered Sales of Equity Securities and Use                     of Proceeds          | 46 |
|                                                                           | ITEM                3.    Defaults Upon Senior                Securities                                           | 46 |
|                                                                           | ITEM                4.    Submission of Matters to a Vote of Security                Holders                       | 46 |
|                                                                           | ITEM                5.    Other Information                                                                        | 46 |
|                                                                           | ITEM                6.    Exhibits                                                                                 | 46 |
| Signatures                                                                     | 47                                                                                                                                     |

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Index

AR

OR

|                                                                                                               |   | November 30,2007(Unaudited) |   |   | August 31,2007(Audited) |   |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|
|                                                                                                               |   |                             |   |   |                         |   |
| ASSETS                                                                                                             |   |                             |   |   |                         |   |
| CURRENT                ASSETS                                                                                      |   |                             |   |   |                         |   |
| Cash                and equivalents                                                                                |   | $                                | 5,893  |   |                         | $      | 9,830 |   |
| Restricted                cash (Note 1)                                                                            |   |                             | 5,205  |   |                         |   | 5,091 |   |
| Accounts                receivable, net (Note 4)                                                                   |   |                             | 20,355 |   |                         |   | 21,157 |   |
| Costs                and estimated earnings in excess of billings on uncompleted contracts                (Note 5) |   |                             | 3,332  |   |                         |   | 1,279 |   |
| Inventory,                net (Note 6)                                                                             |   |                             | 6,016  |   |                         |   | 6,656 |   |
| Deferred                tax asset (Note 11)                                                                        |   |                             | 1,535  |   |                         |   | 1,535 |   |
| Prepaid                expenses and other current assets                                                           |   |                             | 2,147  |   |                         |   | 2,840 |   |
| Total                Current Assets                                                                                |   |                             | 44,483 |   |                         |   | 48,388 |   |
|                                                                                                               |   |                             |   |   |                         |   |   |   |
| OTHER                ASSETS                                                                                        |   |                             |   |   |                         |   |   |   |
| Property,                plant & equipment, net (Note 7)                                                       |   |                             | 11,740 |   |                         |   | 12,238 |   |
| Long-term                accounts receivable (Note 4)                                                              |   |                             | 770    |   |                         |   | 770 |   |
| Goodwill                (Note 8)                                                                                   |   |                             | 18,461 |   |                         |   | 18,461 |   |
| Other                intangible assets, net (Note 8)                                                               |   |                             | 7,142  |   |                         |   | 7,450 |   |
| Other                long-term assets                                                                              |   |                             | 1,107  |   |                         |   | 1,048 |   |
| Total                Other Assets                                                                                  |   |                             | 39,220 |   |                         |   | 39,967 |   |
|                                                                                                               |   |                             |   |   |                         |   |   |   |
| TOTAL                ASSETS                                                                                        |   | $                                | 83,703 |   |                         | $      | 88,355 |   |

----

Index

|                                                                                                                                                                                                        |   | November 30,2007(Unaudited) |    |   | August 31,2007(Audited) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------------|--------|
|                                                                                                                                                                                                        |   |                             |    |   |                         |   |
| LIABILITIES                AND SHAREHOLDERS' EQUITY                                                                                                                                                         |   |                             |    |   |                         |   |
| CURRENT                LIABILITIES                                                                                                                                                                          |   |                             |    |   |                         |   |
| Line                of credit (Note 9)                                                                                                                                                                      |   | $                                | 14,695  |   |                         | $      | 15,000 |   |
| Current                maturities of long-term debt (Note 9)                                                                                                                                                |   |                             | 1,682   |   |                         |   | 2,249 |   |
| Current                maturities of convertible term note (Note 9)                                                                                                                                         |   |                             | 2,045   |   |                         |   | 2,727 |   |
| Variable                interest entity line of credit (Note 9)                                                                                                                                             |   |                             | 2,200   |   |                         |   | 2,200 |   |
| Variable                interest entity current maturities of long-term debt (Note                9)                                                                                                        |   |                             | 365     |   |                         |   | 503 |   |
| Accounts                payable                                                                                                                                                                             |   |                             | 5,701   |   |                         |   | 9,168 |   |
| Health                and workers' compensation reserves                                                                                                                                                    |   |                             | 4,911   |   |                         |   | 5,128 |   |
| Accrued                expenses                                                                                                                                                                             |   |                             | 9,568   |   |                         |   | 9,239 |   |
| Billings                in excess of costs and estimated earnings on uncompleted contracts                (Note                5)                                                                           |   |                             | 1,757   |   |                         |   | 1,178 |   |
| Other                current liabilities                                                                                                                                                                    |   |                             | 432     |   |                         |   | 725 |   |
| Total                Current Liabilities                                                                                                                                                                    |   |                             | 43,356  |   |                         |   | 48,117 |   |
|                                                                                                                                                                                                        |   |                             |    |   |                         |   |   |   |
| LONG-TERM                LIABILITIES                                                                                                                                                                        |   |                             |    |   |                         |   |   |   |
| Long-term                debt, less current maturities (Note 9)                                                                                                                                             |   |                             | 16,299  |   |                         |   | 16,375 |   |
| Convertible                term note (Note 9)                                                                                                                                                               |   |                             | 3,405   |   |                         |   | 2,950 |   |
| Line                of credit term note - majority shareholder (Note 9)                                                                                                                                     |   |                             | 1,000   |   |                         |   | 1,000 |   |
| Variable                interest entity long-term debt, less current maturities (Note                9)                                                                                                     |   |                             | 4,239   |   |                         |   | 4,559 |   |
| Other                long-term liabilities                                                                                                                                                                  |   |                             | 215     |   |                         |   | 215 |   |
| Total                Long-Term Liabilities                                                                                                                                                                  |   |                             | 25,158  |   |                         |   | 25,099 |   |
|                                                                                                                                                                                                        |   |                             |    |   |                         |   |   |   |
| Total                Liabilities                                                                                                                                                                            |   |                             | 68,514  |   |                         |   | 73,216 |   |
|                                                                                                                                                                                                        |   |                             |    |   |                         |   |   |   |
| MINORITY                INTEREST IN VARIABLE INTEREST ENTITY (NOTE 2)                                                                                                                                       |   |                             | 351     |   |                         |   | 236 |   |
| TEMPORARY                EQUITY (NOTE 13)                                                                                                                                                                   |   |                             | 814     |   |                         |   | 814 |   |
|                                                                                                                                                                                                        |   |                             |    |   |                         |   |   |   |
| SHAREHOLDERS'                EQUITY (NOTE 13)                                                                                                                                                               |   |                             |    |   |                         |   |   |   |
| Common                stock, $0.10 par value; 150,000,000 authorized; 11,391,823 issued                and                outstanding at November 30, 2007 and August 31, 2007,                respectively |   |                             | 1,117   |   |                         |   | 1,117 |   |
| Preferred                stock, $0.10 par value; 1,000,000 authorized; 66,180 issued and                outstanding at November 30, 2007 and August 31, 2007,                respectively                   |   |                             | 6,618   |   |                         |   | 6,618 |   |
| Additional                paid-in capital and warrants outstanding                                                                                                                                          |   |                             | 19,317  |   |                         |   | 19,317 |   |
| Accumulated                deficit                                                                                                                                                                          |   |                             | (12,290 | )      |                         |   | (12,300 | ) |
| Accumulated                other comprehensive income                                                                                                                                                       |   |                             | 300     |   |                         |   | 260 |   |
|                                                                                                                                                                                                        |   |                             | 15,062  |   |                         |   | 15,012 |   |
| Less:  Treasury                stock, 384,500 shares of common stock outstanding at November 30,                2007 and                August 31, 2007, respectively                             |   |                             | (1,038  | )      |                         |   | (923 | ) |
| Total                Shareholders' Equity                                                                                                                                                                   |   |                             | 14,024  |   |                         |   | 14,089 |   |
|                                                                                                                                                                                                        |   |                             |    |   |                         |   |   |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                   |   | $                                | 83,703  |   |                         | $      | 88,355 |   |

----

Index

OR

|                                                                       |   | Three                Month Period Ended |       |
|----------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                       |   | November                30,2007         |       |   | November                30,2006 |   |
| REVENUES                                                                   |   |                                    |       |   |   |   |
| Service                revenues                                            |   | $                                       | 22,455     |   |   | $ | 15,002 |   |
| Product                revenues                                            |   |                                    | 21,302     |   |   |   | 25,682 |   |
| TOTAL                REVENUES                                              |   |                                    | 43,757     |   |   |   | 40,684 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| COST                OF REVENUES                                            |   |                                    |       |   |   |   |   |   |
| Service                cost of revenues                                    |   |                                    | 17,315     |   |   |   | 11,235 |   |
| Product                cost of revenues                                    |   |                                    | 17,532     |   |   |   | 20,675 |   |
| TOTAL                COST OF REVENUES                                      |   |                                    | 34,847     |   |   |   | 31,910 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| GROSS                PROFIT                                                |   |                                    | 8,910      |   |   |   | 8,774 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| OPERATING                EXPENSES                                          |   |                                    |       |   |   |   |   |   |
| Selling,                general and administrative expenses                |   |                                    | 6,965      |   |   |   | 6,431 |   |
| Depreciation                and amortization                               |   |                                    | 691        |   |   |   | 718 |   |
| Total                Operating Expenses                                    |   |                                    | 7,656      |   |   |   | 7,149 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| OPERATING                INCOME                                            |   |                                    | 1,254      |   |   |   | 1,625 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| OTHER                INCOME (EXPENSE)                                      |   |                                    |       |   |   |   |   |   |
| Interest                income                                             |   |                                    | 79         |   |   |   | 91 |   |
| Interest                expense                                            |   |                                    | (923       | ) |   |   | (847 | ) |
| Loss                on disposal of assets                                  |   |                                    | (46        | ) |   |   | - |   |
| Gain                on investments in marketable securities, net (Note 1)  |   |                                    | -          |   |   |   | 17 |   |
| Exchange                rate gain (loss)                                   |   |                                    | 19         |   |   |   | (1 | ) |
| Other                income                                                |   |                                    | 5          |   |   |   | 22 |   |
| Total                Other Expense                                         |   |                                    | (866       | ) |   |   | (718 | ) |
|                                                                       |   |                                    |       |   |   |   |   |   |
| INCOME                BEFORE MINORITY INTEREST IN VARIABLE INTEREST ENTITY |   |                                    | 388        |   |   |   | 907 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| Minority                Interest in Variable Interest Entity (Note 2)      |   |                                    | 195        |   |   |   | 40 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| INCOME                BEFORE PROVISION FOR INCOME TAXES                    |   |                                    | 193        |   |   |   | 867 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| Provision                for income taxes (Note 11)                        |   |                                    | 59         |   |   |   | 17 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| NET                INCOME                                                  |   |                                    | 134        |   |   |   | 850 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| Preferred                stock dividends                                   |   |                                    | 124        |   |   |   | 124 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| NET                INCOME AVAILABLE TO COMMON SHAREHOLDERS                 |   | $                                       | 10         |   |   | $ | 726 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| BASIC                INCOME PER COMMON SHARE                               |   | $                                       | 0.00       |   |   | $ | 0.07 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| Basic                weighted average shares outstanding                   |   |                                    | 11,391,823 |   |   |   | 10,524,722 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| DILUTED                INCOME PER COMMON SHARE                             |   | $                                       | 0.00       |   |   | $ | 0.06 |   |
|                                                                       |   |                                    |       |   |   |   |   |   |
| Diluted                weighted average shares outstanding                 |   |                                    | 12,768,981 |   |   |   | 12,242,284 |   |

