| Class                              | Shares Outstanding at      May 14, 2008                           |
|------------------------------------|-------------------------------------------------------------------|
| Common      Stock, $0.10 Par Value | 6,294,332      (excluding 659,900 shares held as treasury  stock) |

----

|                                     |                                                          |   |           |       |                     |       |
|------------------------------------------|---------------------------------------------------------------|--------|----------------|------------|--------------------------|------------|
|                                     |                                                          |   | March      31, |       | June      30,            |       |
|                                     |                                                          |   | 2008           |       | 2007                     |       |
|                                     |                                                          |   | (Unaudited)    |       | (Derived      from       |       |
| ASSETS                                   |                                                          |   |           |       | Audited      Statements) |       |
|                                     |                                                          |   |           |       |                     |       |
| Current      Assets                      |                                                          |   |           |       |                     |
|                                     |                                                          |   |           |       |                     |       |
|                                     | Cash                                                          |   | $              | 11,319     |                     | $          | 15,713 |   |
|                                     | Accounts      receivable - net                                |   |           | 28,282,910 |                     |       | 35,752,247 |   |
|                                     | Inventories      - net                                        |   |           | 31,078,783 |                     |       | 30,364,720 |   |
|                                     | Prepaid      expenses and other                               |   |           | 1,197,515  |                     |       | 551,159 |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
|                                     |            Total      current assets |   |           | 60,570,527 |                     |       | 66,683,839 |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
| Property,      plant and equipment - net |                                                          |   | 1,121,474      |       |                     | 1,433,286  |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
| Goodwill                                 |                                                          |   |           | 25,416,087 |                     |       | 25,416,087 |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
| Other      Assets                        |                                                          |   | 2,468,914      |       |                     | 2,553,345  |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
|                                     |                                                          |   |           |       |                     |       |   |   |
| Total      Assets                        |                                                          | $      | 89,577,002     |       | $                        | 96,086,557 |   |

----

|                                                             |   | March      31, |       |   | June      30,            |   |
|------------------------------------------------------------------|--------|----------------|------------|--------|--------------------------|--------|
|                                                             |   | 2008           |       |   | 2007                     |   |
|                                                             |   | (Unaudited)    |       |   | (Derived      from       |   |
| LIABILITIES      & SHAREHOLDERS' EQUITY                      |   |           |       |   | Audited      Statements) |   |
|                                                             |   |           |       |   |                     |   |
| Current      Liabilities                                         |   |           |       |   |                     |   |
|                                                             |   |           |       |   |                     |   |
| Accounts      payable and accrued expenses                       |   | $              | 21,933,954 |   |                     | $      | 24,999,242 |   |
| Current      maturities of long-term debt and                    |   |           |       |   |                     |   |   |   |
|      capitalized      lease obligations |   |           | 34,974,172 |   |                     |   | 37,772,069 |   |
|        Income taxes payable                                 |   |           | 9,921      |   |                     |   | 15,657 |   |
|                                                             |   |           |       |   |                     |   |   |   |
|  Total      current liabilities                             |   |           | 56,918,047 |   |                     |   | 62,786,968 |   |
|                                                             |   |           |       |   |                     |   |   |   |
| Long-term      debt and capitalized lease obligations            |   |           | -          |   |                     |   | 34,966 |   |
|                                                             |   |           |       |   |                     |   |   |   |
| Deferred      compensation                                       |   |           | 1,187,504  |   |                     |   | 1,150,000 |   |
|                                                             |   |           |       |   |                     |   |   |   |
| Total      liabilities                                           |   |           | 58,105,551 |   |                     |   | 63,971,934 |   |
|                                                             |   |           |       |   |                     |   |   |   |
|  Commitments      and Contingencies                    |   |           |       |   |                     |   |   |   |
|                                                             |   |           |       |   |                     |   |   |   |
| 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                           |   |           | 27,207,633 |   |                     |   | 27,114,567 |   |
| Retained      earnings                                           |   |           | 5,882,961  |   |                     |   | 6,619,199 |   |
| Treasury      stock - 659,900 shares at cost                     |   |           | (2,314,566 | )      |                     |   | (2,314,566 | ) |
|                                                             |   |           |       |   |                     |   |   |   |
|        Total shareholders' equity                           |   |           | 31,471,451 |   |                     |   | 32,114,623 |   |
|                                                             |   |           |       |   |                     |   |   |   |
|                                                             |   |           |       |   |                     |   |   |   |
| Total      liabilities and shareholders' equity                  |   | $              | 89,577,002 |   |                     | $      | 96,086,557 |   |

