| Class                              | Shares Outstanding at November 13,      2008                      |
|------------------------------------|-------------------------------------------------------------------|
| Common      Stock, $0.10 Par Value | 6,294,332      (excluding 659,900 shares held as treasury  stock) |

----

|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
|------------------------------------------|---------------------------------|---------------------------|------------|---------------------------------------|--------------------|---------------------------------------|---------------------------------------------------------------------------------------------|
|                                     |                            |                      |       |                                  | September      30, |                                  | June      30,                                                                               |
|                                     |                            |                      |       |                                  | 2008               |                                  | 2008                                                                                        |
|                                     |                            |                      |       |                                  | (Unaudited)        |                                  | (Derived      from                                                                          |
| ASSETS                                   |                            |                      |       |                                  |               |                                  |                  Audited Statements) |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
| Current      Assets                      |                            |                      |       |                                  |               |                                  |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
|                                     | Cash      and cash equivalents  |                      |       | $     25,649 |               | $     14,444 |
|                                     | Accounts      receivable - net  |                      | 28,023,818 |                                  | 32,591,064         |
|                                     | Inventories      - net          |                      |       | 33,195,394                            |               | 34,602,641                            |
|                                     | Prepaid      expenses and other |                      | 1,161,056  |                                  | 1,727,707          |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
|                                     |                            | Total      current assets |       | 62,405,917                            |               | 68,935,856                            |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
| Property,      plant and equipment - net |                            | 911,707                   |       | 1,005,047                             |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
| Goodwill                                 |                            |                      |       |                                  | 1,952,791          |                                  | 16,916,087                                                                                  |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
| Other      Assets                        |                            |                      |       | 1,835,873                             |               | 2,267,236                             |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
|                                     |                            |                      |       |                                  |               |                                  |                                                                                        |
| Total      Assets                        |                            |                      |       | $67,106,288                           |               | $89,124,226                           |

----

|                                                                              |   | September      30, |        |   | June      30,            |   |
|-----------------------------------------------------------------------------------|--------|--------------------|-------------|--------|--------------------------|--------|
|                                                                              |   | 2008               |        |   | 2008                     |   |
|                                                                              |   | (Unaudited)        |        |   | (Derived      from       |   |
| LIABILITIES      & SHAREHOLDERS' EQUITY                                       |   |               |        |   | Audited      Statements) |   |
|                                                                              |   |               |        |   |                     |   |
| Current      Liabilities                                                          |   |               |        |   |                     |   |
|                                                                              |   |               |        |   |                     |   |
|           Accounts payable and accrued expenses               |   | $                  | 29,596,449  |   |                     | $      | 33,399,675 |   |
|           Current maturities of long-term debt and            |   |               |        |   |                     |   |   |   |
|      capitalized      lease obligations                  |   |               | 28,273,479  |   |                     |   | 31,409,953 |   |
| Income      taxes payable                                                         |   |               | -           |   |                     |   | 13,769 |   |
|                                                                              |   |               |        |   |                     |   |   |   |
| Total      current liabilities                                                    |   |               | 57,869,928  |   |                     |   | 64,823,397 |   |
|                                                                              |   |               |        |   |                     |   |   |   |
|                                                                              |   |               |        |   |                     |   |   |   |
| Deferred      compensation                                                        |   |               | 1,212,490   |   |                     |   | 1,200,001 |   |
|                                                                              |   |               |        |   |                     |   |   |   |
| Total      liabilities                                                            |   |               | 59,082,418  |   |                     |   | 66,023,398 |   |
|                                                                              |   |               |        |   |                     |   |   |   |
|  Commitments      and Contngencies ( Notes 2,3,4,8 and 9)                    |   |               |        |   |                     |   |   |   |
|                                                                              |   |               |        |   |                     |   |   |   |
| SHAREHOLDERS'      EQUITY                                                         |   |               |        |   |                     |   |   |   |
|                                                                              |   |               |        |   |                     |   |   |   |
|                                                                              |   |               |        |   |                     |   |   |   |
|           Preferred stock - authorized, 100,000 shares,       |   |               |        |   |                     |   |   |   |
|   $10      par value; none issued                                       |   |               | -           |   |                     |   | - |   |
|           Common stock - authorized, 20,000,000 shares,       |   |               |        |   |                     |   |   |   |
|             $.10 par value; 6,954,232 shares issued |   |               |        |   |                     |   |   |   |
|            and 6,294,332 shares outstanding              |   |               | 695,423     |   |                     |   | 695,423 |   |
| Additional      paid-in capital                                                   |   |               | 27,270,585  |   |                     |   | 27,236,361 |   |
| Accumulated      Deficit                                                          |   |               | (17,627,572 | )      |                     |   | (2,516,390 | ) |
|      Treasury      stock – 659,900 shares at cost  |   |               | (2,314,566  | )      |                     |   | (2,314,566 | ) |
|                                                                              |   |               |        |   |                     |   |   |   |
| Total      shareholders' equity                                                   |   |               | 8,023,870   |   |                     |   | 23,100,828 |   |
|                                                                              |   |               |        |   |                     |   |   |   |
|                                                                              |   |               |        |   |                     |   |   |   |
|      Total      liabilities and shareholders' equity     |   | $                  | 67,106,288  |   |                     | $      | 89,124,226 |   |