----

Index

OR

|                                                                                                                          |   | CommonStock |   |   | TreasuryStock |   |   | PreferredStock |   |   | AdditionalPaid-in Capitaland WarrantsOutstanding |   |   | AccumulatedDeficit |   |   | AccumulatedOtherComprehensiveIncome |   |    | Total Shareholders' Equity |   |   | ComprehensiveIncome |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|---------------|--------|--------|----------------|--------|--------|------------------------------------------------------------|--------|--------|--------------------|--------|--------|-------------------------------------|--------|---------|--------------------------------------|--------|--------|---------------------|--------|
|                                                                                                                          |   |        |   |   |          |   |   |           |   |   |                                                       |   |   |               |   |   |                                |   |    |                                 |   |   |                |   |
| BALANCE                AT AUGUST 31, 2007                                                                                |   | $           | 1,117  |   |          | $      | (923   | )              |   | $      | 6,618                                                      |   |   | $                  | 19,317 |   |                                | $      | (12,300 | )                                    |   | $      | 260                 |   |   | $ | 14,089 |   |   |   |   |
| Net                income                                                                                                     |   |        | -      |   |          |   | -      |           |   |   | -                                                          |   |   |               | -      |   |                                |   | 134     |                                 |   |   | -                   |   |   |   | 134 |   |   |   | 134 |   |
| Preferred                Stock Dividends                                                                                      |   |        | -      |   |          |   | -      |           |   |   | -                                                          |   |   |               | -      |   |                                |   | (124    | )                                    |   |   | -                   |   |   |   | (124 | ) |   |   | - |   |
| Foreign                currency translation adjustments, net of tax                                                           |   |        | -      |   |          |   | -      |           |   |   | -                                                          |   |   |               | -      |   |                                |   | -       |                                 |   |   | 40                  |   |   |   | 40 |   |   |   | 40 |   |
| Unrealized                gains on investments, net of tax                                                                    |   |        | -      |   |          |   | (115   | )              |   |   | -                                                          |   |   |               | -      |   |                                |   | -       |                                 |   |   | -                   |   |   |   | (115 | ) |   |   | (115 | ) |
| Reclassification                adjustments for realized gains & losses included in net income, net of                tax |   |        | -      |   |          |   | -      |           |   |   | -                                                          |   |   |               | -      |   |                                |   | -       |                                 |   |   | -                   |   |   |   | - |   |   |   | - |   |
|                                                                                                                          |   |        |   |   |          |   |   |           |   |   |                                                       |   |   |               |   |   |                                |   |    |                                 |   |   |                |   |   |   |   |   |   |   |   |   |
| Total                comprehensive income                                                                                     |   |        | -      |   |          |   | -      |           |   |   | -                                                          |   |   |               | -      |   |                                |   | -       |                                 |   |   | -                   |   |   |   | - |   |   | $ | 59 |   |
|                                                                                                                          |   |        |   |   |          |   |   |           |   |   |                                                       |   |   |               |   |   |                                |   |    |                                 |   |   |                |   |   |   |   |   |   |   |   |   |
| BALANCE                AT NOVEMBER 30, 2007                                                                              |   | $           | 1,117  |   |          | $      | (1,038 | )              |   | $      | 6,618                                                      |   |   | $                  | 19,317 |   |                                | $      | (12,290 | )                                    |   | $      | 300                 |   |   | $ | 14,024 |   |   |   |   |   |

----

Index

OR

|                                                                                                                      |   | Three Month Period Ended |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                                      |   | November 30,2007                   |   |   | November 30,2006 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                                       |   |                                    |   |   |   |   |
| Net                Income                                                                                                 |   | $                                       | 134    |   |   | $ | 850 |   |
| Adjustments                to reconcile net income to net cash provided by (used in) operating                activities: |   |                                    |   |   |   |   |   |   |
| Depreciation                and amortization                                                                              |   |                                    | 897    |   |   |   | 718 |   |
| Provision                for losses on accounts receivable                                                                |   |                                    | (216   | ) |   |   | (21 | ) |
| Gain                on sale of investments                                                                                |   |                                    | -      |   |   |   | (17 | ) |
| Loss                on disposal of assets                                                                                 |   |                                    | 46     |   |   |   | - |   |
| Minority                interest in variable interest entity income                                                       |   |                                    | 195    |   |   |   | 40 |   |
| Changes                in certain operating assets and liabilities:                                                       |   |                                    |   |   |   |   |   |   |
| Restricted                cash                                                                                            |   |                                    | (114   | ) |   |   | - |   |
| Accounts                receivable                                                                                        |   |                                    | 1,018  |   |   |   | (433 | ) |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts                 |   |                                    | (2,053 | ) |   |   | 240 |   |
| Inventory,                net                                                                                             |   |                                    | 640    |   |   |   | 182 |   |
| Prepaid                assets and other current assets                                                                    |   |                                    | 693    |   |   |   | 400 |   |
| Other                long-term assets                                                                                     |   |                                    | (48    | ) |   |   | 67 |   |
| Accounts                payable                                                                                           |   |                                    | (3,467 | ) |   |   | (3,244 | ) |
| Health                and workers' compensation reserves                                                                  |   |                                    | (217   | ) |   |   | 338 |   |
| Accrued                expenses and other current liabilities                                                             |   |                                    | 36     |   |   |   | 284 |   |
| Billings                in excess of costs and estimated earnings on uncompleted                contracts                 |   |                                    | 579    |   |   |   | 715 |   |
| Net                Cash Provided by (Used in) Operating Activities                                                        |   |                                    | (1,877 | ) |   |   | 119 |   |
|                                                                                                                      |   |                                    |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                                       |   |                                    |   |   |   |   |   |   |
| Capital                expenditures                                                                                       |   |                                    | (465   | ) |   |   | (330 | ) |
| Variable                interest entity proceeds from sale of assets                                                      |   |                                    | 430    |   |   |   | - |   |
| Purchases                of marketable securities                                                                         |   |                                    | -      |   |   |   | 11 |   |
| Net                Cash Used in Investing Activities                                                                      |   |                                    | (35    | ) |   |   | (319 | ) |
|                                                                                                                      |   |                                    |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                                       |   |                                    |   |   |   |   |   |   |
| Net                borrowings (payments) under line of credit                                                             |   |                                    | (305   | ) |   |   | 4,395 |   |
| Payments                on long-term debt                                                                                 |   |                                    | (643   | ) |   |   | (366 | ) |
| Variable                interest entity payments on long-term debt                                                        |   |                                    | (458   | ) |   |   | (102 | ) |
| Debt                issuance costs                                                                                        |   |                                    | (113   | ) |   |   | - |   |
| Payments                from convertible debentures                                                                       |   |                                    | (227   | ) |   |   | (227 | ) |
| Dividends                on preferred stock                                                                               |   |                                    | (124   | ) |   |   | (124 | ) |
| Proceeds                from variable interest entity member contributions                                                |   |                                    | 70     |   |   |   | 85 |   |
| Distributions                to variable interest entity members                                                          |   |                                    | (265   | ) |   |   | - |   |
| Net                Cash Provided by (Used in) Financing Activities                                                        |   |                                    | (2,065 | ) |   |   | 3,661 |   |
|                                                                                                                      |   |                                    |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash                                                                    |   |                                    | 40     |   |   |   | 11 |   |
|                                                                                                                      |   |                                    |   |   |   |   |   |   |
| NET                INCREASE (DECREASE) IN CASH AND EQUIVALENTS                                                            |   |                                    | (3,937 | ) |   |   | 3,472 |   |
|                                                                                                                      |   |                                    |   |   |   |   |   |   |
| CASH                AND EQUIVALENTS                                                                                       |   |                                    |   |   |   |   |   |   |
| Beginning                of Period                                                                                        |   |                                    | 9,830  |   |   |   | 3,632 |   |
|                                                                                                                      |   |                                    |   |   |   |   |   |   |
| End                of Period                                                                                              |   | $                                       | 5,893  |   |   | $ | 7,104 |   |

----

Index

|                                                                    |   | Three Month Period Ended |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                    |   | November 30,2007                   |   |   | November 30,2006 |   |
|                                                                    |
| SUPPLEMENTAL                DISCLOSURES                                 |   |                                    |   |   |   |   |
| Interest                paid                                            |   | $                                       | 917    |   |   | $ | 561 |   |
|                                                                    |   |                                    |   |   |   |   |   |   |
| Income                taxes paid                                        |   | $                                       | 27     |   |   | $ | 9 |   |
|                                                                    |   |                                    |   |   |   |   |   |   |
| Unrealized                net gain on marketable equity securities      |   | $                                       | -      |   |   | $ | 24 |   |
|                                                                    |   |                                    |   |   |   |   |   |   |
| Non-cash                investing and financing activities:             |   |                                    |   |   |   |   |   |   |
| Issuance                of preferred stock for debt extinguishment      |   | $                                       | -      |   |   | $ | 6,618 |   |
| Issuance                of warrants in connection with loan refinancing |   |                                    | -      |   |   |   | 266 |   |
|                                                                    |   | $                                       | -      |   |   | $ | 6,884 |   |
|                                                                    |   |                                    |   |   |   |   |   |   |
| Consolidation                of Variable Interest Entity (Note 2)       |   |                                    |   |   |   |   |   |   |
| Cash                                                                    |   | $                                       | 20     |   |   | $ | 23 |   |
| Prepaid                expenses and other current assets                |   |                                    | -      |   |   |   | 5 |   |
| Property,                plant and equipment                            |   |                                    | 6,144  |   |   |   | 6,773 |   |
| Marketable                equity securities                             |   |                                    | 1,038  |   |   |   | 1,615 |   |
| Other                long-term assets                                   |   |                                    | 2      |   |   |   | 5 |   |
| Total                Assets                                             |   | $                                       | 7,204  |   |   | $ | 8,421 |   |
|                                                                    |   |                                    |   |   |   |   |   |   |
| Line                of credit                                           |   | $                                       | 2,200  |   |   | $ | 2,200 |   |
| Current                maturities of long-term debt                     |   |                                    | 365    |   |   |   | 503 |   |
| Accrued                expenses                                         |   |                                    | 49     |   |   |   | 43 |   |
| Other                current liabilities                                |   |                                    | -      |   |   |   | - |   |
| Long-term                debt                                           |   |                                    | 4,239  |   |   |   | 4,937 |   |
| Minority                interest                                        |   |                                    | 351    |   |   |   | 738 |   |
| Total                Liabilities and Minority Interest                  |   | $                                       | 7,204  |   |   | $ | 8,421 |   |