----

|                                                                                              |    |   |            2008                   2007 |       |
|---------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| Net      sales                                                                                    |    |   | $                                                                                                                                                    | 44,459,837 |   |   | $ | 49,890,362 |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Cost      of goods sold                                                                           |    |   | 37,263,555                                                                                                                                           |       |   |   | 42,110,385 |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|              Gross      profit   |    |   | 7,196,282                                                                                                                                            |       |   |   | 7,779,977 |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Selling,      general and administrative expenses                                                 |    |   | 7,279,986                                                                                                                                            |       |   |   | 7,920,780 |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|              Operating      loss |    |   | (83,704                                                                                                                                              | )          |   |   | (140,803 | ) |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Interest      expense                                                                             |    |   |                                                                                                                                                 | 498,745    |   |   |   | 590,697 |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|         Loss      before income taxes                     |    |   | (582,449                                                                                                                                             | )          |   |   | (731,500 | ) |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Income      tax provision                                                                         |    |   | 12,270                                                                                                                                               |       |   |   | 15,000 |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|              Net      loss       |    | $      | (594,719                                                                                                                                             | )          |   | $ | (746,500 | ) |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| PER      SHARE INFORMATION                                                                        |    |   |                                                                                                                                                 |       |   |   |   |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Basic      loss per common share:                                                                 |    | $      | (.09                                                                                                                                                 | )          |   | $ | (.12 | ) |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Diluted      loss per common share:                                                               |    | $      | (.09                                                                                                                                                 | )          |   | $ | (.12 | ) |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
| Weighted      average common sharesand      common equivalent shares outstanding:                 |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|                                                                                              | Basic   |   |                                                                                                                                                 | 6,294,332  |   |   |   |   6,294,332  |   |
|                                                                                              |    |   |                                                                                                                                                 |       |   |   |   |   |   |
|                                                                                              | Diluted |   |                                                                                                                                                 | 6,294,332  |   |   |   |    6,294,332  |   |

----

|                                                                                                |    |   | 2008        |      |   | 2007   |        |
|-----------------------------------------------------------------------------------------------------|---------|--------|-------------|-----------|--------|--------|-------------|
| Net      sales                                                                                      |    | $      | 142,877,855 |      |   | $      | 185,497,686 |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Cost      of goods sold                                                                             |    |   | 119,596,638 |      |   |   | 160,544,514 |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|              Gross      profit     |    |   | 23,281,217  |      |   |   | 24,953,172  |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Selling,      general and administrative expenses                                                   |    |   | 22,324,902  |      |   |   | 23,122,891  |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|              Operating      profit |    |   | 956,315     |      |   |   | 1,830,281   |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Interest      expense                                                                               |    |   | 1,654,394   |      |   |   | 2,130,642   |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|         Loss      before income taxes                       |    |   | (698,079    | )         |   |   | (300,361    | ) |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Income      tax provision                                                                           |    |   | 38,159      |      |   |   | 45,000      |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|              Net      loss         |    | $      | (736,238    | )         |   | $      | (345,361    | ) |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| PER      SHARE INFORMATION                                                                          |    |   |        |      |   |   |        |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Basic      loss per common share:                                                                   |    | $      | (.12        | )         |   | $      | (.05        | ) |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Diluted      loss per common share:                                                                 |    | $      | (.12        | )         |   | $      | (.05        | ) |
|                                                                                                |    |   |        |      |   |   |        |   |   |
| Weighted      average common shares and common      equivalent shares outstanding:                  |    |   |        |      |   |   |        |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|                                                                                                | Basic   |   |        | 6,294,332 |   |   |        | 6,294,332 |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |
|                                                                                                | Diluted |   |        | 6,294,332 |   |   |        | 6,294,332 |   |
|                                                                                                |    |   |        |      |   |   |        |   |   |