----

|                                                                                                                   |   |   |        2008 | 2007       |   |       |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------|------------|--------|------------|
| Net      sales                                                                                                         |   |   | $                | 47,816,236 |   | $          | 49,010,330 |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| Cost      of goods sold                                                                                                |   |   | 39,340,881       |       |   | 40,989,562 |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
|              Gross      profit                        |   |   | 8,475,355        |       |   | 8,020,768  |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| Selling,      general and administrative expenses                                                                      |   |   | 7,763,617        |       |   | 7,572,528  |   |
| Impairment      of goodwill and intangible assets                                                                      |   |   | 15,376,678       |       |   | -          |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |
|              Operating      (loss) profit             |   |   | (14,664,940)     |       |   | 448,240    |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| Interest      expense                                                                                                  |   |   | 436,519          |       |   | 615,361    |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
|                    Loss before income taxes           |   |   | (15,101,459)     |       |   | (167,121   | ) |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| Income      tax provision                                                                                              |   |   | 9,723            |       |   | 13,613     |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
|              Net      loss                            |   | $      | (15,111,182)     |       | $      | (180,734   | ) |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| PER      SHARE INFORMATION                                                                                             |   |   |             |       |   |       |   |   |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| Basic      and diluted loss per common share:                                                                          |   | $      | (2.40)           |       | $      | (0.03      | ) |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |
| Weighted      average common sharesand      common equivalent shares outstanding:                                      |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |   |
|                      Basic      and diluted |   |   |             | 6,294,332  |   |       |               6,294,332  |   |       |
|                                                                                                                   |   |   |             |       |   |       |   |   |   |   |

----

| FORM      10-Q                                                                                                                                                                                                                                                                                                       |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   | September      30, 2008                                                                                                               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| Page      5                                                                                                                                                                                                                                                                                                          |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
| JACO      ELECTRONICS, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                         |
| CONDENSED      CONSOLIDATED STATEMENT OF CHANGES                                                                                                                                                                                                                                                                     |
|                                      IN SHAREHOLDERS' EQUITY                                                                                              |                                                                                                                      |   |
|                                            FOR      THE THREE MONTHS ENDED SEPTEMBER 30, 2008 |                                                                                                                      |   |
|                                              (UNAUDITED)                                                          |                                                                                                                      |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   | Additional                                                                                                                            |   |                                                                                                                                                                |     |   |                                                                                                                                  |   | Total |
|                                                                                                                                                                                                                                                                                                                 |             Common      stock                                 |   | paid-in                                                                                                 |   | Accumulated                                                                                                                           |   |                                                                                                                                                                | Treasury |   | shareholders'                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                 |      Shares                                                                                      |   |   Amount                                                                                      |   | capital                                                                                                                               |   | deficit                                                                                                                                                             |     |   |   stock                                                                                                                     |   | equity |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
| Balance      at July 1, 2008                                                                                                                                                                                                                                                                                         | 6,954,232                                                                                                                 |   |  $     695,423                                                            |   |  $     27,236,361                                                                                       |   |  $          (2,516,390)                                                                                      |     |   |  $    (2,314,566)                                                                                            |   |  $      23,100,828 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
| Stock      - based compensation                                                                                                                                                                                                                                                                                      |                     - |   |                  - |   |                34,224                                      |   |                            - |     |   |                       - |   |                 34,224 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
| Net      loss                                                                                                                                                                                                                                                                                                        |                     - |   |                  - |   |                       - |   |            (15,111,182)                                                                                      |     |   |                       - |   |        (15,111,182) |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
| Balance      at September 30, 2008                                                                                                                                                                                                                                                                                   | 6,954,232                                                                                                                 |   |  $     695,423                                                            |   |  $     27,270,585                                                                                       |   |  $        (17,627,572)                                                                                                 |     |   |  $    (2,314,566)                                                                                            |   |  $        8,023,870 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                      |   |                                                                                                    |   |                                                                                                                                  |   |                                                                                                                                                                |     |   |                                                                                                                                  |   |   |
| See      accompanying notes to condensed consolidated financial      statements.                                                                                                                                                                                                                                     |