----

Index

OR

----

Index

----

Index

----

Index

----

Index

----

Index

|                                                     |   | November 30,2007(Unaudited) |   |   | August 31,2007(Audited) |   |
|----------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|
|                                                     |   |                             |   |   |                         |   |
| Assets                                                   |   |                             |   |   |                         |   |
| Cash                                                     |   | $                                | 20     |   |                         | $      | 79 |   |
| Marketable                equity securities              |   |                             | 1,038  |   |                         |   | 923 |   |
| Prepaid                expenses and other current assets |   |                             | -      |   |                         |   | 10 |   |
| Property,                plant and equipment             |   |                             | 6,144  |   |                         |   | 6,626 |   |
| Other                assets                              |   |                             | 2      |   |                         |   | 3 |   |
|                                                     |   | $                                | 7,204  |   |                         | $      | 7,641 |   |
|                                                     |   |                             |   |   |                         |   |   |   |
| Liabilities                and Members Equity            |   |                             |   |   |                         |   |   |   |
| Accounts                payable                          |   | $                                | 7      |   |                         | $      | - |   |
| Line                of credit                            |   |                             | 2,200  |   |                         |   | 2,200 |   |
| Current                maturities of long-term debt      |   |                             | 365    |   |                         |   | 503 |   |
| Accrued                expenses                          |   |                             | 42     |   |                         |   | 143 |   |
| Long-term                debt, net of current maturities |   |                             | 4,239  |   |                         |   | 4,559 |   |
|                                                     |   |                             | 6,853  |   |                         |   | 7,405 |   |
|                                                     |   |                             |   |   |                         |   |   |   |
| Members                equity                            |   |                             | 351    |   |                         |   | 236 |   |
|                                                     |   | $                                | 7,204  |   |                         | $      | 7,641 |   |

----

Index

|                                                       |   | Three Month Period Ended |   |
|------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                       |   | November 30, 2007(Unaudited)  |   |   | November 30, 2006(Unaudited) |   |
|                                                       |   |                                    |   |   |   |   |
| Net                revenue                                 |   | $                                       | 43,757 |   |   | $ | 47,979 |   |
|                                                       |   |                                    |   |   |   |   |   |   |
| Operating                income                            |   | $                                       | 1,254  |   |   | $ | 1,767 |   |
|                                                       |   |                                    |   |   |   |   |   |   |
| Net                income available to common shareholders |   | $                                       | 10     |   |   | $ | 888 |   |
|                                                       |   |                                    |   |   |   |   |   |   |
| Basic                income per common share               |   | $                                       | 0.00   |   |   | $ | 0.08 |   |
|                                                       |   |                                    |   |   |   |   |   |   |
| Diluted                income per common share             |   | $                                       | 0.00   |   |   | $ | 0.07 |   |

|                                                                  |   | November 30,2007(Unaudited) |   |   | August 31,2007(Audited) |   |
|-----------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|
|                                                                  |   |                             |   |   |                         |   |
| Accounts                receivable                                    |   | $                                | 14,431 |   |                         | $      | 17,572 |   |
| Contracts                receivable                                   |   |                             |   |   |                         |   |   |   |
| Progress                billing                                       |   |                             | 5,915  |   |                         |   | 4,576 |   |
| Retainages                                                            |   |                             | 1,023  |   |                         |   | 239 |   |
|                                                                  |   |                             | 21,369 |   |                         |   | 22,387 |   |
| Less                allowance for doubtful accounts and sales returns |   |                             | (1,014 | )      |                         |   | (1,230 | ) |
|                                                                  |   |                             |   |   |                         |   |   |   |
|                                                                  |   | $                                | 20,355 |   |                         | $      | 21,157 |   |
|                                                                  |   |                             |   |   |                         |   |   |   |
| Long-term                accounts receivable                          |   | $                                | 770    |   |                         | $      | 770 |   |

|                                                                          |   | November 30,2007(Unaudited) |    |   | August 31,2007(Audited) |   |
|-------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------------|--------|
|                                                                          |   |                             |    |   |                         |   |
| Costs                incurred on uncompleted contracts                        |   | $                                | 16,405  |   |                         | $      | 10,999 |   |
| Estimated                earnings recognized to date on uncompleted contracts |   |                             | 4,237   |   |                         |   | 2,511 |   |
|                                                                          |   |                             | 20,642  |   |                         |   | 13,510 |   |
| Less                billings on uncompleted contracts                         |   |                             | (19,067 | )      |                         |   | (13,409 | ) |
|                                                                          |   | $                                | 1,575   |   |                         | $      | 101 |   |

----

Index

|                                                                                                      |   | November 30,2007(Unaudited) |   |   | August 31,2007(Audited) |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|
|                                                                                                      |   |                             |   |   |                         |   |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts |   | $                                | 3,332  |   |                         | $      | 1,279 |   |
| Billings                in excess of costs and estimated earnings on uncompleted                contracts |   |                             | 1,757  |   |                         |   | 1,178 |   |
|                                                                                                      |   | $                                | 1,575  |   |                         | $      | 101 |   |

|                                  |   | November 30,2007(Unaudited) |   |   | August 31,2007(Audited) |   |
|---------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|
|                                  |   |                             |   |   |                         |   |
| Raw                materials          |   | $                                | 765    |   |                         | $      | 691 |   |
| Work-in-process                       |   |                             | 48     |   |                         |   | 29 |   |
| Finished                goods         |   |                             | 5,584  |   |                         |   | 6,317 |   |
|                                  |   |                             | 6,397  |   |                         |   | 7,037 |   |
|                                  |   |                             |   |   |                         |   |   |   |
| Less                inventory reserve |   |                             | (381   | )      |                         |   | (381 | ) |
|                                  |   | $                                | 6,016  |   |                         | $      | 6,656 |   |

----

Index

|                                         |   | November 30,2007(Unaudited) |    |   | August 31,2007(Audited) |   |
|----------------------------------------------|--------|----------------------------------|---------|--------|------------------------------|--------|
|                                         |   |                             |    |   |                         |   |
| Land                and building             |   | $                                | 8,970   |   |                         | $      | 9,440 |   |
| Machinery                and equipment       |   |                             | 7,024   |   |                         |   | 6,926 |   |
| Research                equipment            |   |                             | 368     |   |                         |   | 270 |   |
| Office                equipment              |   |                             | 5,753   |   |                         |   | 5,616 |   |
| Vehicles                                     |   |                             | 3,367   |   |                         |   | 3,299 |   |
| Leasehold                improvements        |   |                             | 373     |   |                         |   | 342 |   |
|                                         |   |                             | 25,855  |   |                         |   | 25,893 |   |
| Less                accumulated depreciation |   |                             | (14,115 | )      |                         |   | (13,655 | ) |
|                                         |   | $                                | 11,740  |   |                         | $      | 12,238 |   |

----

Index

|                                                   |   | November 30, 2007(Unaudited) |   |
|--------------------------------------------------------|--------|----------------------------------------|--------|
|                                                   |   | GrossCarryingAmount                    |   |   | AccumulatedAmortization |   |   | Net BookValue |   |   | Weighted AverageAmortizationPeriod (in years) |   |
|                                                   |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Customer                relationships                  |   | $                                      | 6,294  |   |   | $ | 1,351 |   |   | $ | 4,943 |   |   |   | 10 |   |
| Non-compete                                            |   |                                   | 200    |   |   |   | 63 |   |   |   | 137 |   |   |   | 5 |   |
| Non-compete                                            |   |                                   | 930    |   |   |   | 140 |   |   |   | 790 |   |   |   | 5 |   |
| Non-compete                                            |   |                                   | 1,485  |   |   |   | 803 |   |   |   | 682 |   |   |   | 5 |   |
| Total                                                  |   |                                   | 8,909  |   |   |   | 2,357 |   |   |   | 6,552 |   |   |   |   |   |
| Tradename                (not subject to amortization) |   |                                   | 590    |   |   |   | - |   |   |   | 590 |   |   |   |   |   |
| Total                                                  |   | $                                      | 9,499  |   |   | $ | 2,357 |   |   | $ | 7,142 |   |   |   |   |   |

|                                                   |   | August 31, 2007(Audited) |   |
|--------------------------------------------------------|--------|------------------------------------|--------|
|                                                   |   | GrossCarryingAmount                |   |   | AccumulatedAmortization |   |   | Net BookValue |   |   | Weighted AverageAmortizationPeriod (in years) |   |
|                                                   |   |                               |   |   |   |   |   |   |   |   |   |   |
| Customer                relationships                  |   | $                                  | 6,294  |   |   | $ | 1,169 |   |   | $ | 5,124 |   |   |   | 10 |   |
| Non-compete                                            |   |                               | 200    |   |   |   | 58 |   |   |   | 142 |   |   |   | 5 |   |
| Non-compete                                            |   |                               | 930    |   |   |   | 93 |   |   |   | 837 |   |   |   | 5 |   |
| Non-compete                                            |   |                               | 1,485  |   |   |   | 729 |   |   |   | 757 |   |   |   | 5 |   |
| Total                                                  |   |                               | 8,909  |   |   |   | 2,049 |   |   |   | 6,860 |   |   |   |   |   |
| Tradename                (not subject to amortization) |   |                               | 590    |   |   |   | - |   |   |   | 590 |   |   |   |   |   |
| Total                                                  |   | $                                  | 9,499  |   |   | $ | 2,049 |   |   | $ | 7,450 |   |   |   |   |   |

| 2008                               |   | $      | 924   |   |
|------------------------------------|--------|--------|-------|--------|
| 2009                               |   |   | 1,158 |   |
| 2010                               |   |   | 1,083 |   |
| 2011                               |   |   | 986   |   |
| 2012                               |   |   | 818   |   |
| 2013                and thereafter |   |   | 2,173 |   |
| Total                              |   | $      | 7,142 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | November                30,2007(Unaudited) |   |   | August                31,2007(Audited) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|----------------------------------------|--------|
| Notes                payable:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                       |   |   |                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |
| Revolving                line of credit promissory note due August 31, 2008. Interest at LIBOR                plus                2.0% or 1.75% upon achievement of certain financial performance                criteria.  The loan is secured by the business assets of the                Company and personal guarantees of the Company’s two majority shareholders                (the Chairman of the Board and the CEO of the Company).  The                loan is further secured by certain marketable securities of the Company’s                major shareholder, the Company’s Chairman of the Board. |   | $                                          | 14,695 |   |                                   | $      | 15,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Term                loan due in monthly installments of $167 plus interest at LIBOR plus                2.0%                or 1.75% upon achievement of certain financial performance criteria                through maturity date, August 31, 2011.  The loan is secured by                the business assets of the Company and personal guarantees of the                Company’s two majority shareholders. The loan is further secured by                certain marketable securities of the Company’s major                shareholder.                                                                                  |   |                                       | 17,587 |   |                                   |   | 18,167 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Various                term notes due in monthly installments of $14, including interest                ranging                from 4.9% to 9.03% through April 2010. The loans are secured by vehicles                and equipment.                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                       | 278    |   |                                   |   | 314 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Convertible                Term                Note:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Convertible                term note due in monthly installments of $227 plus interest at the                Prime                Rate plus 3.0% (subject to adjustments as described below) through                maturity date, November 30, 2008.  The loan is guaranteed by the                Company’s two majority shareholders.                                                                                                                                                                                                                                                                                                  |   |                                       | 5,450  |   |                                   |   | 5,678 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Debt                with majority                shareholder:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                       |   |   |                                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Unsecured                line of credit promissory note due December 1, 2010.  Interest                at the one-month LIBOR plus 3.0% with $8,000 available                borrowings.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       | 1,000  |   |                                   |   | 1,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Term                note due in monthly installments of $3 including interest at 4.0%                through                September 2008.  The loan is secured by vehicles and                equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       | 23     |   |                                   |   | 30 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Variable                Interest                Entity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                       |   |   |                                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Revolving                line of credit promissory note due February 29, 2008. Interest at                LIBOR                plus 1.6%.  The loan is secured by real estate and personal                guarantees of the Company’s two majority shareholders.                                                                                                                                                                                                                                                                                                                                                                          |   |                                       | 2,200  |   |                                   |   | 2,200 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                                   |   |   |   |
| Various                term loans due in monthly installments totaling $44 plus interest                at                ranges from LIBOR plus 1.5% to LIBOR plus 1.6%.  The loans                mature at dates ranging from February 2009 through April 2011. The                notes                are secured by real estate and personal guarantees of the Company’s two                majority shareholders.                                                                                                                                                                                                                  |   |                                       | 4,604  |   |                                   |   | 5,062 |   |