----

| FORM      10-Q                                                                                                                                                                                                                                                                   |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   | March      31, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|---------|--------|---------|------------|--------|--------|------------|--------|--------|---------------|-----------|--------|---------------------|--------|
| Page      6                                                                                                                                                                                                                                                                      |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
| JACO      ELECTRONICS, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                     |
| CONDENSED      CONSOLIDATED STATEMENT OF CHANGES                                                                                                                                                                                                                                 |
| IN      SHAREHOLDERS' EQUITY                                                                                                                                                                                                                                                     |
| FOR      THE NINE MONTHS ENDED MARCH 31, 2008                                                                                                                                                                                                                                    |
| (UNAUDITED)                                                                                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    | Additional |   |   |       |   |   |          |      |   | Total               |   |
|                                                                                                                                                                                                                                                                             |   | Common      stock |      |   | paid-in |   |    | Retained   |   |   | Treasury   |   |   | shareholders' |      |
|                                                                                                                                                                                                                                                                             |   | Shares            |      |   | Amount  |   |    | capital    |   |   | earnings   |   |   | stock         |      |   | equity              |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |
| Balance      at July 1, 2007                                                                                                                                                                                                                                                     |   |              | 6,954,232 |   |    | $      | 695,423 |       |   | $      | 27,114,567 |   |   | $             | 6,619,199 |   |                | $      | (2,314,566 | ) |   | $ | 32,114,623 |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |   |   |   |   |   |   |
| Stock-based      compensation                                                                                                                                                                                                                                                    |   |              |      |   |    |   |    |       |   |   | 93,066     |   |   |          |      |   |                |   |   |   |   |   | 93,066 |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                                                                                                                    |   |              |      |   |    |   |    |       |   |   |       |   |   |          | (736,238  | )      |                |   |   |   |   |   | (736,238 | ) |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |   |   |   |   |   |   |
| Balance      at March 31, 2008                                                                                                                                                                                                                                                   |   |              | 6,954,232 |   |    | $      | 695,423 |       |   | $      | 27,207,633 |   |   | $             | 5,882,961 |   |                | $      | (2,314,566 | ) |   | $ | 31,471,451 |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                             |   |              |      |   |    |   |    |       |   |   |       |   |   |          |      |   |                |   |   |   |   |   |   |   |
|                                 See      accompanying notes to condensed consolidated financial      statements. |   |              |      |   |    |   |

----

|                                                                                                                   |   |   | 2008         |   |  2007 |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|------------|
| Cash      flows from operating activities                                                                              |   |   |         |   |
|       Net      loss                                                                      |   | $      | (736,238     | )      | $          | (345,361 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Adjustments      to reconcile net loss to net                                                                          |   |   |         |   |       |   |   |   |
|      cash      provided by operating activities                                               |   |   |         |   |       |   |   |   |
|                 Depreciation  and amortization             |   |   | 518,271      |   |       | 547,803 |   |
|                 Deferred compensation                                |   |   | 37,504       |   |       | 37,499 |   |
|                 Stock-based compensation                             |   |   | 93,066       |   |       | 35,840 |   |
|                 Provision for doubtful accounts                      |   |   | (380,891     | )      |       | (225,607 | ) |
|                 Changes in operating assets and liabilities          |   |   |         |   |       |   |   |   |
|            Decrease      in operating assets - net              |   |   | 6,445,772    |   |       | 6,628,185 |   |
|            (Decrease)      in operating liabilities – net |   |   | (3,071,024   | )      |       | (6,214,523 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
|           Net      cash provided by operating activities             |   |   | 2,906,460    |   |       | 463,836 |   |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Cash      flows from investing activities                                                                              |   |   |         |   |       |   |   |   |
| Capital      expenditures                                                                                              |   |   | (77,991      | )      |       | (216,313 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
|                  Net cash used in investing activities          |   |   | (77,991      | )      |       | (216,313 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Cash      flows from financing activities                                                                              |   |   |         |   |       |   |   |   |
|                  Borrowings under line of credit                |   |   | 147,893,470  |   |       | 197,553,467 |   |
| Repayments      under line of credit                                                                                   |   |   | (150,687,245 | )      |       | (197,778,943 | ) |
| Principal      payments under equipment financing                                                                      |   |   | (39,088      | )      |       | (33,549 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Net      cash used in financing activities                                                                             |   |   | (2,832,863   | )      |       | (259,025 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Net      decrease in cash                                                                                              |   |   | (4,394       | )      |       | (11,502 | ) |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Cash      at beginning of period                                                                                       |   |   | 15,713       |   |       | 29,211 |   |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Cash      at end of period                                                                                             |   | $      | 11,319       |   | $          | 17,709 |   |
|                                                                                                                   |   |   |         |   |       |   |   |   |
|                                                                                                                   |   |   |         |   |       |   |   |   |
| Supplemental      disclosures of cash flow information:                                                                |   |   |         |   |       |   |   |   |
|      Cash      paid during the year for:                                                      |   |   |         |   |       |   |   |   |
|              Interest                                 |   | $      | 1,654,000    |   | $          | 2,131,000 |   |
|              Income      taxes                        |   |   | 43,000       |   |       | 65,000 |   |
|                                                                                                                   |   |   |         |   |       |   |   |   |