----

|                                                                                                                   |   |        2008 | 2007        |   |   |
|------------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|--------|
| Cash      flows from operating activities                                                                              |   |             |        |   |
|       Net      loss                                                                      |   | $                | (15,111,182 | )      |   | $ | (180,734 | ) |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Adjustments      to reconcile net loss to net                                                                          |   |             |        |   |   |   |   |   |   |
|      cash      provided by operating activities                                               |   |             |        |   |   |   |   |   |   |
|           Impairment      of goodwill and intangible assets          |   |             | 15,376,678  |   |   |   | - |   |
|           Depreciation      and amortization                         |   |             | 136,097     |   |   |   | 178,455 |   |
|           Deferred      compensation                                 |   |             | 12,489      |   |   |   | 12,502 |   |
|           Stock-based      compensation                              |   |             | 34,224      |   |   |   | 28,727 |   |
|           Provision      for doubtful accounts                       |   |             | 374,697     |   |   |   | 406,385 |   |
|           Changes      in operating assets and liabilities           |   |             |        |   |   |   |   |   |   |
|             Decrease      in operating assets - net        |   |             | 6,141,672   |   |   |   | 11,207,564 |   |
|            (Decrease)      in operating liabilities – net |   |             | (3,816,996  | )      |   |   | (6,442,991 | ) |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
|           Net      cash provided by operating activities             |   |             | 3,147,679   |   |   |   | 5,209,908 |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Cash      flows from investing activities                                                                              |   |             |        |   |   |   |   |   |   |
| Capital      expenditures                                                                                              |   |             | -           |   |   |   | - |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
|           Net      cash used in investing activities                 |   |             | -           |   |   |   | - |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Cash      flows from financing activities                                                                              |   |             |        |   |   |   |   |   |   |
|            Borrowings      under line of credit                 |   |             | 49,644,903  |   |   |   | 50,930,056 |   |
| Repayments      under line of credit                                                                                   |   |             | (52,766,773 | )      |   |   | (56,061,822 | ) |
| Principal      payments under equipment financing                                                                      |   |             | (14,604     | )      |   |   | (12,535 | ) |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Net      cash used in financing activities                                                                             |   |             | (3,136,474  | )      |   |   | (5,144,301 | ) |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Net      increase in cash                                                                                              |   |             | 11,205      |   |   |   | 65,607 |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Cash      at beginning of period                                                                                       |   |             | 14,444      |   |   |   | 15,713 |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Cash      at end of period                                                                                             |   | $                | 25,649      |   |   | $ | 81,320 |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |
| Supplemental      disclosures of cash flow information:                                                                |   |             |        |   |   |   |   |   |   |
|      Cash      paid during the period for:                                                    |   |             |        |   |   |   |   |   |   |
|              Interest                                 |   | $                | 437,000     |   |   | $ | 615,000 |   |
|              Income      taxes                        |   |             | 10,000      |   |   | $ | 28,000 |   |
|                                                                                                                   |   |             |        |   |   |   |   |   |   |

----

----

----

----

|                                                |   |                                  |                                             |                                |                          |   |   |                                              |   |                                                                                                                 |   |   |
|-----------------------------------------------------|--------|---------------------------------------|--------------------------------------------------|-------------------------------------|-------------------------------|--------|--------|---------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                |   |                                  | Options     Outstanding |                                | Weighted-AverageExercisePrice |   |   | Weighted-AverageRemainingContractualTerm (months) |   |
|                                                |   |                                  |                                             |                                |                          |   |   |                                              |   |
|                                                |   |                                  |                                             |                                |                          |   |   |                                              |   |                                                                                                                 |   |
| Options      outstanding at June 30, 2008      |   |                                  | 689,750                                          |                                |                          | $4.41  |   |                                              |   |                                                                                                                 |   |
| Granted                                             |   |                                  | -                                                |                                |                          | -      |   |                                              |   |                                                                                                                 |   |
| Exercised                                           |   |                                  | -                                                |                                |                          | -      |   |                                              |   |                                                                                                                 |   |
| Forfeited                                           |   |                                  | -                                                |                                |                          | -      |   |                                              |   |                                                                                                                 |   |
|                                                |   |                                  |                                             |                                |                          |   |   |                                              |
| Options      outstanding at September 30, 2008 |   |                                  | 689,750                                          |                                |                          | $4.41  |   |                                              |   |                         65 |   |
| Options      exercisable at September 30, 2008      |   |           466,875 |                                             |          $5.16       |                          |   | 52     |                                              |
|                                                |   |                                  |                                             |                                |                          |   |   |                                              |
| Nonvested      Stock Options:                       |   |                                  |                                             |                                |                          |   |   |                                              |
| Nonvested      at June 30, 2008                |   |          222,875       |                                             |          $2.86       |                          |   |   |                                              |
| Granted                                             |   | -                                     |                                             | -                                   |                          |   |   |                                              |
| Vested                                              |   | -                                     |                                             | -                                   |                          |   |   |                                              |
| Forfeited                                           |   | -                                     |                                             | -                                   |                          |   |   |                                              |
|                                                |   |                                  |                                             |                                |                          |   |   |                                              |
| Nonvested      at September 30, 2008           |   |           222,875 |                                             |           $2.86 |                          |   |   |                                              |
|                                                |   |                                  |                                             |                                |                          |   |   |                                              |