| Capital                  leases:                                                                                                                                                                                                             |   |   |    |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                                                                                                                                         |   |   |    |   |   |   |
| Various                  notes due in monthly installments of $6 including interest at ranges                  from                  2.3% to 11.6% through November 2010. The loans are secured by computers                  and equipment. |   |   | 93      |   |   |   | 112 |   |
| Total                  debt obligation                                                                                                                                                                                                       |   |   | 45,930  |   |   |   | 47,563 |   |
| Less                  current maturities                                                                                                                                                                                                     |   |   | (20,987 | )      |   |   | (22,679 | ) |
| Long-term                  portion of outstanding debt                                                                                                                                                                                       |   | $      | 24,943  |   |   | $      | 24,884 |   |

----

Index

| 2008                               |   | $      | 20,987 |   |
|------------------------------------|--------|--------|--------|--------|
| 2009                               |   |   | 9,314  |   |
| 2010                               |   |   | 2,539  |   |
| 2011                               |   |   | 13,090 |   |
| 2012                               |   |   | -      |   |
| 2013                and thereafter |   |   | -      |   |
|                               |   | $      | 45,930 |   |

----

Index

| • | the                average closing price of the                Company’s common stock as reported by Bloomberg, L.P. for the five trading                days immediately preceding the repayment date is greater than or                equal to                109% of the conversion price of the Note, set in the Note at $5.50                per                share (based upon the conversion price of $5.50, the average closing                price                required would be $6.00); |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| • | the                total value of the shares                converted cannot exceed 25% of the aggregate dollar trading volume                of the                Company’s common stock for the previous twenty-two trading                days; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| • | there                must be an effective                registration statement covering the shares of the Company’s common stock                into which the principal and interest under the Note are convertible                or an                exemption from registration for resale must be available pursuant                to Rule                144 of the Securities Act;                and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| • | there                must be no event of default                existing under the Note that has not been cured or is otherwise waived                in                writing by Laurus at Laurus’option. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a                failure to make payments under                the Note when due; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | a                material breach of the                transaction documents by the                Company; |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | bankruptcy                related                events; |
|--------|---------|----------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | a                change of control transaction                without prior approval; and |
|--------|---------|-------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | events                of default under certain                other agreements to which the Company is a                party. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

----

Index

| • | Laurus                may not convert the Note or                exercise the Laurus Warrant for a number of shares that would cause                all                shares then held by Laurus to exceed 4.99% of the Company’s outstanding                shares of common stock unless there has been an event of default                or Laurus                provides the Company with seventy-five days prior                notice. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Laurus                agreed that it would not                acquire in aggregate more than 2,108,764 shares of common stock through                the conversion of the Note or the Laurus Warrant or through any agreement                related thereto unless the Company’s shareholders approved such                issuance. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                                         |   | November 30,2007(Unaudited) |   |   | August 31, 2007(Audited) |   |
|--------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|
|                                                         |   |                             |   |   |                               |   |
| Tax                at U.S. Federal statutory rate            |   |                             | 34.0   | %      |                               |   | 34.0 | % |
| State                and local taxes, net of federal benefit |   |                             | 5.6    |   |                               |   | 5.6 |   |
| Other                                                        |   |                             | -      |   |                               |   | - |   |
| Change                in valuation allowance                 |   |                             | (39.6  | )      |                               |   | (39.6 | ) |
|                                                         |   |                             | 0.0    | %      |                               |   | (0.0 | )% |

|                                         |   | November 30,2007(Unaudited) |   |   | August 31, 2007(Audited) |   |
|----------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|
| Current:                                     |   |                             |   |   |                               |   |
| Federal                                      |   | $                                | 206    |   |                               | $      | (1,652 | ) |
| State                                        |   |                             | 33     |   |                               |   | (273 | ) |
|                                         |   |                             | 239    |   |                               |   | (1,925 | ) |
| Deferred:                                    |   |                             |   |   |                               |   |   |   |
| Federal                                      |   |                             | (1     | )      |                               |   | (96 | ) |
| State                                        |   |                             | 2      |   |                               |   | (15 | ) |
|                                         |   |                             | 1      |   |                               |   | (111 | ) |
|                                         |   |                             | 2      |   |                               |   |   |   |
| Change                in valuation allowance |   |                             | (181   | )      |                               |   | 2,193 |   |
|                                         |   |                             |   |   |                               |   |   |   |
| Net                income tax (benefit)      |   | $                                | 59     |   |                               | $      | 157 |   |

|                                                          |   | November 30,2007(Unaudited) |   |   | August 31, 2007(Audited) |   |
|---------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|
| Deferred                Tax Assets:                           |   |                             |   |   |                               |   |
| Current:                                                      |   |                             |   |   |                               |   |
| Allowances                for doubtful accounts and inventory |   | $                                | 551    |   |                               | $      | 637 |   |
| Accrued                liabilities and other                  |   |                             | 1,492  |   |                               |   | 1,494 |   |
| Noncurrent:                                                   |   |                             |   |   |                               |   |   |   |
| Amortization                of covenants                      |   |                             | 332    |   |                               |   | 270 |   |
| Depreciation                                                  |   |                             | (221   | )      |                               |   | (246 | ) |
| Net                operating losses and other carryforwards   |   |                             | 3,504  |   |                               |   | 3,684 |   |
|                                                          |   |                             | 5,658  |   |                               |   | 5,839 |   |
|                                                          |   |                             |   |   |                               |   |   |   |
| Valuation                allowance                            |   |                             | (4,123 | )      |                               |   | (4,304 | ) |
|                                                          |   |                             |   |   |                               |   |   |   |
|                                                          |   | $                                | 1,535  |   |                               | $      | 1,535 |   |

----

Index

|                                                        |   | Number of Shares |        |   |   |   |
|-------------------------------------------------------------|--------|----------------------------|-------------|--------|--------|--------|
|                                                        |   | Authorized                 |        |   | Issued |   |   | Outstanding |   |   | Amount |   |
|                                                        |   |                       |        |   |   |   |   |   |   |   |   |   |
| Common                stock, $0.10 par                value |   |                       | 150,000,000 |   |   |   | 11,391,823 |   |   |   | 11,391,823 |   |   | $ | 1,117 |   |

|                                                           |   | Number of Shares |      |   |   |   |
|----------------------------------------------------------------|--------|----------------------------|-----------|--------|--------|--------|
|                                                           |   | Authorized                 |      |   | Issued |   |   | Outstanding |   |   | Amount |   |
|                                                           |   |                       |      |   |   |   |   |   |   |   |   |   |
| Preferred                stock, $0.10 par                value |   |                       | 1,000,000 |   |   |   | 66,180 |   |   |   | 66,180 |   |   | $ | 6,618 |   |

----

Index

|                                                      |   | ForeignCurrencyAdjustments |   |   | UnrealizedGains (Losses)on Securities |   |   | Reclassification ofRealized Gains(Losses) includedin Net Income |   |   | AccumulatedOtherComprehensiveIncome |   |
|-----------------------------------------------------------|--------|----------------------------|--------|--------|-------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|
|                                                      |   |                       |   |   |                                            |   |   |                                                                                     |   |   |                                |   |
| Balance                at August 31,                2007  |   | $                          | 259    |   |                                            | $      | (41    | )                                                                                        |   | $      | 42                                  |   |   | $ | 260 |   |
|                                                      |   |                       |   |   |                                            |   |   |                                                                                     |   |   |                                |   |   |   |   |   |
| Period                change                              |   |                       | 40     |   |                                            |   | -      |                                                                                     |   |   | -                                   |   |   |   | 40 |   |
|                                                      |   |                       |   |   |                                            |   |   |                                                                                     |   |   |                                |   |   |   |   |   |
| Balance                at November30,                2007 |   | $                          | 299    |   |                                            | $      | (41    | )                                                                                        |   | $      | 42                                  |   |   | $ | 300 |   |

----

Index

|                                                                        |   | Three Month Period Ended |       |
|-----------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                        |   | November 30,2007(Unaudited)        |       |   | November 30,2006(Unaudited) |   |
|                                                                        |   |                                    |       |   |   |   |
| Net                Income Available to Common Shareholders                  |   | $                                       | 10         |   |   | $ | 726 |   |
|                                                                        |   |                                    |       |   |   |   |   |   |
| Basic                Income Per Common Share                                |   | $                                       | 0.00       |   |   | $ | 0.07 |   |
|                                                                        |   |                                    |       |   |   |   |   |   |
| Basic                weighted average number of common shares outstanding   |   |                                    | 11,391,823 |   |   |   | 10,524,722 |   |
|                                                                        |   |                                    |       |   |   |   |   |   |
| Diluted                Income Per Common Share:                             |   | $                                       | 0.00       |   |   | $ | 0.06 |   |
|                                                                        |   |                                    |       |   |   |   |   |   |
| Diluted                weighted average number of common shares outstanding |   |                                    | 12,768,981 |   |   |   | 12,242,284 |   |