----

----

----

----

|                                                  |   |        |               |   |      |   |   | Weighted-     |   |
|-------------------------------------------------------|--------|-------------|--------------------|--------|-----------|--------|--------|---------------|--------|
|                                                  |   |        |               |   | Weighted- |   |   | Average       |   |
|                                                  |   |        |               |   | Average   |   |   | Remaining     |   |
|                                                  |   | Options     |               |   | Exercise  |   |   | Contractual   |   |
|                                                  |   | Outstanding |               |   | Price     |   |   | Term (months) |   |
| Employee      Stock Option Plans:                     |   |        |               |   |      |   |   |          |   |
| Options      outstanding at June 30, 2007        |   |        | 624,250            |   |      | $      | 4.74   |          |   |   |   |
| Granted                                               |   |        |        87,500 |   |      |   | 1.90   |          |   |   |   |
| Exercised                                             |   |        | -                  |   |      |   | -      |          |   |   |   |
| Canceled                                              |   |        | -                  |   |      |   | -      |          |   |   |   |
|                                                  |   |        |               |   |      |   |   |          |   |   |   |
| Options      outstanding at March 31, 2008            |   |        | 711,750            |   |      | $      | 4.42   |          |   |   | 71 |   |
| Options      exercisable at March 31, 2008            |   |        | 482,125            |   |      | $      | 5.12   |          |   |   | 53 |   |
|                                                  |   |        |               |   |      |   |   |          |   |   |   |   |
| Nonvested      Stock Options:                         |   |        |               |   |      |   |   |          |   |   |   |   |
| Nonvested      options outstanding at January 1, 2008 |   |        | 229,625            |   |      | $      | 2.88   |          |   |   |   |   |
| Granted                                               |   |        | -                  |   |      |   | -      |          |   |   |   |   |
| Vested                                                |   |        | -                  |   |      |   | -      |          |   |   |   |   |
| Canceled      or expired                              |   |        | -                  |   |      |   | -      |          |   |   |   |   |
|                                                  |   |        |               |   |      |   |   |          |   |   |   |   |
| Nonvested      options outstanding at March 31, 2008  |   |        | 229,625            |   |      | $      | 2.88   |          |   |   |   |   |
|                                                  |   |        |               |   |      |   |   |          |   |   |   |   |

|                                                                                                       |   | Nine      Months Ended March      31, |      |               Nine      MonthsEnded                                  March      31, |
|------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                       |   | 2008                                       |      |            2007                              2008          |   |         2007 |   |
| Weighted      average common shares outstanding, net of treasury shares, for basic      earnings per share |   |                                       | 6,294,332 |                                                                                                                                                                                                                                      |   | 6,294,332 |   |   | 6,294,332 |   |   | 6,294,332 |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive securities                                                                         |   |                                       | -         |                                                                                                                                                                                                                                      |   | - |   |   | - |   |   | - |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Weighted      average common sharesOutstanding      for diluted earnings per share                         |   |                                       | 6,294,332 |                                                                                                                                                                                                                                      |   | 6,294,332 |   |   | 6,294,332 |   |   |                   6,294,332 |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                       |      |                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |

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|                           |   | Nine      Months Ended |        |   | Three Months      Ended |   |
|--------------------------------|--------|------------------------|-------------|--------|------------------------------|--------|
|                           |   | March      31,         |        |   | March      31,               |   |
|                           |   | 2008                   |        |   | 2007                         |   |   | 2008 |   |   |                    2007 |   |
|                           |   |                   |        |   |                         |   |   |   |   |   |   |   |
|  Semiconductors           |   | $                      | 55,784,000  |   |                         | $      | 104,484,000 |   |   | $ | 16,839,000 |   |   | $ | 23,836,000 |   |
| Flat      Panel Displays       |   |                   | 48,880,000  |   |                         |   | 43,704,000 |   |   |   | 14,870,000 |   |   |   | 13,486,000 |   |
| Passive      Components        |   |                   | 27,002,000  |   |                         |   | 27,057,000 |   |   |   | 9,236,000 |   |   |   | 9,240,000 |   |
| Electromechanical      Devices |   |                   | 11,212,000  |   |                         |   | 10,253,000 |   |   |   | 3,515,000 |   |   |   | 3,328,000 |   |
|                           |   |                   |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $                      | 142,878,000 |   |                         | $      | 185,498,000 |   |   | $ | 44,460,000 |   |   | $ | 49,890,000 |   |

----

----

----

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|                                                        |                 Three Months      Ended                           March      31, |                                                               |           Nine Months Ended                       March 31, |
|-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |         2008                                                                                                                                                                                        |                                                               |  2007                                                                                                                                                                                    |   | 2008 |   |  2007 |
| Net      sales                                              |               100.0%                                                                                                                                                                                |                100.0% |                                                                                                                                                                                          |         100.0% |   |  100.0% |
| Cost      of goods sold                                     |      83.8                                                                                                                                                                                                          |                                                               |                  84.4                                                                                                                       |   |              83.7 |   | 86.5 |
| Gross      profit                                           |      16.2                                                                                                                                                                                                          |                                                               |  15.6                                                                                                                                                                                    |   |         16.3 |   |          13.5 |
| Selling,      general and administrative      expenses |       16.4                                                                                                                                                                                                    |                                                               |         15.9                                                                                                                                                                        |   |         15.6 |   |               12.5 |
| Operating      profit (loss)                                |        (0.2)                                                                                                                                                                                             |                                                               |                 (0.3)                                                                                                                       |   |                0.7 |   |                 1.0 |
| Interest      expense                                       |        1.1                                                                                                                                                                                               |                                                               |                  1.2                                                                                                                   |   |           1.2 |   |                 1.2 |
| Loss      before income taxes                               |        (1.3)                                                                                                                                                                                             |                                                               |  (1.5)                                                                                                                                                                                   |   |               (0.5) |   |               (0.2) |
| Income      tax provision                                   |        0.0                                                                                                                                                                                               |                                                               |                  0.0                                                                                                                        |   |                0.0 |   |                0.0 |
| Net      loss                                               |                 (1.3)%                                                                                                                                                                    |                (1.5)%      |                                                                                                                                                                                          |              (0.5)% |   |               (0.2)% |

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|                  |   | Total  |       |   | < 1 Year |   |       | 1 to 3 Years |   |   | 3 to 5 Years |   |
|-----------------------|--------|--------|------------|--------|-------------|--------|------------|--------------|--------|--------|--------------|--------|
|                  |   |   |       |   |        |   |       |         |   |   |         |   |
| Bank      Debt        |   | $      | 34,925,149 |   |        | $      | 34,925,149 |         |   |   |         |   |   |   |
| Capital      Lease    |   |   | 49,023     |   |        |   | 49,023     |         |   |   |         |   |   |   |
| Operating      Leases |   |   | 5,932,169  |   |        |   | 1,372,485  |         |   | $      | 2,930,267    |   |   | $ | 1,629,417 |   |
|  Total           |   | $      | 40,906,341 |   |        | $      | 36,346,657 |         |   | $      | 2,930,267    |   |   | $ | 1,629,417 |   |

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

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