|                                                                                                      |  Three      Months Ended                                                                                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                      |                                                         September 30, |
|                                                                                                      | 2008                                                                                                                                                                                                                                                                                                                            | 2007 |
| Weighted      average common shares outstanding net of treasury shares, for basic      earnings per share |                   6,294,332                                                                                                                                                                                                           |              6,294,332 |
|                                                                                                      |                                                                                                                                                                                                                                                                                                                            |   |
| Effect      of dilutive securities                                                                        | -                                                                                                                                                                                                                                                                                                                               | - |
|                                                                                                      |                                                                                                                                                                                                                                                                                                                            |   |
| Weighted      average common shares outstanding for diluted earnings per      share                       |                  6,294,332                                                                                                                                                                                                                 |                 6,294,332 |

----

|                           |   |   | Three Months      Ended     |
|--------------------------------|--------|--------|----------------------------------|
|                           |   |   |   March      31,  |
|                           |   |   | 2008                        |   |   |   | 2007  |   |
| Semiconductors                 |   | $      | 15,712,000                       |   |   | $ | 20,384,000 |   |
| Flat      Panel Displays       |   |   | 22,254,000                       |   |   |   | 15,258,000 |   |
| Passive      Components        |   |   | 6,929,000                        |   |   |   | 9,333,000 |   |
| Electromechanical      Devices |   |   | 2,921,000                        |   |   |   | 4,035,000 |   |
|                           |   |   |                             |   |   |   |   |   |
|                           |   | $      | 47,816,000                       |   |   | $ | 49,010,000 |   |

----

----

----

----

|                                              |   | Three      Months EndedSeptember      30, |
|---------------------------------------------------|--------|-------------------------------------------|
|                                              |   | 2008                                      |   |   |                  2007 |   |   |   |
| Net      sales                                    |   |                                      | 100.0 | % |   |   | 100.0 | % |
| Cost      of goods sold                           |   |                                      | 82.3 |   |   |   | 83.6 |   |
| Gross      profit                                 |   |                                      | 17.7 |   |   |   | 16.4 |   |
| Selling,      general and administrative expenses |   |                                      | 16.2 |   |   |   | 15.5 |   |
| Impairment      of goodwill and intangible assets |   |                                      | 32.2 |   |   |   | - |   |
| Operating      (loss) profit                      |   |                                      | (30.7 | ) |   |   | .9 |   |
| Interest      expense                             |   |                                      | 0.9 |   |   |   | 1.3 |   |
| Loss before      income taxes                |   |                                      | (31.6 | ) |   |   | (0.4 | ) |
| Income      tax provision                         |   |                                      | 0.0 |   |   |   | 0.0 |   |
| Net      loss                                     |   |                                      | (31.6 | )% |   |   | (0.4 | )% |

----

----

----

|   | Contractual      Obligations |
|--------|------------------------------|

|                 | Total                                                        | < 1 Year                                                  | 1 to 3 Years     | 3 to 5 Years     | > 5 Years |
|----------------------|--------------------------------------------------------------|--------------------------------------------------------------|------------------|------------------|--------------|
|                 |                                                         |                                                         |             |             |         |
| Bank      Debt       | $28,253,118                                                  | $28,253,118                                                  |             |             |         |
| Capital      Lease   |          20,361 |               20,361 |             |             |         |
| Operating      Lease |    5,230,980                                  |    1,233,579                                  |   2,855,892 |   1,141,509 | -            |
|  Total          |  $33,504,459                                            |  $29,507,058                                            |  $2,855,892 |  $1,141,509 |         |

|   | Item      3. Quantitative and Qualitative Disclosures About Market    Risk. |
|--------|-----------------------------------------------------------------------------|

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