| Segment                                                                                                                               |   | Location(s)                                                                                                                                                                                                     |   | Description                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|
| Corporate                and various Wireless                Infrastructure & Electronics Integration                subsidiaries |   | Indianapolis,                IN                (1)                                                                                                                                                              |   | Corporate                offices, various                subsidiary offices and warehouse facilities |
|                                                                                                                                  |   |                                                                                                                                                                                                            |   |                                                                                                 |
| Wireless                Infrastructure                                                                                                |   | Cleveland,                OH, Kansas City, MO,                Alpharetta, GA,  Pensacola,                FL, and Richmond, VA                metropolitan areas (2);                Ft. Wayne, IN (3) |   | Offices,                warehouse                facilities                                          |
|                                                                                                                                  |   |                                                                                                                                                                                                            |   |                                                                                                 |
| Business                Solutions                                                                                                     |   | Richmond,                IN (4); Indianapolis,                IN (5); Brentwood,                TN (6); Provo, UT                (10); Tucson,                AZ (12); Loveland, CO                (11)         |   | Offices                                                                                              |
|                                                                                                                                  |   |                                                                                                                                                                                                            |   |                                                                                                 |
| Transportation                Infrastructure                                                                                          |   | Indianapolis,                IN, Sedalia, MO,                Knoxville, TN(7)                                                                                                                                   |   | Offices,                equipment yard,                warehouse, storage                            |
|                                                                                                                                  |   |                                                                                                                                                                                                            |   |                                                                                                 |
| Ultraviolet                Technologies                                                                                               |   | Crawfordsville,                IN(8);                United Kingdom, Singapore,                Shenzhen, China and GuangDong, China(9)                                                                          |   | Offices,                warehouse and                manufacturing facilities                        |

| (1) | The                leases on these properties are                with a limited liability company consolidated by the Company as a                variable                interest entity and owned by the Company’s two major                shareholders.   The operating lease agreement provides for                monthly base rent of $108 per month for office and warehouse facilities                through February 2017, adjusted annually to fair market value. The                agreement also includes a one-year renewal option. The lease is an                “Absolute Triple Net Lease” which provides for the lessee to pay most                expenses related to the building including repairs and maintenance,                insurance, and property                taxes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (2) | The                Company maintains various                operating lease agreements that provide for monthly base rents                between $1 and                $7that expire                between                January 31, 2008 and April 30, 2011 and may be adjusted annually                to fair                market value or to increases defined in the agreements. The agreements                include various multi-year renewal options and the lessee pays most                expenses related to the building including repairs and maintenance,                insurance, and property                taxes. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                Company maintains a sublease                obligation that provides for monthly base rent of $3 through December                31,                2010 and may be adjusted annually to fair market value or to increases                defined in the agreement. The agreement includes a one year renewal                option                and the lessee pays most expenses related to the building including                repairs and maintenance, insurance, and property                taxes. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The                lease on this property is with                the former Chief Operating Officer of the Company.  The                operating lease agreement provides for monthly base rent of $4 through                May                30, 2008, with nominal annual increases. The agreement also includes                a                one-year renewal option. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The                Company maintains a sublease                obligation that provides for monthly base rent of $5 through December                31,                2008 and may be adjusted annually to fair market value or to increases                defined in the agreement. The lessee pays most expenses related to                the                building including repairs and maintenance, insurance, and property                taxes.                There is no renewal option. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The                Company maintains an operating                lease agreement that provides for monthly                base rent of                $10through January                31, 2009. In addition to an escalating base monthly rent, the agreement                requires the Company to pay any increase in operating costs, real                estate                taxes, or utilities over the base                year. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | The                leases on these properties are                with a limited liability company consolidated by the Company as a                variable                interest entity and owned by the Company’s two major                shareholders.  The operating lease agreement provides for                monthly base rent of $25 through April 30, 2014, adjusted annually                to fair                market value. The agreement also includes a one-year renewal option.                The                lease is an “Absolute Triple Net Lease” which provides for the lessee to                pay most expenses related to the buildings including repairs and                maintenance, insurance, and property                taxes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | The                leases on these properties are                with a limited liability company consolidated by the Company as a                variable                interest entity and owned by the Company’s two major                shareholders.  The operating lease agreement provides for                monthly base rent of $7 through August 31, 2009, adjusted annually                to fair                market value. The Agreement also includes one renewal                option. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | The                Company maintains various                operating leases in the United Kingdom, Singapore and China providing                for                monthly base rent of approximately $10 with various expirations through                2015, which may be adjusted annually to fair market value or to increases                defined in the agreement. The agreement includes a one-year renewal                option                and the lessee pays most expenses related to the building including                repairs and maintenance, insurance, and property                taxes. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | The                Company maintains an operating                lease agreement that provides for monthly base rent of $25 through                January                31, 2011 and is increased 5% annually.  The lessee pays most                expenses related to repairs, maintenance, property taxes, and                insurance.  The lessor is required to carry minimalamounts                of                insurance.  The lease is                with a limited                liability company in which an employee is a                member. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | The                Company maintains an operating                lease agreement that provides for monthly base rent of $2 through                January                31, 2009.  The lessee pays most expenses related to repairs,                maintenance, property taxes, and insurance.  The lessor is                required to carry minimal amounts of                insurance. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) |   The                Company maintains                an operating lease agreement that provides for monthly base rent                of $5                through January 31, 2010.  The lessee pays most expenses related                to repairs, maintenance, property taxes, and insurance.  The                lessor is required to carry minimal amounts of insurance.  The                lease includes two three-year lease renewal options for a total of                six                years. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                              |   | Facilities |   |   | Vehicles andEquipment |   |
|---------------------------------------------------|--------|------------|--------|--------|----------------------------|--------|
| 2008                                              |   | $          | 1,616  |   |                       | $      | 481 |   |
| 2009                                              |   |       | 1,955  |   |                       |   | 42 |   |
| 2010                                              |   |       | 1,778  |   |                       |   | 10 |   |
| 2011                                              |   |       | 1,736  |   |                       |   | 1 |   |
| 2012                                              |   |       | 1,664  |   |                       |   | - |   |
| 2013                and                thereafter |   |       | 6,433  |   |                       |   | - |   |
|                                              |   |       |   |   |                       |   |   |   |
|                                              |   | $          | 15,182 |   |                       | $      | 534 |   |

|                                                                   |   | November 30,2007(Unaudited) |   |   | August 31,2007(Audited) |   |
|------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|
| Assets:                                                                |   |                             |   |   |                         |   |
| Note                receivable from subsidiary                employee |   | $                                | 300    |   |                         | $      | 300 |   |
|                                                                   |   |                             |   |   |                         |   |   |   |
| Liabilities:                                                           |   |                             |   |   |                         |   |   |   |
| Long-term                line of                credit                 |   |                             | (1,000 | )      |                         |   | (1,000 | ) |
| Installment                notes                payable                |   |                             | (23    | )      |                         |   | (30 | ) |
|                                                                   |   |                             |   |   |                         |   |   |   |
| Net                assets                (liabilities)                 |   | $                                | (723   | )      |                         | $      | (730 | ) |

----

Index

|                                                              |   | November 30,2007(Unaudited) |   |   | November 30,2006(Unaudited) |   |
|-------------------------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| Revenues:                                                         |   |                             |   |   |                             |   |
| Electronics                Integration                (1)         |   | $                                | -      |   |                             | $      | 3 |   |
| Total                                                             |   |                             | -      |   |                             |   | 3 |   |
|                                                              |   |                             |   |   |                             |   |   |   |
| Expenses:                                                         |   |                             |   |   |                             |   |   |   |
| Wireless                Infrastructure (2) (3)                (4) |   |                             | 223    |   |                             |   | 244 |   |
| Business                Solutions                (5)              |   |                             | 87     |   |                             |   | 12 |   |
| Transportation                Infrastructure                (6)   |   |                             | 117    |   |                             |   | 86 |   |
| Ultraviolet                Technologies                (7)        |   |                             | 21     |   |                             |   | 21 |   |
| Electronics                Integration                (2)         |   |                             | 45     |   |                             |   | 128 |   |
| Holding                Company (8)                (9)             |   |                             | 245    |   |                             |   | 55 |   |
| Total                                                             |   |                             | 738    |   |                             |   | 546 |   |

| (1) | During                the three months ending                November 30, 2006,,the Company’s TTCsubsidiary                performed $3 worth of                services for businesses owned by the Company’s two majority                shareholders. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                Company maintains an operating                lease agreement for the rental of a building with a limited liability                company consolidated by the Company as a variable interest entity                and                owned by the Company’s two majority shareholders.  A majority of                the Company’s subsidiaries maintain offices and or warehouse space in the                facility. The lease agreement includes a ten-year term with one option                to                extend the lease term for a one-year period. The agreement                provides for a                monthly base rent of $108per month.                The base rent shall be                adjusted annually to fair market value. In addition, the Company                shall pay                certain expenses including taxes, assessments, maintenance and                repairs.  Rent and related expenses of $255 and                $359were                recognized for the                three                monthsended                November                30, 2007and                2006,                respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                Company maintains a debt                obligation to its majority shareholder for the purchase of vehicles                and                equipment. The loans are secured by the assets and pay interest at                6%.  Interest expense of $1 was                recognized for the                three months                ending November30,                2007and 2006,                respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The                Company’s Fortune Wireless                subsidiary maintains an operating lease agreement for rental of a                building                with a limited liability company consolidated by the Company as a                variable                interest entity and owned by the Company’s two majority shareholders. The                operating lease agreement provides for monthly base rent of $4 through                April 30, 2011, adjusted annually to fair market value. The agreement                also                includes a one-year renewal option. Rent andrelated expenses                of                $12wasrecognized                for the three months                ending November                30, 2007 and                2006,                respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The                Company’s PSM subsidiary holds                a lease for an office building in Richmond, IN from a former Chief Operating                Officerof the                Company. The lease is for a period of five years and expires in May                2008.                The agreement provides for base rent of $4 per month with nominal                annual                increases.  Rent and related expense of $12 wasrecognized                for the three monthsending November30,                2007and 2006,                respectively.  The                Company’s ESG subsidiary entered into a lease agreement for an office                building in Provo, Utah which is leased from a limited liability                company                in which an employee is a member of the limited liability                company.  The lease is due to expire January 31,                2011.  Rent                and related expense of $75 and $0was recognized                for the                three months                ending                November 30,                2007and 2006,                respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The                Company’s JH Drew subsidiary                maintains an operating lease agreement for rental of three buildings                located in Indiana, Tennessee and Missouri with a limited liability                company consolidated by the Company as a variable interest entity                and                owned by the Company’s two majorityshareholders.                The lease agreement                includes a five-year term with one option to extend the lease term                for a                one-year period and provides for                base rent of                $25per month.                The                base rent shall be adjusted annually to fair market value. In addition,                the Company shall pay certain expenses including taxes, assessments,                maintenance and repairs.  Rent and related expenses of                $117and                $86were                recognized for the                three                monthsending November                30, 2007and                2006,                respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | The                Company’s Nor-Cote subsidiary                maintains an operating lease agreement for rental of a building with                a                limited liability company consolidated by the Company as a variable                interest entity and owned by the Company’s two major                shareholders.  The agreement provides for monthly base rent of                $7 and expires in August 2009. The base rent shall be adjusted annually                to                fair market value. The Agreement also includes one renewal option,                which                allows the Company to extend the lease term for an additional                year.  Rent and related expenses of $21were                recognized for the                three months                ending November                30, 2007 and                2006,                respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (8) | The                Company maintains an operating                lease agreement for the rental of a building with a limited liability                company consolidated by the Company as a variable interest entity                and                owned by the Company’s two majority shareholders.  The lease                agreement includes a ten-year term with one option to extend the                lease                term for a one-year period. The agreement provides for a monthly                base rent                of $63 per month. The base rent shall be adjusted annually to fair                market                value. In addition, the Company shall pay certain expenses including                taxes, assessments, maintenance and repairs.  Rent and related                expenses of $227                and $43were                recognized for the                three months                ending November                30, 2007and                2006,                respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | As                described in Note 14, the                Company entered into various unsecured line of credit agreements                with its                major shareholder. Interest expense booked on these agreements amounted                to                $18 and                $12 for                the three monthsendingNovember30,                2007and 2006,                respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

| Segment                & Entity                                                                                                                                                                                                                                                    |   | Business                Activity                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                  |
| Business                Solutions                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                  |
| Professional                Staff Management,                Inc. and subsidiaries; CSM, Inc. and subsidiaries and related entities;                Employer Solutions Group, Inc.andrelated                entities; Precision                Employee Management,                LLC |   | Provider                of outsourced human                resource services                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                  |
| Wireless                Infrastructure                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                  |
| Fortune                Wireless, Inc.; Magtech                Services, Inc.; Cornerstone Wireless Construction Services, Inc.;                James                Westbrook & Associates, LLC                                                                                    |   | Provider                turnkey development                services for the deployment of wireless networks                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                  |
| Transportation                Infrastructure                                                                                                                                                                                                                                           |   |                                                                                                                                                                                                                                                                                  |
| JamesH.                Drew Corp. and                subsidiaries                                                                                                                                                                                                                      |   | Installer                of fiber optic,                smart highway                systems, traffic signals, street signs, high mast and ornamental                lighting,                guardrail, wireless communications, and fabrications of structural                steel |
|                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                  |
| Ultraviolet                Technologies                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                  |
| Nor-Cote                International, Inc. and                subsidiaries                                                                                                                                                                                                            |   | Manufacturer                of UV curable screen                printing ink products                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                  |
| Electronics                Integration                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                  |
| Kingston                Sales Corporation;                Commercial Solutions, Inc.; Telecom Technology,                Corp.                                                                                                                                                         |   | Distributor                and installer of home                and commercial electronics                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                  |
| Variable                Interest                Entity                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                  |
| Fortune                Fisbeck Development,                LLC                                                                                                                                                                                                                         |   | Land,                buildings and building                improvements that are utilized solely by the                Company                                                                                                                                                        |

|                                                 |   | BusinessSolutions (1) |   |   | WirelessInfrastructure |   |   | TransportationInfrastructure |   |   | Ultraviolet Technologies |   |   | ElectronicsIntegration |   |   | OperatingTotal |   |
|------------------------------------------------------|--------|----------------------------|--------|--------|------------------------|--------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|------------------------|--------|--------|----------------|--------|
| 3-Months Ended November 30, 2007 |   |                       |   |   |                   |   |   |                         |   |   |                          |   |   |                   |   |   |           |   |
| Revenue                                              |   | $                          | 20,369 |   |                   | $      | 5,527  |                         |   | $      | 11,580                        |   |   | $                      | 3,266  |   |           | $      | 3,013 |   |   | $ | 43,755 |   |
| Cost                of revenue                       |   |                       | 16,255 |   |                   |   | 3,841  |                         |   |   | 10,258                        |   |   |                   | 1,882  |   |           |   | 2,611 |   |   |   | 34,847 |   |
| Gross                profit                          |   |                       | 4,114  |   |                   |   | 1,686  |                         |   |   | 1,322                         |   |   |                   | 1,384  |   |           |   | 402 |   |   |   | 8,908 |   |
| Operating                expenses                    |   |                       |   |   |                   |   |   |                         |   |   |                          |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Selling,                general and administrative   |   |                       | 3,386  |   |                   |   | 1,080  |                         |   |   | 815                           |   |   |                   | 1,301  |   |           |   | 425 |   |   |   | 7,007 |   |
| Depreciation                and amortization         |   |                       | 353    |   |                   |   | 41     |                         |   |   | 4                             |   |   |                   | 70     |   |           |   | 14 |   |   |   | 482 |   |
| Impairment                                           |   |                       | -      |   |                   |   |   |                         |   |   | -                             |   |   |                   | -      |   |           |   |   |   |   |   | - |   |
| Total                operating expenses              |   |                       | 3,739  |   |                   |   | 1,121  |                         |   |   | 819                           |   |   |                   | 1,371  |   |           |   | 439 |   |   |   | 7,489 |   |
|                                                 |   |                       |   |   |                   |   |   |                         |   |   |                          |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Segment                operating income (loss)       |   | $                          | 375    |   |                   | $      | 565    |                         |   | $      | 503                           |   |   | $                      | 13     |   |           | $      | (37 | ) |   | $ | 1,419 |   |

----

Index

|                                               |   | HoldingCompany |   |   | ConsolidatedVIE |   |   | VIEElimination |   |   | SegmentTotals |   |
|----------------------------------------------------|--------|----------------|--------|--------|-----------------|--------|--------|----------------|--------|--------|---------------|--------|
| 3-months                ended November 30, 2007    |   |           |   |   |            |   |   |           |   |   |          |   |
| Revenue                                            |   | $              | -      |   |            | $      | 433    |           |   | $      | (431          | )      |   | $ | 43,757 |   |
| Cost                of revenue                     |   |           | -      |   |            |   | -      |           |   |   | -             |   |   |   | 34,847 |   |
| Gross                profit                        |   |           | -      |   |            |   | 433    |           |   |   | (431          | )      |   |   | 8,910 |   |
| Operating                expenses                  |   |           |   |   |            |   |   |           |   |   |          |   |   |   |   |   |
| Selling,                general and administrative |   |           | 372    |   |            |   | 17     |           |   |   | (431          | )      |   |   | 6,965 |   |
| Depreciation                and amortization       |   |           | 160    |   |            |   | 49     |           |   |   | -             |   |   |   | 691 |   |
| Impairment                                         |   |           | -      |   |            |   | -      |           |   |   | -             |   |   |   | - |   |
| Total                operating expenses            |   |           | 532    |   |            |   | 66     |           |   |   | (431          | )      |   |   | 7,656 |   |
|                                               |   |           |   |   |            |   |   |           |   |   |          |   |   |   |   |   |
| Segment                operating income (loss)     |   | $              | (532   | )      |            | $      | 367    |           |   | $      | -             |   |   | $ | 1,254 |   |

|                                               |   | BusinessSolutions (1) |   |   | WirelessInfrastructure |   |   | TransportationInfrastructure |   |   | UltravioletTechnologies |   |   | ElectronicsIntegration |   |   | OperatingTotal |   |
|----------------------------------------------------|--------|----------------------------|--------|--------|------------------------|--------|--------|------------------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|--------|----------------|--------|
| 3-Months                Ended November 30, 2006    |   |                       |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |
| Revenue                                            |   | $                          | 11,630 |   |                   | $      | 8,996  |                         |   | $      | 12,747                  |   |   | $                      | 3,049  |   |           | $      | 4,257 |   |   | $ | 40,679 |   |
| Cost                of revenue                     |   |                       | 9,181  |   |                   |   | 6,532  |                         |   |   | 11,243                  |   |   |                   | 1,723  |   |           |   | 3,231 |   |   |   | 31,910 |   |
| Gross                profit                        |   |                       | 2,449  |   |                   |   | 2,464  |                         |   |   | 1,504                   |   |   |                   | 1,326  |   |           |   | 1,026 |   |   |   | 8,769 |   |
| Operating                expenses                  |   |                       |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Selling,                general and administrative |   |                       | 1,569  |   |                   |   | 1,802  |                         |   |   | 773                     |   |   |                   | 1,134  |   |           |   | 666 |   |   |   | 5,944 |   |
| Depreciation                and amortization       |   |                       | 142    |   |                   |   | 115    |                         |   |   | 138                     |   |   |                   | 109    |   |           |   | 23 |   |   |   | 527 |   |
| Total                operating expenses            |   |                       | 1,711  |   |                   |   | 1,917  |                         |   |   | 911                     |   |   |                   | 1,243  |   |           |   | 689 |   |   |   | 6,471 |   |
|                                               |   |                       |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Segment                operating income (loss)     |   | $                          | 738    |   |                   | $      | 547    |                         |   | $      | 593                     |   |   | $                      | 83     |   |           | $      | 337 |   |   | $ | 2,298 |   |

|                                               |   | HoldingCompany |   |   | ConsolidatedVIE |   |   | VIEElimination |   |   | SegmentTotals |   |
|----------------------------------------------------|--------|----------------|--------|--------|-----------------|--------|--------|----------------|--------|--------|---------------|--------|
| 3-Months                Ended November 30, 2006    |   |           |   |   |            |   |   |           |   |   |          |   |
| Revenue                                            |   | $              | -      |   |            | $      | 226    |           |   | $      | (221          | )      |   | $ | 40,684 |   |
| Cost                of revenue                     |   |           | -      |   |            |   | -      |           |   |   | -             |   |   |   | 31,910 |   |
| Gross                profit                        |   |           | -      |   |            |   | 226    |           |   |   | (221          | )      |   |   | 8,774 |   |
| Operating                expenses                  |   |           |   |   |            |   |   |           |   |   |          |   |   |   |   |   |
| Selling,                general and administrative |   |           | 708    |   |            |   | -      |           |   |   | (221          | )      |   |   | 6,431 |   |
| Depreciation                and amortization       |   |           | 142    |   |            |   | 49     |           |   |   | -             |   |   |   | 718 |   |
| Total                operating expenses            |   |           | 850    |   |            |   | 49     |           |   |   | (221          | )      |   |   | 7,149 |   |
|                                               |   |           |   |   |            |   |   |           |   |   |          |   |   |   |   |   |
| Segment                operating income (loss)     |   | $              | (850   | )      |            | $      | 177    |           |   | $      | -             |   |   | $ | 1,625 |   |

----

Index

|                                                                                                      |   | BusinessSolutions |   |   | WirelessInfrastructure |   |   | TransportationInfrastructure |   |   | UltravioletTechnologies |   |   | ElectronicsIntegration |   |   | OperatingTotal |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|------------------------|--------|--------|------------------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|--------|----------------|--------|
| As                of November 30, 2007 (unaudited)                                                        |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |
| Current                Assets                                                                             |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |
| Cash                and equivalents                                                                       |   | $                 | 6,262  |   |                   | $      | (1,236 | )                            |   | $      | 383                     |   |   | $                      | 430    |   |           | $      | (83 | ) |   | $ | 5,756 |   |
| Restricted                cash                                                                            |   |              | 5,205  |   |                   |   | -      |                         |   |   | -                       |   |   |                   | -      |   |           |   | - |   |   |   | 5,205 |   |
| Marketable                equity securities                                                               |   |              | -      |   |                   |   | -      |                         |   |   | -                       |   |   |                   | -      |   |           |   | - |   |   |   | - |   |
| Accounts                receivable, net                                                                   |   |              | 2,776  |   |                   |   | 6,996  |                         |   |   | 8,346                   |   |   |                   | 1,874  |   |           |   | 1,635 |   |   |   | 21,627 |   |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts |   |              | -      |   |                   |   | 1,396  |                         |   |   | 1,936                   |   |   |                   | -      |   |           |   | - |   |   |   | 3,332 |   |
| Inventory,                net                                                                             |   |              | 7      |   |                   |   | 78     |                         |   |   | 3,124                   |   |   |                   | 1,825  |   |           |   | 982 |   |   |   | 6,016 |   |
| Deferred                tax asset                                                                         |   |              | 922    |   |                   |   | -      |                         |   |   | 613                     |   |   |                   | -      |   |           |   | - |   |   |   | 1,535 |   |
| Prepaid                expenses and other current assets                                                  |   |              | 629    |   |                   |   | 715    |                         |   |   | 413                     |   |   |                   | 215    |   |           |   | 127 |   |   |   | 2,099 |   |
| Total                Current Assets                                                                       |   |              | 15,801 |   |                   |   | 7,949  |                         |   |   | 14,815                  |   |   |                   | 4,344  |   |           |   | 2,661 |   |   |   | 45,570 |   |
|                                                                                                      |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Other                Assets                                                                               |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Property,                plant & equipment, net                                                       |   |              | 633    |   |                   |   | 729    |                         |   |   | 1,605                   |   |   |                   | 1,961  |   |           |   | 144 |   |   |   | 5,072 |   |
| Accounts                receivable - long term                                                            |   |              | -      |   |                   |   | -      |                         |   |   | 1,038                   |   |   |                   | -      |   |           |   | - |   |   |   | 1,038 |   |
| Goodwill                                                                                                  |   |              | 12,338 |   |                   |   | -      |                         |   |   | 152                     |   |   |                   | 4,695  |   |           |   | 1,276 |   |   |   | 18,461 |   |
| Other                intangible assets, net                                                               |   |              | 6,602  |   |                   |   | -      |                         |   |   | -                       |   |   |                   | 540    |   |           |   | - |   |   |   | 7,142 |   |
| Other                long term assets                                                                     |   |              | 13     |   |                   |   | -      |                         |   |   | -                       |   |   |                   | 91     |   |           |   | 2 |   |   |   | 106 |   |
| Total                Other Assets                                                                         |   |              | 19,586 |   |                   |   | 729    |                         |   |   | 2,527                   |   |   |                   | 7,287  |   |           |   | 1,422 |   |   |   | 31,551 |   |
|                                                                                                      |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Total                Assets                                                                               |   | $                 | 35,387 |   |                   | $      | 8,678  |                         |   | $      | 17,342                  |   |   | $                      | 11,631 |   |           | $      | 4,083 |   |   | $ | 77,121 |   |

|                                                                                                      |   | HoldingCompany |   |   | ConsolidatedVIE |   |   | SegmentTotals |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-----------------|--------|--------|---------------|--------|
| As                of November 30, 2007 (continued, unaudited)                                             |   |           |   |   |            |   |   |          |   |
| Current                Assets                                                                             |   |           |   |   |            |   |   |          |   |
| Cash                and equivalents                                                                       |   | $              | 117    |   |            | $      | 20     |          |   | $ | 5,893 |   |
| Restricted                cash                                                                            |   |           | -      |   |            |   | -      |          |   |   | 5,205 |   |
| Marketable                equity securities                                                               |   |           | -      |   |            |   | -      |          |   |   | - |   |
| Accounts                receivable, net                                                                   |   |           | (1,272 | )      |            |   | -      |          |   |   | 20,355 |   |
|                                                                                                      |   |           |   |   |            |   |   |          |   |   |   |   |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts |   |           | -      |   |            |   | -      |          |   |   | 3,332 |   |
| Inventory,                net                                                                             |   |           | -      |   |            |   | -      |          |   |   | 6,016 |   |
| Deferred                tax asset                                                                         |   |           | -      |   |            |   | -      |          |   |   | 1,535 |   |
| Prepaid                expenses and other current assets                                                  |   |           | 39     |   |            |   | (7     | )             |   |   | 2,147 |   |
| Total                Current Assets                                                                       |   |           | (1,116 | )      |            |   | 13     |          |   |   | 44,483 |   |
|                                                                                                      |   |           |   |   |            |   |   |          |   |   |   |   |
| Other                Assets                                                                               |   |           |   |   |            |   |   |          |   |   |   |   |
| Property,                plant & equipment, net                                                       |   |           | 524    |   |            |   | 6,144  |          |   |   | 11,740 |   |
| Accounts                receivable - long term                                                            |   |           | -      |   |            |   | -      |          |   |   | 770 |   |
| Goodwill                                                                                                  |   |           | -      |   |            |   | -      |          |   |   | 18,461 |   |
| Other                intangible assets, net                                                               |   |           | -      |   |            |   | -      |          |   |   | 7,142 |   |
| Other                long term assets                                                                     |   |           | 999    |   |            |   | 2      |          |   |   | 1,107 |   |
| Total                Other Assets                                                                         |   |           | 1,523  |   |            |   | 6,146  |          |   |   | 39,220 |   |
|                                                                                                      |   |           |   |   |            |   |   |          |   |   |   |   |
| Total                Assets                                                                               |   | $              | 425    |   |            | $      | 6,159  |          |   | $ | 83,703 |   |

----

Index

|                                                                                                      |   | BusinessSolutions |   |   | WirelessInfrastructure |   |   | TransportationInfrastructure |   |   | UltravioletTechnologies |   |   | ElectronicsIntegration |   |   | OperatingTotal |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|------------------------|--------|--------|------------------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|--------|----------------|--------|
| As                of August 31, 2007 (audited)                                                            |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |
| Current                Assets                                                                             |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |
| Cash                and equivalents                                                                       |   | $                 | 9,104  |   |                   | $      | (134   | )                            |   | $      | 498                     |   |   | $                      | 519    |   |           | $      | (77 | ) |   | $ | 9,910 |   |
| Restricted                cash                                                                            |   |              | 5,091  |   |                   |   | -      |                         |   |   | -                       |   |   |                   | -      |   |           |   | - |   |   |   | 5,091 |   |
| Accounts                receivable, net                                                                   |   |              | 3,330  |   |                   |   | 5,193  |                         |   |   | 9,913                   |   |   |                   | 1,856  |   |           |   | 1,614 |   |   |   | 21,906 |   |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts |   |              | -      |   |                   |   | 560    |                         |   |   | 719                     |   |   |                   | -      |   |           |   | - |   |   |   | 1,279 |   |
| Inventory,                net                                                                             |   |              | 9      |   |                   |   | 78     |                         |   |   | 3,339                   |   |   |                   | 1,759  |   |           |   | 1,471 |   |   |   | 6,656 |   |
| Deferred                tax asset                                                                         |   |              | 922    |   |                   |   | -      |                         |   |   | 613                     |   |   |                   | -      |   |           |   | - |   |   |   | 1,535 |   |
| Prepaid                expenses and other current assets                                                  |   |              | 731    |   |                   |   | 713    |                         |   |   | 399                     |   |   |                   | 232    |   |           |   | 238 |   |   |   | 2,313 |   |
| Total                Current Assets                                                                       |   |              | 19,187 |   |                   |   | 6,410  |                         |   |   | 15,481                  |   |   |                   | 4,366  |   |           |   | 3,246 |   |   |   | 48,690 |   |
|                                                                                                      |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Other                Assets                                                                               |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Property,                plant & equipment, net                                                       |   |              | 636    |   |                   |   | 790    |                         |   |   | 1,614                   |   |   |                   | 1,869  |   |           |   | 139 |   |   |   | 5,048 |   |
| Accounts                receivable - long term                                                            |   |              | -      |   |                   |   | -      |                         |   |   | 770                     |   |   |                   | -      |   |           |   | - |   |   |   | 770 |   |
| Goodwill                                                                                                  |   |              | 12,338 |   |                   |   | -      |                         |   |   | 152                     |   |   |                   | 4,695  |   |           |   | 1,276 |   |   |   | 18,461 |   |
| Other                intangible assets, net                                                               |   |              | 6,888  |   |                   |   | -      |                         |   |   | -                       |   |   |                   | 562    |   |           |   | - |   |   |   | 7,450 |   |
| Other                long term assets                                                                     |   |              | 38     |   |                   |   | -      |                         |   |   | -                       |   |   |                   | 15     |   |           |   | 4 |   |   |   | 57 |   |
| Total                Other Assets                                                                         |   |              | 19,900 |   |                   |   | 790    |                         |   |   | 2,536                   |   |   |                   | 7,141  |   |           |   | 1,419 |   |   |   | 31,786 |   |
|                                                                                                      |   |              |   |   |                   |   |   |                         |   |   |                    |   |   |                   |   |   |           |   |   |   |   |   |   |   |
| Total                Assets                                                                               |   | $                 | 39,087 |   |                   | $      | 7,200  |                         |   | $      | 18,017                  |   |   | $                      | 11,507 |   |           | $      | 4,665 |   |   | $ | 80,476 |   |

|                                                                                                      |   | HoldingCompany |   |   | ConsolidatedVIE |   |   | SegmentTotals |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-----------------|--------|--------|---------------|--------|
| As                of August 31, 2007 (continued, audited)                                                 |   |           |   |   |            |   |   |          |   |
| Current                Assets                                                                             |   |           |   |   |            |   |   |          |   |
| Cash                and equivalents                                                                       |   | $              | (159   | )      |            | $      | 79     |          |   | $ | 9,830 |   |
| Restricted                cash                                                                            |   |           | -      |   |            |   | -      |          |   |   | 5,091 |   |
| Accounts                receivable, net                                                                   |   |           | (749   | )      |            |   | -      |          |   |   | 21,157 |   |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts |   |           | -      |   |            |   | -      |          |   |   | 1,279 |   |
| Inventory,                net                                                                             |   |           | -      |   |            |   | -      |          |   |   | 6,656 |   |
| Deferred                tax asset                                                                         |   |           | -      |   |            |   | -      |          |   |   | 1,535 |   |
| Prepaid                expenses and other current assets                                                  |   |           | 517    |   |            |   | 10     |          |   |   | 2,840 |   |
| Total                Current Assets                                                                       |   |           | (391   | )      |            |   | 89     |          |   |   | 48,388 |   |
|                                                                                                      |   |           |   |   |            |   |   |          |   |   |   |   |
| Other                Assets                                                                               |   |           |   |   |            |   |   |          |   |   |   |   |
| Property,                plant & equipment, net                                                       |   |           | 564    |   |            |   | 6,626  |          |   |   | 12,238 |   |
| Accounts                receivable - long term                                                            |   |           | -      |   |            |   | -      |          |   |   | 770 |   |
| Goodwill                                                                                                  |   |           | -      |   |            |   | -      |          |   |   | 18,461 |   |
| Other                intangible assets, net                                                               |   |           | -      |   |            |   | -      |          |   |   | 7,450 |   |
| Other                long term assets                                                                     |   |           | 988    |   |            |   | 3      |          |   |   | 1,048 |   |
| Total                Other Assets                                                                         |   |           | 1,552  |   |            |   | 6,629  |          |   |   | 39,967 |   |
|                                                                                                      |   |           |   |   |            |   |   |          |   |   |   |   |
| Total                Assets                                                                               |   | $              | 1,161  |   |            | $      | 6,718  |          |   | $ | 88,355 |   |

----

Index

te

----

Index

----

Index

|                                                       |   | Revenue for the3-months ended November 30, |   |   | Operating income for the3-months ended November 30, |   |
|------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|
|                                                       |   | 2007                                                                |   |   | 2006                                                                              |   |   | 2007 |   |   | 2006 |   |
|                                                       |   | (Dollars                in thousands)                               |   |
| Business                Solutions                          |   | $                                                                   | 20,369 |   |                                                                              | $      | 11,630 |   |   | $ | 375 |   |   | $ | 738 |   |
| Wireless                Infrastructure                     |   |                                                                | 5,527  |   |                                                                              |   | 8,996 |   |   |   | 565 |   |   |   | 547 |   |
| Transportation                Infrastructure               |   |                                                                | 11,580 |   |                                                                              |   | 12,747 |   |   |   | 503 |   |   |   | 593 |   |
| Ultraviolet                Technologies                    |   |                                                                | 3,266  |   |                                                                              |   | 3,049 |   |   |   | 13 |   |   |   | 83 |   |
| Electronics                Integration                     |   |                                                                | 3,013  |   |                                                                              |   | 4,257 |   |   |   | (37 | ) |   |   | 337 |   |
| Holding                Company                             |   |                                                                | -      |   |                                                                              |   | - |   |   |   | (532 | ) |   |   | (850 | ) |
| Variable                Interest Entity                    |   |                                                                | 433    |   |                                                                              |   | 226 |   |   |   | 367 |   |   |   | 177 |   |
| Variable                Interest Entity Elimination        |   |                                                                | (431   | )      |                                                                              |   | (221 | ) |   |   | - |   |   |   | - |   |
| Segment                Totals                              |   | $                                                                   | 43,757 |   |                                                                              | $      | 40,684 |   |   | $ | 1,254 |   |   | $ | 1,625 |   |
|                                                       |   |                                                                |   |   |                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income Available to Common Shareholders |   |                                                                |   |   |                                                                              |   |   |   |   | $ | 10 |   |   | $ | 726 |   |

----

Index

| · | Organic                growth and the acquisitions of Precision on February 1, 2007 and                ESG on                March 1, 2007 within the Business Solutions segment; offset by |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                completion of several long-term contracts within the Transportation                Infrastructure segment, reduced volumes of work associated with the                Wireless Infrastructure operational changes enacted at February 28,                2007,                and a decrease in Electronics Integration revenue due primarily to                a lower                volume of sales of television products. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decrease                in gross profit in the Business Solutions segment due to higher claims                expense in the Company’s health and workers compensation insurance                programs; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Reduced                volume of work within the Transportation Infrastructure segment; |
|--------|-----------------------------------------------------------------------------------------|

| · | Reduced                volume of sales within the Electronics Integration segment; and |
|--------|----------------------------------------------------------------------------------------|

| · | Increased                interest expense due primarily to increased borrowings related to                financing of the Precision and ESG acquisitions. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | Three Month Period Ended |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|
|                                               |   | November 30, 2007             |   |   | November 30, 2006 |   |
|                                               |   | (Dollars                in thousands)   |   |
| Revenues                                           |   | $                                       | 20,369 |   |   |   | 100 | % |   | $ | 11,630 |   |   |   | 100 | % |
| Cost                of revenues                    |   |                                    | 16,255 |   |   |   | 79.8 | % |   |   | 9,181 |   |   |   | 78.9 | % |
| Gross                profit                        |   |                                    | 4,114  |   |   |   | 20.2 | % |   |   | 2,449 |   |   |   | 21.1 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative |   |                                    | 3,356  |   |   |   | 15.3 | % |   |   | 1,569 |   |   |   | 13.5 | % |
| Depreciation                and amortization       |   |                                    | 353    |   |   |   | 1.7 | % |   |   | 142 |   |   |   | 1.2 | % |
| Total                operating expenses            |   |                                    | 3,739  |   |   |   | 17.0 | % |   |   | 1,711 |   |   |   | 14.7 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                operating income            |   | $                                       | 375    |   |   |   | 3.2 | % |   | $ | 738 |   |   |   | 6.3 | % |

----

Index

|                                               |   | Three Month Period Ended |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|
|                                               |   | November 30, 2007             |   |   | November 30, 2006 |   |
|                                               |   | (Dollars                in thousands)   |   |
| Revenue                                            |   | $                                       | 5,527  |   |   |   | 100 | % |   | $ | 8,996 |   |   |   | 100 | % |
| Cost                of revenue                     |   |                                    | 3,841  |   |   |   | 69.5 | % |   |   | 6,532 |   |   |   | 72.6 | % |
| Gross                profit                        |   |                                    | 1,686  |   |   |   | 30.5 | % |   |   | 2,464 |   |   |   | 27.4 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative |   |                                    | 1,080  |   |   |   | 16.3 | % |   |   | 1,802 |   |   |   | 20.0 | % |
| Depreciation                and amortization       |   |                                    | 41     |   |   |   | 0.7 | % |   |   | 115 |   |   |   | 1.3 | % |
| Total                operating expenses            |   |                                    | 1,121  |   |   |   | 17.1 | % |   |   | 1,914 |   |   |   | 21.3 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                operating income            |   | $                                       | 565    |   |   |   | 13.4 | % |   | $ | 547 |   |   |   | 6.1 | % |

----

Index

|                                               |   | Three Month Period Ended |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|
|                                               |   | November 30, 2007             |   |   | November 30, 2006 |   |
|                                               |   | (Dollars                in thousands)   |   |
| Revenue                                            |   | $                                       | 11,580 |   |   |   | 100 | % |   | $ | 12,747 |   |   |   | 100 | % |
| Cost                of revenue                     |   |                                    | 10,258 |   |   |   | 88.6 | % |   |   | 11,243 |   |   |   | 88.2 | % |
| Gross                profit                        |   |                                    | 1,322  |   |   |   | 11.4 | % |   |   | 1,504 |   |   |   | 11.8 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative |   |                                    | 815    |   |   |   | 6.5 | % |   |   | 773 |   |   |   | 6.1 | % |
| Depreciation                and amortization       |   |                                    | 4      |   |   |   | 0.1 | % |   |   | 138 |   |   |   | 1.1 | % |
| Total                operating expenses            |   |                                    | 819    |   |   |   | 6.6 | % |   |   | 911 |   |   |   | 7.1 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                operating income            |   | $                                       | 503    |   |   |   | 4.8 | % |   | $ | 593 |   |   |   | 4.7 | % |

|                                               |   | Three Month Period Ended |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|
|                                               |   | November 30, 2007             |   |   | November 30, 2006 |   |
|                                               |   | (Dollars                in thousands)   |   |
| Revenue                                            |   | $                                       | 3,266  |   |   |   | 100 | % |   | $ | 3,049 |   |   |   | 100 | % |
| Cost                of revenue                     |   |                                    | 1,882  |   |   |   | 57.6 | % |   |   | 1,723 |   |   |   | 56.5 | % |
| Gross                profit                        |   |                                    | 1,384  |   |   |   | 42.4 | % |   |   | 1,326 |   |   |   | 43.5 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative |   |                                    | 1,301  |   |   |   | 38.7 | % |   |   | 1,134 |   |   |   | 37.2 | % |
| Depreciation                and amortization       |   |                                    | 70     |   |   |   | 2.1 | % |   |   | 109 |   |   |   | 3.6 | % |
| Total                operating expenses            |   |                                    | 1,371  |   |   |   | 40.8 | % |   |   | 1,243 |   |   |   | 40.8 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                operating income            |   | $                                       | 13     |   |   |   | 1.6 | % |   | $ | 83 |   |   |   | 2.7 | % |

----

Index

|                                               |   | Three Month Period Ended |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|
|                                               |   | November 30, 2007             |   |   | November 30, 2006 |   |
|                                               |   | (Dollars                in thousands)   |   |
| Revenue                                            |   | $                                       | 3,013  |   |   |   | 100 | % |   | $ | 4,257 |   |   |   | 100 | % |
| Cost                   of revenue                  |   |                                    | 2,611  |   |   |   | 86.7 | % |   |   | 3,231 |   |   |   | 75.9 | % |
| Gross                profit                        |   |                                    | 402    |   |   |   | 13.3 | % |   |   | 1,026 |   |   |   | 24.1 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative |   |                                    | 425    |   |   |   | 12.9 | % |   |   | 666 |   |   |   | 15.6 | % |
| Depreciation                and amortization       |   |                                    | 14     |   |   |   | 0.1 | % |   |   | 23 |   |   |   | 0.5 | % |
| Total                operating expenses            |   |                                    | 439    |   |   |   | 13.4 | % |   |   | 689 |   |   |   | 16.2 | % |
|                                               |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                operating income (loss)     |   | $                                       | (37    | ) |   |   | (0.1 | %) |   | $ | 337 |   |   |   | 7.9 | % |

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Index

|                                              |   | Payments Due By             |   |
|---------------------------------------------------|--------|---------------------------------------|--------|
| Contractual                obligation             |   | Total                                 |   |   | Less than 1year |   |   | 1-2 years |   |   | 3-5 years |   |   | More than 5years |   |
|                                              |   | (Dollars                in thousands) |   |
| Debt                and capital lease obligations |   | $                                     | 45,930 |   |   | $ | 20,987 |   |   | $ | 9,314 |   |   | $ | 15,629 |   |   | $ | - |   |
| Operating                lease (1)                |   |                                  | 15,716 |   |   |   | 2,097 |   |   |   | 1,997 |   |   |   | 5,189 |   |   |   | 6,433 |   |
|                                              |   |                                  | 9      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
| Total                                             |   | $                                     | 61,646 |   |   | $ | 23,084 |   |   | $ | 11,311 |   |   | $ | 20,818 |   |   | $ | 6,433 |   |

|   | (1) | Operating                leases represent the total future minimum lease payments, and are                primarily comprised of lease obligations between the Company and                the VIE.                This operating lease expense is eliminated in the Company’s consolidated                statement of operations. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 31.1 | Rule                15d-14(a) Certification of CEO |
|------|----------------------------------------------------|

| 31.2 | Rule                15d-14(a) Certification of CFO |
|------|----------------------------------------------------|

| 32.1 | Section                1350 Certification of CEO |
|------|--------------------------------------------------|

| 32.2 | Section                1350 Certification of CFO |
|------|--------------------------------------------------|

IG

|                                              | Fortune                Industries, Inc. |
|---------------------------------------------------|-----------------------------------------|
|                                              | (Registrant)                            |
|                                              |                                    |
| Date:  January                14 , 2008 | By:                /s/ John F. Fisbeck  |   |
|                                              | John                F. Fisbeck,         |
|                                              | Chief                Executive Officer  |
|                                              |                                    |
|                                              |                                    |
| Date:  January                14, 2008  | By:                /s/ Garth A. Allred  |  |
|                                              | Garth                A Allred,          |
|                                              | Chief                Financial Officer  |

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